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wk4 cs The new president of Toyota, Akio Toyoda (grandson of the founder), has said, “Everyone...

wk4 cs

The new president of Toyota, Akio Toyoda (grandson of the founder), has said, “Everyone says Toyota is the best company in the world, but the consumer doesn’t care about the world. They care if we are the best in town.” What do you think he means by that? Answer: Toyoda understands his customers. The customer doesn’t care about global positioning or competitiveness, he or she cares only that the car they buy is reliable, attractive, effective, and efficient. The customer’s concern is his or her pocketbook, not Toyota’s. Source: Based on M. Graban, “Toyota Leaders Get a Lecture from a Toyoda,” Manufacturing Business Technology (June 28, 2009), www .mbtmag.com; M. Maynard, “At Toyota, a Giant Strives to Show Agility,” New York Times (February 22, 2008), pp. B1, C4; and J. Surowiecki, “The Open Secret of Success,” The New Yorker (May 12, 2008), p. 48.

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Answer #1

He means that there are several perceptions that are built

On one side when people say Toyota is the best, is a general perception world wide, but in the local market there is one car that is believed to better for the local market, may be because of several other factors:

  • Terrain
  • Service
  • Localized systems
  • cost or Price
  • Environmental considerations

As per the factors, Toyota might not be the no 1 in the local market and there could be customers who value one factor more on which Toyota is not the best, then they lose to that car.

Even when there is a general world view that Toyota is better, in the local market they are beaten by one or few specific factors, and then the perception of customers in that market is different and they are not the best in that town. Hence, they lose the market share.

So, to command the local markets customer focus on each local market is important and that is what is being pointed out by Toyoda here.

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