Strategy 1: Digital R&D
Driver Factors
The rapid development and globalization of the world have become the reason for the technological changes in Toyota. They should enhance communication between the seller and the customer even during an epidemic or other disasters. However, the driver for using the
‘Digital R&D’ strategy is establishing an effective flow of information for the target category, which will promote Toyota products and services (Morgan and Liker, 2020). Moreover, the changing competitive environment in the car sales market stimulates Toyota to implement a new strategy in order not to lose its customer signal.
Specific Implemention
A special application must be developed for Toyota to apply cloud technology solutions. The application’s primary purpose is the organization and effective management of data. Accordingly, the application must include the ability to provide basic driver services. For example, in the application, it is possible to view the characteristics of the car model and receive notifications about insurance or information about technical malfunctions of the car (Morgan and Liker, 2020) The application should have a function of consultation and representation of Toyota in case of problems with operation. Such implementation of the ‘Digital R&D’ strategy is fully consistent with the diffusion of innovation theory (Pirruccello, 2020). It is because the theory explains how specific products and services become popular, and the application is aimed at promoting Toyota.
Feasibility
Furthermore, Toyota’s competitors are already working on implementing new cloud technologies for digital innovations’ fast and reliable availability. For example, BMW is using cloud technologies to maximize the potential of future generations of cars (Rashid, 2022). Nevertheless, their strategy also includes the management of vehicle data. Toyota’s business strategy also consists of this aspect, which allows the company’s employees to receive automatic information about the car connected to the general network. However, BMW has already developed conditions for protecting the personal data of application users, which is a necessary legal factor. During the operation of the BMW application, it has already been proven that drivers are satisfied with the information they can receive (Rashid, 2022). That is route planning, updates on the temperature outside, and detection of danger on the road. Furthermore, user feedback allows BMW to make changes in developing new cars to meet customers’ needs.
Risk and Barrier Information
It is crucial to highlight the principal risks and barriers that Toyota may face in implementing its Digital R&D strategy. First, developing new modified services or products may be more expensive, complicated, and take longer than expected (Bican and Brem, 2020). Meanwhile, there is no certainty that the application launch will be commercially successful. In addition, preliminary studies only roughly indicate how widespread the application will be among users.
Strategy 2: Digital Marketing
Driver Factors
Recently, more internet and new technologies have played an influential role in people’s lives. Therefore, presenting Toyota in the digital space has become a prerequisite for development (Reddy et al., 2021). This is particularly important given the innovations offered by competitors. Hence, social media and online advertising are now one of the most effective ways to increase the customer base (Lies, 2021). Moreover, according to innovation theory, one should first find early supporters and gain loyalty when launching a new product. In this way, digital marketing can help achieve these goals.
Specific Implemention
Toyota uses two primary strategies: digital printing and social media. In order to enhance the company’s efficiency, changes need to be implemented. With the help of e-mail, it is possible to continue sending offers to customers and disseminate information about the company with the assistance of social networks (Rashid, 2022). Nevertheless, it is also essential to apply the concept of online video marketing. Thus, short and informative videos posted on social networks, YouTube, and other resources can demonstrate the benefits provided by Toyota.
Feasibility
In a dynamic space, the digital marketplace becomes vulnerable to change, which is why it is imperative to implement changes systematically. For example, Kia divided the market into homogeneous groups. Thus, for each signal, they created a branding plan. The company uses Instagram to publish new products because people use Kia cars worldwide (Rakita, Madić and Marković, 2017). Meanwhile, they use influencer marketing to influence a specific audience. That is, the firm selects people who are famous in certain groups of people to advertise products and services. It is crucial to mention that Toyota does not do this marketing.
Risk and Barrier Information
Digital marketing also has specific barriers and risks, such as the lack of a model or progress. It is because implementing digital marketing requires the involvement of significant resources (Santoso et al., 2020). Therefore, if all the strategies and requirements of the market and consumer preferences are not studied, the model will be chosen incorrectly (Bala and Verma, 2018). Accordingly, the company will lose money and time, for which competitors will gain new clients.
Reference List
Bala, M. and Verma, D. (2018) ‘A critical review of digital marketing,’ International Journal of Management, IT & Engineering, 8(10), pp. 321-339.
Bican, P. M. and Brem, A. (2020) ‘Digital business model, digital transformation, digital entrepreneurship: Is there a sustainable “digital?’ Sustainability, 12(13), p. 5239.
Lies, J. (2021) ‘Digital marketing: Incompatibilities between performance marketing and marketing creativity,’ Journal of Digital & Social Media Marketing, 8(4), pp. 376-386.
Morgan, J. M. and Liker, J. K. (2020) The Toyota product development system: Integrating people, process, and technology. New York: Productivity Press.
Paunov, C. and Planes-Satorra, S. (2019) ‘How are digital technologies changing innovation?: Evidence from agriculture, the automotive industry and retail,’ OECD Science, Technology and Industry Policy Papers, 74, p. 53.
Pirruccello, A. (2020) ‘Performance management reform at Toyota Motor North America,’ Performance Management Transformation: Lessons Learned and Next Steps, pp. 23-26.
Rakita, B., Madić, V. and Marković, D. (2017) ‘Competitive strategies of late followers in auto industry: Case study Hyundai-Kia,’ Industrija, 45(1), pp. 1-10.
Rashid, M. M. (2022) ‘Germanys position in the world on globalization, technology and innovation,’ Journal of Economics Bibliography, 9(3), pp.149-153.
Reddy, L. S. et al. (2021) ‘Advertising strategies of Hyundai Motors in Indian market,’ International Journal of Accounting & Finance in Asia Pasific, 4(1), pp,104-115.
Santoso, I. et al. (2020) ‘Is digital advertising effective under conditions of low attention?’ Journal of Marketing Management, 36(17-18), pp.1707-1730.