Global ManagementTable of ContentsIntroduction11. Major factors that enabled Japan to resurrect their motor vehicle industry after WW II22. Internal company factors and external environmental factors that allowed Toyota to successfully compete in Europe43 Why is it difficult for European Car producers to compete in Japan7Conclusion7References8Appendix A10Appendix B12Appendix C14IntroductionToyota began selling cars in Europe under a distributor agreement in 1963. Eventually this has lead to the maturing of the company into the leading Japanese car manufacturer in this highly competitive market. According to its annual report Toyota has invested over Ã¢ÂÂ¬6 billion throughout Europe since 1990, and currently employs approximately 80,000 people, both directly and through dealership channels in Europe. 'Toyota's operations in Europe are supported by a network of 28 National Marketing and Sales Companies in 48 countries, a total of 3,000 sales outlets, and eight manufacturing plants, with a ninth under construction in Russia' (Toyota Annual report 2007). Toyota continues to grow as an important player in Europe in geographical perspective as in terms of market share with its unique and successful strategy.
1. Major factors that enabled Japan to resurrect their motor vehicle industry after WW IIAt the end of World War II, the Japanese government asked the European Automakers to curtail exports to Japan in order to help Japan rebuild its industry. The Europeans reprociated by limiting their market to Japanese cars (C_p.267). As a result the quotas were very limited (e.g. Italy, 3,000 cars per year, France, Britain, Spain and Portugal approximately three percent share of their market). These quotas protected the domestic market and allowed European carmakers to become more competitive before the European Community made a transition to the common market. As the economy grew, Japan wanted to access the European market. The desire of Japanese Car Manufacturers for expansion related to several reasons.