Vrio- Analysis of Toyota
Toyota Production System(TPS)
Based on the Just- in- Time production, the Toyota Production System built vehicles based on immediate market demands rather than in anticipation of future demands. This unique strategy was created to cut costs and to eliminate waste.
Valuable: Yes, because it has been proven to keep production costs low.
Rare: Yes, just-in-time production is a popular strategy used by companies in all industries, however Toyota’s ...view middle of the document...
Organization: Yes, Toyota has been using this system since the 1960’s and have been perfecting it along the way.
Competitive Implication: This creates a sustained competitive advantage
Time-Based Competition Strategy(TBC)
Process that includes both reduced cycle time and reduced costs, while increasing profits and accelerating growth.
Valuable: Yes, in addition to the benefits mentioned above, TBC creates increased value differentiation, increased variety and flexibility, and strengthened relationships with customers.
Rare: No, other companies use this system, however Toyota and other Asian companies were one of the first ones to start using it.
Inimitable: No, other companies such as Wal- Mart and Dell use TBC to improve their leading market share within their respective industries.
Organization: Yes, the company adopted the strategy and has been very successful in doing so
Competitive Implication: This creates competitive parity
Human Resource Management System
For Toyota human resource is the cornerstone for a high level of employee loyalty and commitment to qualify
Valuable: Yes, because the knowledge base on all employees is used to improve equipment reliability and productivity, thereby lowering maintence and operting costs