In production, the distinctive competencies and growth of Toyota consists of “not only static and improvement capabilities … but also evolutionary capabilities” (Chandler, Hagstrom & Solvell 1999, p. 22). The procedure that leads to Toyota’s distinctive capabilities involves a long time involvement in the implementation of the long-term plans in the decision-making. In addition, of the time, Toyota has invested a lot in the regional distinct influence, which has much emphasis on competiveness. The firm as a sole company has its private distinctiveness to compete in domestic market. Moreover, its hybridization borrows a lot from older ideas that contribute to current developments.
Unique Capabilities of Toyota Which Lead to Distinctive Competencies
It is the historical evolution which contributes a lot in the structure for timely “productivity, multitasking, flexible production, Total Quality Control (TQC), suppliers’ design capability and heavy weight production system” (Chandler, Hagstrom & Solvell 1999, p. 23). The entrepreneurial vision is a major contributor in Toyota’s ability because production can continue with surplus production. The knowledge transfer from Ford brings a synchronized system in the complete production chain with the Toyota therefore getting rid of buffer stocks increasing efficiency.
It is only Toyota firm that “seems to be the only Japanese company that has articulated, and implemented the new concept of final assembly as a coherent system” (Dosi, Nelson & Winter 2000, p. 245) in production. The market for Toyota is capable to maintain steady production, with the help of adequate financial facilities. Toyota has the capacity to respond better than any other company does to new evolutions of systems. The static competence of superb quality, productivity, and distribution channels as well as continuing improvements that are ever changing. This very well “combines low cost, high quality and innovative product differentiation (Grant 2005, p. 230). Toyota stresses customer and employee satisfaction, which “evolve away from traditions and practices that hinder the ability of business to engage fully with the consumer (Heller & Vienell 2003, p. 79). The static capability enables Toyota compete effectively in both domestic and international markets affecting the routine as well as static operations, which influence performance levels hence effective production because of proper information communication. This influences the reception rate, quality, and flexibility. It is the flexibility and reliability “that go beyond the single event application of techniques of lean manufacturing that can be reproduced by any business and hence lead to Toyota’s sustainable competitive advantage” (CSMA & Casey 2008, p. 91).
The capacity for improvement responds well to the changing and non-routine operations of Toyota hence better response to changes in competition. Therefore, this helps in establishment and answering of problems as well as the ability to retain established policies.
Finally, evolutionary competence also helps in dealing with non-routine and dynamic operations allowing competence to change consisting of pre and post-trial capacities: ex ante for sensible commercial ventures and ex post for sensible ability to retain and institutionalize (Dosi, Nelson & Winter 2000, p. 246). It is therefore certainly that Toyota has a strong competence both in production and in market place.