Date:
19th, June, 2008
Level:
Master Thesis EFO 705, 15 credits
Authors:
Sixing Guo
China
guosixing@hotmail.com
Pasapoo Upathamwaranon
Thailand
pasapoo@hotmail.com
Title:
The Internationalization Process of Toyota in Europe: From the Perspectives of Entry Mode and Network Structure
Tutor:
Leif Linnskog
Research Problem:
In European market, what entry mode did Toyota select? Why did they select those entry modes? And how did they manage their internal and external network structure during the entry mode evolution process?
Purpose:
We describe and explain how Toyota conquered the European market from the perspective of entry mode and network. And we also intend to provide some useful information to the companies that want to gain experience before entering into the European market.
Method:
We design this thesis as a case study about the entry mode of Toyota in the European market. In order to get an in-depth understanding of the research problem, the qualitative research approach is chosen. During the analysis part, all the information is derived from the secondary documents, such as website, articles and so on.
Conclusion:
After the analysis the process of Toyota developed in the European market, we found that after careful consideration about both internal and external factors, Toyota usually prefers to conquer a new market with a relevant low risk entry mode, such as exporting or licensing, in the beginning. Then, with the increase of their experience as well as the growth of network, they began to change to a higher risk level entry mode, like joint venture or wholly owned subsidiaries. During the evolution process, in order to provide an effective way of interaction between headquarters and subsidiaries, Toyota’s structure changed from time to time.
Keywords:
Internationalization, Entry mode, Toyota, Network structure
2008. , p. 44