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1. Introduction 2 2. Ownership advantages 3 2.1 Toyota Production System (TPS) and Just-In-Time (JIT) management 3 2.2 Resource – based view: core competencies of Toyota 4 3. Internalization advantages 6 4. Location advantages 7 4. Conclusion 8 References 9 Appendix 10

1. Introduction
As the leading auto manufacturing company, Toyota is not only the symbol of Japan, but also the one of the best business models for MNCs expansion overseas. Since the company was established in 1937, it has experienced many changes and challenges. However, depending on the distinguished competitive advantages in quality of cars and perfect management, ultimately, Toyota achieved huge success worldwide. In 2010, for example, …show more content…

Moreover, depending on the core technology transfer and production internalization, Toyota could keep its sustainable competitive advantages and get the strong property rights to protect their products in developing countries that the intellectual property protection laws is usually not integrated.
4. Location advantages
According to the Toyota official announcement, currently, there are four main markets Toyota operates: Japan, Europe, North America and China (see Appendix - figure II). Relying on this global segmentation strategy, Toyota could get two obvious advantages： a. Toyota could utilize the large market and advanced technology in industrialized countries in order to keep its long-term competing advantages in the market by enhancing its core competencies. For example, Toyota established subsidiaries of Motor Engineering & Manufacturing Inc. and Calty Design Research Inc. in Europe and the United States. The aim is to improve their R&D abilities. b. Compare to industrialized nations, emerging/developing countries have unique conditions in cheaper labor forces, abundant natural resource and huge potential market. Take China as an example, in 2008, the hourly average wage of Chinese worker only occupied 4.2 percent of American’s (Bureau of Labor