Toyota 2020

Abstract

In 2020, Toyota Motor Corporation (Toyota) was in its fourth year of implementing its Connected Strategy as it underwent a once-in-a-century transformation from being a “car company” to a “mobility company”. The declaration of this shift was much more than a semantic change – it reflected how it needed to change its approach to the creation of value in the new and dynamic market it was striving to enter. The automotive industry was in the midst of a CASE (Connected, Autonomous, Shared, Electric) and MaaS (Mobility as a Service) revolution. Innovation of new business and services became an urgent priority. In January 2020, Toyota announced it would build a “Woven City” as a living and collaborative laboratory that would thrive with new services and technology innovations. However, management faced challenges in fostering an innovative and entrepreneurial culture to quickly develop new business ideas in addition to the technical R&D they were accustomed to. Eita Kawamoto, a business development manager, had completed a design thinking collaboration with a graduate business school in April 2020. He studied the outcomes and faced the dilemma of whether to continue the industrial-academic partnership and what actions he could undertake to increase the effectual mindset of employees in Toyota. When analyzing this case, students will examine strategic options for Toyota’s growth, consider implications of transitioning from being a manufacturer to a platform service provider, understand benefits and challenges of open innovation, and consider what impact proximities can have on collaborations.

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