New book argues Toyota owes success to curiosity
Though this week Toyota has unofficially dropped to No. 2 globally for year-to-date sales, it remains to be seen if GM can retain its top position in the face of Toyota's relentless pursuit. So how did a Japanese maker of weaving looms get to be the Japanese Juggernaut it is today? A new book by David Magee argues that the company owes its success to an internal culture of curiosity.Toyota's founder, Sakichi Toyoda, was determined to create the world's finest weaving looms. He did so by checking out other company's looms around the world and using their advancements to improve his owncompany's products. And in the 1920s, a visit to a GM factory intrigued him, and the rest is history. Magee says in his book, "How Toyota Became No. 1", that Toyoda's philosophy of seeking out new ideas was fostered in his employees and remains one of the company's greatest attributes.
Keith McFarland talks about the book in his "BusinessWeek" column, suggesting that while other automakers focused solely on retaining their market share and satisfying stockholders, Toyota has for decades been straying from worn paths to find new ideas. So as GM and Ford fought over which company has the best truck for decades, Toyota's been developing hybrid technologies and perfecting the world's best-selling passenger cars. As for what's happening to the Tundra, well, there are risks when straying from the worn paths you know.
[Source: BusinessWeek]
Reader Comments (Page 1 of 3)
Stéphane Dumas 8:26PM (10/22/2007)
It could be interesting to compare with this book titled: "The United States of Toyota" then I spotted at Amazon.com http://www.amazon.com/United-States-Toyota-Squandered-Americas/dp/1592993028/ref=sr_1_1/103-7801616-3219021?ie=UTF8&s=books&qid=1190786123&sr=1-1
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elprogramer 8:22PM (10/22/2007)
Right, and the fact that GM is *still* the leader (by a wide margin) in Research and Development is of no consequence?
Toyota got to where it is by good market research, lean production, imbalanced trade, and solid engineering. That, and a fuel scare.
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AlexP 8:27PM (10/22/2007)
Actually, Ford leads in R&D.
howard 12:15PM (10/23/2007)
I've said for years the Japanese never had an original idea in their lives and now old man Toyoda' has backed me up in what i said! they steal everything from those who R&D it. I worked for Oscar Mayer running a Weinie Tunnel. The Japanese bought a tunnel and were making Fish Weinies. They sent a group over to tour our facility and a memo was sent around NOT TO LET THE JAPANESE ANY WHERE NEAR THE CLSP TUNNEL. (CONSTANT LINE SPECIAL PRODUCTS)! This Tunnel produced 6foot long round Balogna, Salami, and square Cheses loaf, pickel loaf, spiced ham loaf and others. If the Japanese would have gotten near it with the cameras in their eye glass hinges and lapel pins which incidently were American flag pins with a camera lense for one of the stars they would have gotten enough information to build one of these special tunnels. Oscar Mayer never did sell them a CLSP Tunnel that I know of!
Dunkin 10:50AM (10/23/2007)
Racism + Toyota bashing, geez, this blog gets better and better everyday.
willem 12:08PM (10/23/2007)
Dunkin
There's nothing racist about calling out the obvious and blatant copying performed by the Japanese. To say so otherwise would be denying a long-held tradition of their aping the West.
Russell 8:24PM (10/22/2007)
It remains to be seen if Toyota can stay #1.
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J M C 3 8:27PM (10/22/2007)
Toyota's secret to success..Benchmarking.Finding aspects about design,engineering,manufacturing,customer relations etc. and not just copying ,but methodically improving over the original model (American,German)
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AlexP 8:28PM (10/22/2007)
I suppose the new Camry and Tundra are improvements by your standards.
lol, no.
J M C 3 8:49PM (10/22/2007)
They aren't?
Vivek 10:47PM (10/22/2007)
The Tundra is a improvement over what? A Yugo?
willem 12:52PM (10/23/2007)
J M C 3
Oh, c'mon, they're copying. Jap camera companies didn't just coincidentally make lenses that could mount German cameras after the war. Toy's first car (the AA in 1936) was a carbon-copy ripoff of American companies and technologies: the chassis and electricals were identical to Fords and the styling was "inspired" by Chrysler's Airflow of the era.
J M C 3 12:30PM (10/24/2007)
Yep.Copying from the best and then improving it.That's sort of the definition of "benchmarking".
bmw122487 8:30PM (10/22/2007)
"The Worlds greatest car company" hahaha, the most boring perhaps, the only interesting cars they built was the supra and maybe the MR2, the rest are as interesting as toasters. A great car company combines passion with function.
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paul34 8:54PM (10/22/2007)
Exactly, because Susie Soccer Mom and Joe Sixpack Officeworker are always looking for a track beast and/or straight line monster
Take a look at what people want, and what they buy. Then look at what Toyota mostly makes. Then, turn around and realize why they've been so successful.
Car enthusiasts are a MINORITY - always remember that.
bmw122487 9:03PM (10/22/2007)
there are still plenty of car companies that build cars that even non car people find attractive and bond with, soccer moms deserve style too, so i agree to disagree.
elprogramer 9:20PM (10/22/2007)
The trick paul, is that not everyone is a car enthusiast, but they still want something that screams power.
The Viper helped turn around Chrysler, just as the Camaro is going to boost Chevrolet. Toyota has no such halo car, relying on word of mouth, which is rapidly eroding.
Why do you think Honda and Nissan are pushing "sportier" models?
tekdemon 11:48PM (10/22/2007)
Passion or power or whatnot, people vote about what they want with their wallets. So if you think Toyota is boring then apparently people voted for boring. If you really think people want cars that look like they have power, then Toyota must make cars that look like they're sporty then, lol.
Seriously, you can rant all you want about what people supposedly want in a car, but people vote with their pocketbooks, and their pocketbooks have been voting for the Camry.
Hell, I own a Camry now, and do you know why I bought it? Because it's boring and comfortable and familiar and reliable and handsome enough. Does this mean I don't want to drive a Porsche 911 Turbo if given the chance? lol, of course I'd LOVE to have some fancy sports car, but what I'd love to have and what I actually needed aren't the same thing. If anything, I was driving like a dipsh*t street racer wannabe, and I realized that I didn't really care to end up dead, so I went and bought a Camry and learned to actually drive.
So guess what? People DO want boring. Fast and exciting sounds great, but safe and unassuming are pretty awesome when you want to go get groceries, or you're driving all your friends to the movies (roomy and comfy ride), or you want to latch down a car seat for your kid.
And I see a lot of people ranting about how it's not worth the trade off for the reliability or whatever. Well, maybe not to you, but some people actually can't afford to just not show up to work because their coil packs failed (and don't bring up the oil sludge argument, I run synthetic and maintain my car quite well).
seoultrain 2:43AM (10/23/2007)
tek, go check out a mazda6. Practicality and fun can coexist.
Maestro1 4:33AM (10/23/2007)
@seoultrain
+1
I'd pitch a BMW (since i've had great experiences with them) but i'm sure someone would go off about reliability.
By the way Tek, if I were in your position I would have opted for the Honda Accord. Its engine is better, its also fuel efficient and reliable and the new one looks MUCH better than the old one and definitely better than the Camry. If you ever have the money to trade up, think about it ;-).