The Art Of War Case Analysis

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One of the reasons why companies expand internationally is to have access to new markets. One such global company, who this writer happens to be very familiar with, is an automobile dealer group called Weins Canada, which is a wholly-owned subsidiary of Weins Group in Japan. The company got its start in 1956 with its first dealership network, called Yokohama Toyopet. The company’s founder, Kanji Miyahara Sr., saw an opportunity to diversify and, potentially, to add exponential growth in profit to his company by opening a Toyota franchise in Canada. So, in 1973, and working closely with Toyota Canada, Don Valley North Toyota began operations. Needless to say, Weins Group has profited enormously due to this calculated risk.
This success certainly did not happen just by luck. Mr. Miyahara likely considered several factors in his decision to expand to Canada, including the business climate, competition, currency issues and, of course, the lifestyle of his own son and his family, who would spend many years overseeing operations in Canada, and who continue to do so today. However, one of the more significant factors that certainly influenced his decision was the developing fuel crisis.
In The Art of War, Sun Tzu says “Know your Enemy and Know Yourself”. Before committing to his investment in Canada, Mr.
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Miyahara also “knew” himself. He understood that he could just as easily have taken a Volkswagen, Honda or Datsun franchise. But he had lived and breathed Toyota since 1956. He believed in the product, and he believed in the “customer first” business model that he helped create. So, in this instance, he stayed with what he knew and limited this experiment to one store, which increased his odds of success. Furthermore, he understood that doing business in Canada would be exceedingly different than in Japan, and that none of his Japanese managers were in a position to directly oversee these operations, regardless of their otherwise excellent

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