General Motors (GM) and Toyota competed in the international automobile industry for a lot of decades. While GM hung on to the Number 1 position longer than any other automaker, it lost this position to Toyota in 2008. It took Toyota to surpass on GM but only 2 years for GM to recover the top position in 2011. Through a brief evaluation of the history of these two rivals, I describe why Toyota and GM attested different ways of falling from the Number 1 spot.
I assert that the reason for the reversal of leadership positions for both of these automakers could be understood by analyzing executive hubris and also the way it either facilitated course dependence or promoted a departure from an established course for the perpetuation of market leadership. I then demonstrate the way their CEOs injected hubris nearly the same way within their choices to hold on to the top place and how GM and Toyota acted contrastingly with respect to path dependence. Contrary to the myth that is longstanding, I also demonstrate that it was hubris--as opposed to humility--that qualified executive leadership in Toyota in its last 15 years. Recommendations for practicing or budding executives of big corporations are specified.
Strategic Roads That Diverge or Converge GM and Toyota in the Battle for the Top case study solution
Publication Date: January 15, 2014 Product #: BH589-HCB-ENG
This is just an excerpt. This case is about Leadership & Managing People
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