Toyota, the Japanese automotive giant, began its foray into the American market in 1957. At that time, the automotive industry was dominated by American manufacturers, with giants such as General Motors, Ford and Chrysler leading the way. Toyota, then relatively small and unknown outside Japan, had to contend with an extremely competitive market and consumers loyal to American brands.

To succeed, it had to innovate. The company introduced the Toyota Production System (TPS), a revolutionary approach to manufacturing that emphasized efficiency and quality. TPS, also known as "Lean Manufacturing", is based on two fundamental principles: Jidoka" ("autonomation" in the simplified diagram below), which means that faults are corrected as soon as they are detected, and "Just-In-Time", which ensures that parts are produced only when they are needed.

Toyota Production System

This production method has enabled Toyota to reduce waste, improve product quality and cut costs, giving the company a significant competitive edge. Toyota vehicles quickly became synonymous with reliability and value, earning the trust of American consumers.

The disruption caused by Toyota in the U.S. automotive market was considerable. Not only did Toyota offer a competitive alternative to American cars, but its production system also forced the entire industry to rethink its operations. American automakers, faced with declining market share, had to adopt similar practices to remain competitive, leading to an overall improvement in quality and efficiency in the automotive industry.

Over the years, Toyota has continued to innovate, notably in environmental technology with the launch of the Prius in 1997, the world's first mass-market hybrid vehicle. This breakthrough confirmed Toyota's position as a leader in the development of cleaner, more sustainable automotive technologies.

Today, Toyota is one of the world's largest automakers, with a significant presence in the US market. The company continues to build on its heritage of innovation and quality, while meeting the mobility challenges of the future. The strategy that began in 1957 with the introduction of avant-garde production methods has enabled Toyota to transform the automotive landscape and become a key player on the world stage.

To find out more, read this article on low-end disruption.