Toyota's Licences

348 Words2 Pages
Should the company license in more technology / IP? Why or why not Automobile industry has fierce competition that forces companies to be more innovative in order to compete. Therefore, research and development have become one of the most important departments in the companies. Toyota is a successful company that maintains its developments and becomes market leader. However, in the contemporary world it is not enough have a big and successful R&D anymore. For that reason, Toyota tries to be efficient in its R&D activities. For Toyota, it is important to widen its network in order to understand the market where it sells its cars. Therefore, Toyota is trying to license in technology in these countries in order to reach its customers. For example, when Toyota entered the USA market which was different market that Toyota did not know, it alliances with GM to get used to the market. Although Toyota has a unique R&D department, automobile industry is developed more quickly than ever. Automobiles have been becoming more technological and more computerized. For that reason companies which are in different sectors try to collaborate with each other in order to become more innovative with efficiency. For instance, Toyota has alliance with Microsoft for the inside of the cars technology. With this collaborating, Toyota is able to save money and become innovative company. Toyota produces hybrid cars which are not knew but also is not common. However, it is obvious that in the future it will be used more because of the lack of gas and the environmental issues. Infrastructures that hybrid cars need will be set up in everywhere. Therefore, Toyota also will need to license in with these infrusture companies in order to keep up market and reach the customers. To sum up, it is obvious that innovation is the bone of the all industries. However, it would not be enough
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