Journal of Strategic Management Studies
Online ISSN : 2434-124X
Print ISSN : 1883-9843
Invited papers
Evaluation of Toyota’s Strategy for BEV in Overtaking Tesla: Based on the Theories of Dynamic Managerial Capabilities and Ordinary Capabilities
Hideyuki Kobayashi
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2022 Volume 14 Issue 1 Pages 49-66


Toyota’s long-term refusal to seriously develop battery EVs has allowed Tesla and other companies to outpace it, causing problems with the company’s dynamic managerial capability. Toyota has subsequently changed its stance, adopting an “omnidirectional strategy” and shifting to a policy that focuses on battery EVs, while beginning to pursue competitors, using appropriate product and cost strategies. Toyota’s range and battery costs are believed to be about two years behind those of Tesla.

Toyota has always had excellent management capabilities, including sound operations management and a well-structured management-control system. If Toyota can demonstrate its dynamic managerial capabilities by adopting appropriate product and cost strategies, it will eventually be able to offer cars that achieve the same performance as those made by Tesla and other automakers at a similar price. When such products compete on the same playing field, Toyota’s carefully cultivated reliability and durability could surpass those of Tesla. However, Tesla is rapidly improving its Ordinary Capabilities, so one cannot be too optimistic.

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