Introduction Company Background Toyota company was founded by Kiichiro Toyota in 1937 as a spin-off from his fathers company (Ronkainen and Ronkainen 535). It is headquartered in Toyota, Aichi, Japan, though, there are factories in most parts of the world. The company is headed by President Akio Toyoda and the board of Directors. Toyota produces vehicles under five brands. These are Toyota, Hino, Lexus, Ranz, and Daihatsu (Nkomo 6). Its main objectives imply the companys further evolution and increase in the number of sales. At the current moment, it is one of the most profitable cars manufacturing companies as there is a tendency towards the growths of its incomes (Nkomo 9). Industry Background and Competitive Situation The fact is that the current competitive situation is complex. A number of car manufacturing companies condition a great level of rivalry. Such brands as Volkswagen, Ford, GM are the main actors who determine the evolution of the market. Volkswagen Group has an advantageous position in Europe, while Ford and GM hold leading positions on the American market. These facts could be taken as their main strengths as there is the opportunity to acquire new customers. However, Toyota has a certain competitive advantage as it is considered the greatest car manufacturer in the world and produces about 7.17 million vehicles annually (Nkomo 9). Market Structure The current international car market could be considered the most important and profitable aspect of the world economy. Global sales of vehicles hit 73.9 million cars in 2015 (Kubota para. 6). This sales level guarantees the giant income for the main manufacturers. The current market size is about $700 billion dollars (Ferguson 4). For this reason, this sphere is attractive for the leading actors. Case problem Problem Situation Background Recently the company faced a problem that had a great pernicious impact on its image. The defective design of floor mats resulted in an increased risk to the patients safety. Improperly installed, they could interfere with the accelerator pedal and guarantee the speed gain, which is extremely dangerous (Ronkainen and Ronkainen 536). The problem resulted in the initiation of the procedure of recalls and the negative market response. Presentation of Facts Bearing on the Problem The given incident could be considered important as Toyota proclaimed security to be one of the greatest values appreciated by the company. However, the problems of this sort might obviously lead to serious traffic incidents. The negative aftermath of the floor maps defective design should be mitigated by the wise and well-thought-out solution that will be able to satisfy customers demands and guarantee the improvement of the companys image. Case Issues Analyzing the given case, there are several important issues that should be given attention. The problem was first discovered in Prius (Ronkainen and Ronkainen 536). This model was given great importance as its main aim was to attract an extra audience and guarantee stable positions on the world market. However, the inability of the given vehicle to assure security to its owners resulted in a decrease in the brands popularity. At the same time, Toyotas main rivals were able to us