The significance of a smart city for transformation of an automaker’s business model: a case study of Toyota’s Woven City

Jun Akabane

Chapter 3 in Clusters in Times of Uncertainty, 2024, pp 49-66 from Edward Elgar Publishing

Abstract: This chapter explores the significance of Woven City for the transformation of Toyota’s business model. We first conceptualize the value chain, competitive advantage, and business model in the automobile industry and then discuss the effects of demonstration experiments planned in Toyota’s Woven City. As a result of the discussion, we have extracted the three effects symbolically expressed by “open innovation,” “servitization,” and “scope of economy.” Specifically, the effect of “open innovation” directly enhances Toyota’s capability to make a proper collaboration with other clusters and enables Toyota to develop its unfamiliar resources through the collaboration. The effect of “servitization” makes Toyota experience various use cases and enables Toyota to exercise its leadership in new service-related businesses. The effect of “scope of economy” provides Toyota abundant opportunities to apply its technologies across a wide range of areas since carbon neutralization is an urgent agenda item in the world.

Keywords: Economics and Finance; Innovations and Technology; Urban and Regional Studies (search for similar items in EconPapers)
Date: 2024
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