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Brief View of Toyota. Bhavik Dodhia Ginu George Laura Martin Omolara MacGregor Ali . Industry analysis:-Toyota . Supplier power is considered to be moderate as it does not rely on any single supplier. * Buyer power is strong due to the number of competitors’ products available.*
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Brief View of Toyota Bhavik Dodhia Ginu George Laura Martin Omolara MacGregor Ali
Industry analysis:-Toyota • Supplier power is considered to be moderate as it does not rely on any single supplier. * • Buyer power is strong due to the number of competitors’ products available.* • Threat of substitution to automotive industry is minimal, but for Toyota, threats are strongest from the used car market.* • Threat of new entrants is low because entrance to the industry requires large scale capital, intellectual property and well established distribution networks.* * Datamonitor –EBSCO
…contd. • Power of complementors is moderately low(manufacturers of navigation systems, audio systems, fuel manufacturers, etc.) • Toyota is one of the largest automobile manufacturers in a mature industry hence there is a very high level of competition. (Main competitors are GM, Ford, VW, Fiat, Honda, etc.) Reference – Porter’s Analysis, Strategic Management: Chapter 3. (Haberberg and Rieple)
External Factors affecting Toyota • Regional political climate could affect a global company like Toyota. • The recent massive recalls of their cars has put Toyota under enormous politico-legal scrutiny. (Eg. US and UK govts) • The credit crunch has affected a globalised organisation like Toyota. • Appreciation of Yen affects Toyota because most of the company’s business transactions are conducted in dollars. (Payments in dollars are converted into Yen)
…contd. • Shift in attitude towards increasing greener practices (Toyota is a major player in the hybrid car industry). • Recent recalls could affect Toyota’s reputation of being “most reliable” car maker. • Green technology, increasing usage of high tech features, more features in every car has lead to a technological revolution in the whole industry. • Toyota is a major pioneer in implementing fuel cell technology successfully albeit on a minor scale. Reference- Toyota – Company Profile, Datamonitor, EBSCO
SWOT Analysis Strength Weakness • Strong financial performance • Brand image • Strong performance in Asia region • Research and development activities • Toyota production system • Poor profitability of ‘financial services’ segment • Expenses related to post retirement benefits for employees
…contd. Opportunities Threats • Increasing demand for hybrid electric vehicles • Opportunities in Asian market • New models • Economic slowdown • Competition in the global automotive market • Tightening emission standards • Appreciating Japanese Yen against US Dollar Reference- Toyota – Company Profile, Datamonitor, EBSCO