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Industry Forecasting Identify an industry of choice (Auto Industry, Healthcare, PC or Telecommunications). Using the PESTEL analysis from the readings, discuss and analyze the factors that may impact the industry and the successful marketing of a company’s product, for example Ford Motor Company over the next five years. Which factors are perceived to be the biggest weaknesses of the industry? Which factors play to the industry’s strengths? What are some opportunities for growth that could be capitalized upon over the next five years? Develop a three to four-page paper in the correct APA writing style. Include a minimum of 2-4 resources; 1 resource must be peer reviewed.
For instance.Toyota Motors Corporation (TMC) is a Japanese company and is a multinational corporation with its headquarters in Aichi. Toyota etc. There are legal structures and policies set by the governments which must be observed and abided by. Toyota has to face many political factors in their operations at foreign countries. weakness. TMC was started by Kiichiro Toyoda and came as an offshoot from Toyota Industries in the year 1937. As per the revenue. opportunities and threats that the company has (SWOT). PESTEL analysis We will carry out a PESTEL analysis of the company and identify the strengths. 1. Despite the fact that Toyota ranks . Hino. All this contributed in making Toyota one of the biggest groups globally. Japan. Toyota marked the production of its 20 millionth vehicle in the month of July 2012. in India there is no scope for FDI unless there is some sort of local partnership or alliance. Daihatsu. In 2012 Toyota reached the total global employees number of 300747. a. In the year 2010. the company was adjudged the second largest automobile corporation in the world in terms of production capacity. Political Being a multinational company. There are many more companies that come under the Toyota group like Lexus. Toyota is the ninth biggest company in the world.
GM is based locally and the government is a sizeable share holder which implies that the company will be backed up in terms of hardships. iron and steel. This is because the industry has an impact on related industries like copper. This shows the influence of automobile industry on the economic development of a country. Economic In the economic development of any country. Social Factor In the automobile industry many social factors also become significant. tariffs and price of fuels. aluminum etc. there are severe political pressures. the employment created by this industry is vast and contribute large parts of the tax collected and is advantageous to the GDP of a nation. The success of the industry depends on various other economic factors like variations in income levels. computer chips. b. price rise. glass. rubber. An example for this is the status factor associated with owning a luxury car and to a great extent this has grown in developing countries like India and Pakistan. automobile industry plays a huge role. Also. This is a . leather products. c. interest rate fluctuations.second in terms of the market share after General Motors. exchange rates.
The target markets being focused by the industry are baby boomers and the generation X. Hence in the automobile industry technological factors have become vital because consumers demand the inclusion of technology in the cars like automation. Toyota is bringing in top end technology and implementing them in their manufacturing facilities to cut down production costs while improving efficiency and quality. e. d.primary reason for the companies to incorporate these factors in the business strategy development phase. Wi-Fi. Technological Factor Automobile industry tops in terms of application of technology among the various industries based on manufacturing. At the same time the youth of generation Y also show interest in the products of this industry. tracking systems etc. Environmental Factor . GPS. The significance of technology is also of import in the production of hybrid to hydro-car designs creatively. The scale of the industry is large and the market it is trying to capture is also massive.
II. Legal Factor The functioning of the industry is also influenced by the legal factors. This has driven Toyota to work on the production of hybrid and electronic cars. The impact of automobile industry on the environment is huge as there is release of environment damaging chemical waste not just in the production stage but also during the use of vehicles by the customers. the US government penalized the company. The lapses from the company side led to several quality defects resulting in many law suits against the company. f. Toyota and similar companies are increasingly focusing resources towards addressing issues pertaining to environmental safety and hazards. As an outcome to the cases of accidents due to quality issues. SWOT Analysis .The functioning of companies in the automobile industry is also affected by some environmental factors. The recall made by Toyota in the recent times is an indication of the importance of legal factors for the companies in the automobile industry.
An example for this is the environmental friendly. Toyota is resolving these issues with strategies like inclusion of fresh . 2012). Toyota Motors has been able to capture a big chunk of the market share even in developed nations of North America where there are strong entry barriers. There have been instances of flaws in certain sections of the company’s supply chain as has been highlighted by the recalls. TMC retains a position in the top three car producers in the US. a. High manufacturing costs is an important factor for the high pricing. They are also pioneers in the management concepts such as the Toyota production system.We will now conduct the SWOT analysis of Toyota Motors Corporation based on the results of the PESTEL Analysis of the automobile industry. Strengths With a sound financial performance to back them up. technologically enhanced fuel efficient cars that are costly for the general masses. (Toyota Motors Corporation. Just in Time inventory management systems. b. Weakness The PESTEL analysis shows us that Toyota Motors also has some drawbacks. TMC has succeeded in continually offering quality and creative products to the customers over decades and has thus created big brand equity.
2011). D. growth of Yen. 2012). Threats The companies of the automobile industry including Toyota face serious threats at present. There is a plan to release nine new models from the Lexus and Scion brands to appeal to the youth oriented towards luxury and high performance cars (Snavely. d. c. political threat factors in foreign countries. It is the belief of experts that Toyota’s position in the top three automobile manufacturers would not be affected largely by the cases of recall because of their improved production processes and strategies (Buss. Another factor is the scope in capturing market in developing nations like the BRIC block. price rise. Some of them are variations in exchange rates. . Opportunities The opportunities for Toyota lie in the creation of greater demand for environment friendly cars produced by the company. economic downturn and dearth in fuel. 2013).set of suppliers and implementation of u-shaped conveyor systems in operations (Reuters.
forbes. May). B.Forbes. Information for the World's Business Leaders .Forbes. Study Says . costs. Retrieved from http://www. GM.freep. (2013). Toyota To Gain Share Through 2015. Toyota aim to increase market share. Only Ford. Retrieved from http://www. D. TOYOTA MOTOR CORPORATION GLOBAL WEBSITE.com/sites/dalebuss/2012/05/16/only-ford-gmtoyota-to-gain-share-through-2015-study-says/ • Reuters (2011). Production System. (2012.References • Buss.reuters.com/article/20130106/BUSINESS01/301060155/ New-products-lift-carmakers-hopes • TOYOTA MOTOR CORPORATION (2012).com/article/2011/01/23/retire-us-toyotaidUSTRE70M07H20110123 • Snavely. Detroit Free Press. GM. Reuters.com. Toyota's new assembly line saves time.com. . Retrieved from http://www.
Retrieved from http://www.toyotaglobal.com/company/vision_philosophy/toyota_production_sys tem/ .
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