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. * 2. Buyer power is strong due to the number of competitors’ products available.* 3. Threat of substitution to automotive industry is minimal, but for Toyota, threats are strongest from the used car market.* 4. Threat of new entrants is low because entrance to the industry requires large scale capital, intellectual property and well established distribution networks.* * Datamonitor –EBSCO
1.

…contd.
5. Power of complementors is moderately

low(manufacturers of navigation systems, audio systems, fuel manufacturers, etc.) 6. 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
 Strong financial performance  Brand image  Strong performance in Asia

Weakness
 Poor profitability of

‘financial services’ segment
 Expenses related to post

region  Research and development activities  Toyota production system

retirement benefits for employees

…contd.
Opportunities
 Increasing demand for hybrid

Threats
 Economic slowdown  Competition in the global

electric vehicles
 Opportunities in Asian

market
 New models

automotive market  Tightening emission standards  Appreciating Japanese Yen against US Dollar

Reference- Toyota – Company Profile, Datamonitor, EBSCO