Strategy Evaluation of Toyota

Motors
Submitted to Submitted By
Maj Gen Alauddin M A Wadud (R etd.) Name Roll Number
Department of Management Studies, FBS S. M. Mohammad Ullah 19021047
Bangladesh University of Professionals (BUP) Md. Shahin Mia 19021017
Adib Ahmed Khan 19021033
Md. Raju Ahmed 19021041
Maliha Khan 19021065
MD.Kamrul islam sajib 16011027
2 Outlines
 Introduction

 SWOT Analysis

 PESTEL Analysis

 BCG Matrix

 Five Forces Analysis

 Value Chain Analysis

 Core Competencies

 VRIO Analysis

 Recommendation
3 TOYOTA
 Globally renowned brand of cars based in Japan
 Pioneer of Lean Production System
 Famous for excellent supply chain management
 Tenth largest Company By Revenue
 2nd largest Automotive Company
 69 Manufacturing Plant
 16 R&D Sites
 Economic, Premium & Hybrid Vehicles
4 SWOT ANALYSIS
 Product recalls
 Brand equity  Weak position in Asian
 Technological capabilities markets

 Research and Innovation

 Falling RoE and RoA

 Supply chain & Distribution Network

 Large product portfolio
 Global Presence

 Regulatory threats
 AI & digital technology  Competitive pressure
 Autonomous vehicle technology  Growing costs of raw
 Asian markets materials and labor

 Diversification
5 PESTEL ANALYSIS
Technological
Social
 socio cultural differences
 large investment in technology
 good social image
 Artificial Intelligence
 Middle class
 Robotics
 the millennial generation
 social media

Economical Environmental
 Recession
 environmental regulations
 higher disposable income
 emission standards
 Increased demand
 electrical vehicles and hybrids

Political Legal

 Aggressive control of Govt.  non compliance

 Tax regime  passenger safety
 Political environment of market  environmental standards
 Trade war  labor area
 High

6 BCG Matrix
 Scion –for youth in USA
 Camry / Corolla –as hybrids
 Lexus-luxury sedans  Bio –fuel, Solar –powered , hydrogen gas

Relative Market Growth

 Prius hybrid  Diesel engine cars for India, Southeast Asia
 Land Cruiser SUV  Small cars for India / China
 More SUVs and MPVs : Fortuner

 Camry ,Corolla sedans  Celica , MR2 -for youth

 Innova , Venza –MPV  Tundra –pick-up
 Daihatsu -small cars  Crown, Cressida, Corona, Quails: Withdrawn
 Declining markets in UK, Europe
 Petrol cars to be phased –out

High Relative Market Share Low

Low
 7 Five Forces Analysis
substitute products
 Moderate threat
 ride sharing services
 Public transportation

Bargaining power of suppliers

Bargaining power of  Low
customers Rivalry
 Smaller compared to Toyota
 very highs
 Very High  scattered globally
 Financially strong brands
 Information from internet  Lack of financial strength
 After sales services  Framed rules imposed by Toyota

New entrants
 Very Low
 high barriers to entry and exit
 Requirement of large financial investment
 Difficulties to build brand equity
8 Value Chain Analysis
Primary activities
 Inbound logistics
 Vehicles parts is sourced from sourced from suppliers around the globe.
 A network of warehouses & distribution centers to collect parts from supplier
 Outbound logistics
 The central distribution center in Europe manage the core supply chain
 ships thousand of parts to regional depots daily
 Operations
 Brand with Global operations with headquarters in Japan
 Manufacturing Plant & R&D Centers across the globe
 Marketing & sales
 A mix of traditional and modern advertising mediums
 Own website, social media, sales & distribution channel
 Race, Motor show
9 Value Chain Analysis
Support activities
 Technology
 Production technology, technological innovation, exceptional engineering.
 struck partnerships with institutes like MIT and Stanford for faster innovation
 Infrastructure
 large infrastructure globally
 presence in most of the major markets of the world
 HRM
 A human centric approach to value creation
 human capital can be a major source of competitive advantage
 Procurement
 formulated a specific policies and principles for purchasing
 worked to contribute to local economies
10 Core Competencies
 Technological capabilities
 far excels most of its competitors
 Excellent technological capabilities in manufacturing, supply chain as well as sales and service
 Customer loyalty
 millions of loyal customers around the world
 Quality and passenger safety
 Supply chain network
 Excellent supply chain network around the globe
 Manufacturing Plant & R&D Centers across the globe
 Global Presence
 international manufacturing, distribution and sales network
 products sell in more than 170 countries
11 VRIO ANALYSIS
 Technological innovation for differentiation
 Innovation for making efficient cars
 Leader of hybrid cars
 Growing investment in line of electrified vehicles
 Focus to be the leader of autonomous driving

 Waste reduction for excellent production

 Focus on managing efficient production
 Lean Manufacturing System
 Cost competitiveness from waste elimination
 Higher profitability from controlled operational cost
12 Recommendation
 Focus on fast growing Asian markets
 Diversify for faster growth:

 Invest in marketing and customer engagement

 Allocate resources efficiently
 Invest in sub brands
 Make hybrid technology cheaper

 Identify market trends and target markets

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