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TOP CAR COMPANIES IN THE PHILIPPINES

1. Toyota Motor Corporation

2. Mitsubishi Motor Corporation
3. Hyundai Motor Corporation
4. Nissan Motor Company, Ltd.
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BRIEF INTRODUCTION
• To y o t a was Japan’s largest car company and the world’s
third largest by the year 2000. The company was producing
almost 5 million units annually in the late 1990s and
controlled 9.8% of the global market for automobiles.
Although its profits declined substantially during the global
e c o n o m i c d o w n t u r n o f t h e e a r l y 1 9 9 0 s , To y o t a r e s p o n d e d b y
cutting costs and moving production to overseas markets.
The company represented one of the true success stories in
the history of manufacturing, its growth and success
re f l e c t i v e o f J a p a n ’s a s to n i s h i n g re s u r g e n c e f o l l o w i n g Wo r l d
Wa r I I .
 STRENGTH WEAKNESS
• Strong brand image • Hierarchical organizational
structure
• Global supply chain
• Secrecy in organizational
• Rapid innovation structure
capabilities • Effects of product recalls in
• One of the strongest recent years
brands in the global • Toyota’s global hierarchical
automotive industry organizational structure
prevents maximum
flexibility of regional
operations
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BRIEF INTRODUCTION
• Mitsubishi Motors Corporation, or commonly known
as Mitsubishi Motors, is a Japanese multinational
automotive manufacturer founded by Iwasaki Yataro
in April 1970 and headquartered in Minato, Tokyo,
Japan. In 2011, Mitsubishi Motors was the sixth-
largest Japanese automaker and nineteenth largest
worldwide by production. Since October 2016,
Mitsubishi has been one-third (34%) owned by
Nissan, and thus a part of the Renault-Nissan-
Mitsubishi Alliance
 STRENGTH
• Mitsubishi Motors has always
been highly focused on
customers
• Company has been involved in
the creation of new designs that
are in tune with the current
demands of the market.
• Mitsubishi has positioned their
vehicles as being both safe and
durable.
• The company gives a lot of
importance to detail.
WEAKNESSES
• Mitsubishi Motors have got into serious issues
regarding misinterpretation of their emissions
data
• The company has been facing critical challenges
on leadership.
• Most of Mitsubishi’s products are in the sedan
or the SUV category. The company has minimal
or no presence in hatchback or crossovers
• The company has faced a lot of criticism
regarding the lack of after-sales service centers
in most countries.
• After the Volkswagen scandal, Mitsubishi had
come out stating fudging of fuel economy data.
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 BRIED INTRODUCTION
• Nissan is a Japanese multinational automobile manufacturer which designs,
engineers, produces, markets and distributes automobile and other vehicles,
headquartered in Nishi-ku, Yokohama, Japan. It was founded in December
1933 by Yoshisuke Aikawa, Masujiro Hashimoto, William Gorham and
Rokuro Aoyama.
• Nissan has established itself as a global player in the car manufacturing
sector. It is the sixth largest producer of motor vehicles in the world, and
the third largest in Japan.
• Although it only officially became known as Nissan Motor Company PTY
LTD in 1934, the company had been producing motor cars since 1914. The
DAT, named after the original investors Den, Aoyama and Takeuchi, was
the company’s first car. In 1932 the car was renamed the Datsun, and in
1937 became the first motor vehicle to be mass produced in Japan.
STRENGTH
• Successful Renault-Nissan
Alliance
• Effective R&D spending
resulting into best-selling electric
vehicle in the world
• Strong presence in the leading
and emerging automotive
markets
• Well-managed company’s
operations
• Highly skilled workforce through
successful training and learning
programs
WEAKNESSES
• Poor marketing and
advertising capabilities
resulting in poor brand
awareness
• Massive product recalls in
the U.S.
• There are gaps in the
product range sold by the
company. This lack of choice
can give a new competitor a
foothold in the market.
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BRIEF INTRODUCTION
• Hyundai is a South Korean multinational automotive
manufacturer which is mainly headquartered in
Seoul. It was founded on December 29, 1967 by
Chung Ju-yung, today’s CEO of the company is
Chung Eui-sun. Hyundai came from the native word
“Hanja” which means modernity. They use this name
to describe their automobiles as the modern car of
tomorrow that you can get in your hands today.
 STRENGTH
• Multi-awarded company due
to excellence in safety and
design
• One of the highest automotive
brand reputation in the world
• Effectiveness of the Research
and Development spending
that makes their car innovative
• Low cost yet high quality cars
• Strong in China’s market
WEAKNESSES
• Poor Brand Portfolio, though
they were a large company, their
company still sell only 2
different brands
• Low Presence in the Strongest
Market (U.S.) ano no presence in
Japan
• Bad quality of top management
• Recalls causing bad reputation
OPPORTUNITIES FOR AUTOMOBILE INDUSTRY
• Expansion of Markets
• Strategic Alliances
• Introducing fuel-efficient vehicles
• OEM Priorities
THREATS FOR AUTOMOBILE INDUSTRY
• Intense internal Competition
• High fixed cost and investment in R & D
• Sluggish Economy
• Votality in the Fuel Prices
PORTER’S FIVE
A. Threat of New Entrants
B. Suppliers
C. Buyers
D. Substitute Products
E. Rivalry
A. THREAT OF NEW ENTRANTS
• Decrease in number of customers
• Low on sales
• Lessen the Investors
• Your Company will have tendency to bankrupt
B. BARGAINING POWER OF SUPPLIER

• Supplier Concentration: Large number of suppliers.

• Presence of Substitute Inputs: Switching costs are low which decreases

the supplier’s bargaining power.

• Differentiation of Inputs: Low differentiation of inputs.

• Importance of Volume to Supplier: Increases the power of suppliers.

• Impact of Inputs on Our Cost of Ability to Differentiate: Decreases the

power of Suppliers.
B. BARGAINING POWER OF SUPPLIER (CONT.)

• Threat of Forward or Backward Integration: Danger of Vertical

Integration

• Access to Capital: Profitability remains strong.

• Access to Labor: Has favorable terms.

C. BARGAINING POWER OF BUYER

• Buyer Concentration versus Industry Concentration: Buyer will

concentrate more in the price which they can bargain for lower prices.

• Buyer Switching Costs: Customers can easily change from one to another
brand at no extra cost.

• Buyer Information: How strong the position of buyer is?

• Threat of Backward Integration: Buyer’s demand, concessions.

• Pull Through: Buyer has no power.

C. BARGAINING POWER OF BUYER (CONT.)

• Brand Identity of Buyers: Crucial marketing strategy.

• Price Sentivity: Buyer has low power.

• Price of Total Purchases: Buyer’s power is high.

D. SUBSTITUTE PRODUCT

• Automobile industry’s purpose is for people to have their own

transportation, but in terms of prices in which is cheaper, having your own
car or using public transportation? The answer to this is public
transportation, that’s why public transportation like buses, trains and
airplane cause bad effect on automobile industry.

• As of here, only few people can afford to buy their own vehicle due to its
high price that’s why they prefer using public transportation like buses and
trains.
E. RIVALRY

• As of in the Philippines there are over 50 different automotive

companies that compete with each other

• Despite of having over 50 different automotive companies there are

only 10 companies in which we can say greatly influence the
automobile industry, these companies are surely the ones that can
give high-end automobiles.
E. RIVALRY
• As of February 2020, automobile industry has an annual total of 167,718
units which has an average of 40% lower than last year. All of automobile
company has a declining total units sold as represented on the table below:
SOURCE: HTTPS://WWW.AUTOINDUSTRIYA.COM/FEATURES/2020-PHILIPPINE-AUTO-SALES-
DOWN-40-TO-248-171-UNITS.HTML
• As of 2021, some car brands started to increase their price, such as Ford, Hyundai
and Mitsubishi (which applied a 20,000 price hike on their automobile).
• Due to pandemic, government restrictions caused the automobile industry to delay
their innovation and production. And as people demand for new vehicles that suits
for the pandemic, automobile industries failed to imply on these demand that caused
a huge loss in the units sold, as represented on the table above.
• As pandemic started, public transportation were forced to enclose their operation
due to government restrictions. Since people need to have social distancing, people
are not allowed to use public transportation and it takes time before those public
transportation be ready for the new normal that is implemented by the government.
Government suggested that if it is necessary to go outside and a transportation
vehicle is needed it is better if we use our private vehicle rather that public vehicle
because it decrease the chance of being infected by the virus
RECOMMENDATION