Bhavik DodhiaGinu George

Laura MartinOmolara MacGregor

Ali

Industry analysis:-Toyota 1. 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

…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 AnalysisStrength WeaknessStrong financial

performanceBrand imageStrong performance in

Asia regionResearch and

development activitiesToyota production

system

Poor profitability of ‘financial services’ segment

Expenses related to post retirement benefits for employees

…contd.Opportunities ThreatsIncreasing demand for

hybrid electric vehicles

Opportunities in Asian market

New models

Economic slowdownCompetition in the

global automotive market

Tightening emission standards

Appreciating Japanese Yen against US Dollar

Reference- Toyota – Company Profile, Datamonitor, EBSCO