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
Weakness
 Strong financial performance
 Poor profitability of
 Brand image
‘financial services’ segment
 Strong performance in Asia
region
 Research and development
activities
 Toyota production system
 Expenses related to post
retirement benefits for
employees
…contd.
Opportunities
Threats
 Increasing demand for hybrid
 Economic slowdown
electric vehicles
 Opportunities in Asian
market
 New models
 Competition in the global
automotive market
 Tightening emission
standards
 Appreciating Japanese Yen
against US Dollar
Reference- Toyota – Company Profile, Datamonitor, EBSCO