Description
Supplier power is considered to be moderate as it does not rely on any single supplier. *
Buyer power is strong due to the number of competitors’ products available.*
Threat of substitution to automotive industry is minimal, but for Toyota, threats are strongest from the used car market.*
Threat of new entrants is low because entrance to the industry requires large scale capital, intellectual property and well established distribution networks.*
* Datamonitor –EBSCO
Bhavik Dodhia
Ginu George
Laura Martin
Omolara MacGregor
Ali
Industry analysis:-Toyota
1 !u""lier "o#er is considered to $e moderate as
it does not rely on any single su""lier %
& Buyer "o#er is strong due to the num$er o'
com"etitors( "roducts availa$le%
) Threat o' su$stitution to automotive industry is
minimal* $ut 'or Toyota* threats are strongest
'rom the used car market%
+ Threat o' ne# entrants is lo# $ecause entrance
to the industry re,uires large scale ca"ital*
intellectual "ro"erty and #ell esta$lished
distri$ution net#orks%
% Datamonitor –EBSCO
-contd
. /o#er o' com"lementors is moderately
lo#0manu'acturers o' navigation systems*
audio systems* 'uel manu'acturers* etc1
2 Toyota is one o' the largest automo$ile
manu'acturers in a mature industry hence
there is a very high level o' com"etition 0Main
com"etitors are GM* 3ord* 45* 3iat* 6onda*
etc1
Reference – Porter’s Analysis, Strategic Management:
Chapter ! "#a$er$erg an% Rieple&
78ternal 3actors a9ecting
Toyota
?
:egional "olitical climate could a9ect a
glo$al com"any like Toyota
?
The recent massive recalls o' their cars has
"ut Toyota under enormous "olitico-legal
scrutiny 07g ;! and ;< govts1
?
The credit crunch has a9ected a glo$alised
organisation like Toyota
?
A""reciation o' =en a9ects Toyota $ecause
most o' the com"any(s $usiness transactions
are conducted in dollars 0/ayments in
dollars are converted into =en1
-contd
?
!hi't in attitude to#ards increasing greener
"ractices 0Toyota is a ma>or "layer in the hy$rid
car industry1
?
:ecent recalls could a9ect Toyota(s re"utation o'
$eing ?most relia$le@ car maker
?
Green technology* increasing usage o' high tech
'eatures* more 'eatures in every car has lead to a
technological revolution in the #hole industry
?
Toyota is a ma>or "ioneer in im"lementing 'uel cell
technology success'ully al$eit on a minor scale
Reference' (oyota – Company Pro)le, Datamonitor, EBSCO
!5OT Analysis
Strength Weakness
?
!trong Anancial
"er'ormance
?
Brand image
?
!trong "er'ormance in
Asia region
?
:esearch and
develo"ment activities
?
Toyota "roduction
system
?
/oor "roAta$ility o'
BAnancial services(
segment
?
78"enses related to "ost
retirement $eneAts 'or
em"loyees
-contd
Opportunities Threats
?
Increasing demand 'or
hy$rid electric vehicles
?
O""ortunities in Asian
market
?
Ce# models
?
7conomic slo#do#n
?
Dom"etition in the glo$al
automotive market
?
Tightening emission
standards
?
A""reciating Ea"anese
=en against ;! Dollar
Reference' (oyota – Company Pro)le, Datamonitor, EBSCO
doc_486963867.ppt
Supplier power is considered to be moderate as it does not rely on any single supplier. *
Buyer power is strong due to the number of competitors’ products available.*
Threat of substitution to automotive industry is minimal, but for Toyota, threats are strongest from the used car market.*
Threat of new entrants is low because entrance to the industry requires large scale capital, intellectual property and well established distribution networks.*
* Datamonitor –EBSCO
Bhavik Dodhia
Ginu George
Laura Martin
Omolara MacGregor
Ali
Industry analysis:-Toyota
1 !u""lier "o#er is considered to $e moderate as
it does not rely on any single su""lier %
& Buyer "o#er is strong due to the num$er o'
com"etitors( "roducts availa$le%
) Threat o' su$stitution to automotive industry is
minimal* $ut 'or Toyota* threats are strongest
'rom the used car market%
+ Threat o' ne# entrants is lo# $ecause entrance
to the industry re,uires large scale ca"ital*
intellectual "ro"erty and #ell esta$lished
distri$ution net#orks%
% Datamonitor –EBSCO
-contd
. /o#er o' com"lementors is moderately
lo#0manu'acturers o' navigation systems*
audio systems* 'uel manu'acturers* etc1
2 Toyota is one o' the largest automo$ile
manu'acturers in a mature industry hence
there is a very high level o' com"etition 0Main
com"etitors are GM* 3ord* 45* 3iat* 6onda*
etc1
Reference – Porter’s Analysis, Strategic Management:
Chapter ! "#a$er$erg an% Rieple&
78ternal 3actors a9ecting
Toyota
?
:egional "olitical climate could a9ect a
glo$al com"any like Toyota
?
The recent massive recalls o' their cars has
"ut Toyota under enormous "olitico-legal
scrutiny 07g ;! and ;< govts1
?
The credit crunch has a9ected a glo$alised
organisation like Toyota
?
A""reciation o' =en a9ects Toyota $ecause
most o' the com"any(s $usiness transactions
are conducted in dollars 0/ayments in
dollars are converted into =en1
-contd
?
!hi't in attitude to#ards increasing greener
"ractices 0Toyota is a ma>or "layer in the hy$rid
car industry1
?
:ecent recalls could a9ect Toyota(s re"utation o'
$eing ?most relia$le@ car maker
?
Green technology* increasing usage o' high tech
'eatures* more 'eatures in every car has lead to a
technological revolution in the #hole industry
?
Toyota is a ma>or "ioneer in im"lementing 'uel cell
technology success'ully al$eit on a minor scale
Reference' (oyota – Company Pro)le, Datamonitor, EBSCO
!5OT Analysis
Strength Weakness
?
!trong Anancial
"er'ormance
?
Brand image
?
!trong "er'ormance in
Asia region
?
:esearch and
develo"ment activities
?
Toyota "roduction
system
?
/oor "roAta$ility o'
BAnancial services(
segment
?
78"enses related to "ost
retirement $eneAts 'or
em"loyees
-contd
Opportunities Threats
?
Increasing demand 'or
hy$rid electric vehicles
?
O""ortunities in Asian
market
?
Ce# models
?
7conomic slo#do#n
?
Dom"etition in the glo$al
automotive market
?
Tightening emission
standards
?
A""reciating Ea"anese
=en against ;! Dollar
Reference' (oyota – Company Pro)le, Datamonitor, EBSCO
doc_486963867.ppt