Nahian kabir Sarkar

Presentation Outline
Introduction
General Environment Analysis

Industry Environment Analysis

Competitors Analysis
Internal Environment Analysis

SWOT Analysis
Recommendation
Conclusion

Introduction
Inception of Toyota Founded by Kiichiro Toyoda, Japanese

businessman in 1937

3rd positioned in automotive company in the current market

Competitors of Toyota - General Motors and Ford in United

States and Honda in Japan.

Sale of Vehicle by unit- 8.871 million units

Net Income earned in 2013 - Yen 962.1 billion

General Environment Analysis

The general environment analysis process has four steps:

Scanning, monitoring, forecasting and assessing (Hanson

et el. 2011).
Has six segments:
Demographic: Toyota faces a decreasing population in
Japan (-0.1%)
Macroeconomic: -Interest rates, exchange rates &
inflation. Rise in Yen makes Japan a high cost production
location & requires Toyota to move production overseas

General Environment Analysis

Political/Legal: - Laws enacted in some countries to reduce Cos

create challenges to Toyota.

Socio-cultural: - Changes in values and preferences of customers and
the society at large provides both threats and opportunities.
Technological: - There is a technological shift taking place in the
automobile industry. while Toyota continues to stick with hybrid
technology, other companies (such as GM with the Chevy Volt) are
starting to introduce all electric vehicles.
Global: - The move toward the globalization of markets requires
Toyota to become more of a global company.

The Four Characteristics of global economy

1. The economic integration
2. The capital movements
3. Production has no correlation to the employment
4. The internet

Porters Five Competitive Forces

Competitive environment analysis

Auto Industry Market Share in 2013
Toyota
Volkswagen
Ford
Chevrolet
Hyundai
Nissan
Honda
Kia
Renault
Fiat

2.30%
2.40%
9.60%

3.10%

4.80%
7.60%
5.10%
5.30%

5.90%

7.00%

Net Income Comparison

25000

20529

M
i
l
l
i
o
n
s

20222

20000

18994

18950

18584

Toyota

15000

Volkswagen
10000
6557

5000

6380

Ford
5664

3418

2717
1082

1550

2009

2010

2011

2012

Contrast of Sale
10000

T
h
o
u
s
a
n
d
s

9000

8000
7000
6000
5000

Toyota

4000

Volkswagen

3000

Ford

2000

1000
0

2009

2010

2011

2012

Internal Environment Analysis

To attract & attain customers with high-valued
products & services & the most satisfying ownership
experience in America
To be the most successful & respected car
company in America
World domination with regard to car supply.
The company seeks to achieve market leadership by
delivering value to customers & providing high quality
vehicles

Internal Environment Analysis

CORE COMPETENCIES
Produce
- What is needed
- In the amount that is needed

Total quality control

Involve all workers in the company

(BEING INCLUSIVE)

Computer integrated manufacturing

to include:
- Design
- Production
- Distribution
- After sales service
- Support in the field
- Use computers & IT

- To achieve total effectiveness of

the production system
- To ensure total productive
maintenance

All workers to meet customers needs

Internal Environment Analysis

VALUE CHAIN OF TOYOTA

1.Efficient & effective marketing and sales service

a. Qualified staff
b. Marketing program (Oh What a Feeling)
2. Supply after sales service
a. handle complaints & provide solutions
b. provide sales training
3. Efficient production method
a. Toyota has quality instruments to assemble & tune new car engines
b. Has an effective method of stopping work if there is a problem therefore there
is no poor quality
4. Upright inbound logistics ensures:
a. The clients demands are met
b. therefore there is no storage costs or wastage do to lack of demand
5. Good accessibility:
a. Toyota manages its own showrooms in all countries
b. Toyota does not outsource its services
c. the products are easily accessible & their values are not inflated.

SWOT Analysis

Recommendation
Business level strategy >>
Focus on technology and innovation of
Hybrid vehicles as future
differentiation strategy
Develop fuel efficient, compact vehicles
for emerging markets
Functional level strategy >>
Operation strategy : Focus on product quality control, continuous
learning and improvement on manufacturing systems for efficiency
Marketing strategy : Reinforce Toyota brand image to restore
reputation and build brand loyalty to increase value of Toyota

Recommendation
Enhance market share >>
Develop presence in emerging markets; China and India
Concentrate on USA market by Americanize the design,
production and marketing
Invest and expand in European market

Continuous learning and improvement of Toyota product and process

through technology and innovation

Increase customer responsiveness; identify and satisfy needs,
improve support and after sale services

Conclusion
Toyota has sources of strong competitive advantages in global

automotive industry, such as TPM, value chain, strong brand,

wide product offering and hybrid vehicles
Major recalls, economic crisis, natural disasters and intense
global competition have posed serious challenge for Toyota
Growing emerging markets and shifting customers demands
offer opportunities for Toyota to attain superior profitability
and growth
Toyota must sustain its competitive advantages to retain its
position and achieve future success

Thank You