Ahmad U3072227

Ario Ardianto Baroto U3088020

Fatima Al Ghardaqa U3035594

Julie Wang U3060588

Tsering Choden U3105935

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

Porter’s Five Competitive Forces

Competitive environment analysis

9.60%

7.60%

7.00%5.90%5.30%

5.10%

4.80%

3.10%

2.40%2.30%

Auto Industry Market Share in 2013

Toyota

Volkswagen

Ford

Chevrolet

Hyundai

Nissan

Honda

Kia

Renault

Fiat

Net Income Comparison20529

18950 18994 18584

1082 1550

3418

6380

2717

6557

20222

5664

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Toyota

Volkswagen

Ford

Contrast of Sale

0

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7000

8000

9000

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2009 2010 2011 2012

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Toyota

Volkswagen

Ford

Internal Environment AnalysisTo 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 AnalysisCORE COMPETENCIES

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

Total quality control

All workers to meet customers’ needs

Involve all workers in the company(BEING INCLUSIVE)

- To achieve total effectiveness of the production system

- To ensure total productive maintenance

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

Internal Environment Analysis VALUE CHAIN OF TOYOTA1.Efficient & effective marketing and sales service

a. Qualified staffb. Marketing program (Oh What a Feeling)

2. Supply after sales servicea. handle complaints & provide solutionsb. provide sales training

3. Efficient production methoda. Toyota has quality instruments to assemble & tune new car enginesb. Has an effective method of stopping work if there is a problem – therefore there

is no poor quality4. Upright inbound logistics ensures:

a. The clients’ demands are metb. therefore there is no storage costs or wastage do to lack of demand

5. Good accessibility: a. Toyota manages its own showrooms in all countriesb. Toyota does not outsource its servicesc. the products are easily accessible & their values are not inflated.

SWOT Analysis

RecommendationBusiness 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

RecommendationEnhance 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