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70 years of car experience

Barriers to Entry:

•  Cost to entry

•  Government Legislation

1.  Toyota will remain first leader

2.  New entrants breach the automobile market

3.  Evolution of External Factors

  Cheap, reliable, good fuel efficiency

 Captures the market

  The big 3 cannot compete against Toyota

1st world leader

70 years of car experience

Cutting edge techniques top notch technology

Avant gardist strategy Hybrid Leader

•  Will remain Number 1 no matter what…

•  Keep innovating and always stay ahead

•  China and India Potential markets

•  However, can Toyota capture these market despite its light fall due to the crisis?

•  Reducing its cost seems to be in contradiction with its development strategy

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  U.S, Europe, Japan Stagnant Growth

  World's automakers shifted into reverse

  Cheap cars are popular in:

established markets

the developing world

 India's auto market = double to 3.3 million cars by 2014

 5 Millions 2-Wh/year Sold

  Huge Market Potential

 China's = 140% growth over the same period, to 16.5 million cars

 The fastest growing car markets in the world

 26% increase from 2004

 Aim 1 million cars by 2010

o Few people can afford it

o 30% less expansive than competitors

o 30 Different Models

o Starting Price 11 400€

o Tata made a $2,500 car

o The Nano

o Cut cost on everything

o No lack of potential customers: The midle class

  The global car market is polarizing

  2012: the market for vehicles priced under $10,000 is

likely to reach 18 million cars

  2010-11: Great Nano Success: 250 000 vehicles

  Geely has gained a domestic market share of around

10% (USD 4,800)

 

Acquire knowledge

Reduce their dependency towards a domestic market

Expend products portfolio and can introduce different range

Obtain a competitive advantage

Car trend according to 4 different factors:

Tata and Geely The Biggest car manufacturer in developing

countries

Toyota Loss of competitive advantage over green market

•  Oil is not an infinite resources

•  Need of alternative sources of energy

•  Mastering the new energy

 Key competitive advantage

 Hybrid may be outperformed

•  Strategy is not just a matter of taking the right decision. Taking the right decision, at the right time

•  The 1973 Oil Crisis boost to Toyota’s actual situation Strong Foundation

World Leader

Financial difficulties

•  The actual crisis opportunity for new comers to breach the market

•  Strategy is hard to established Many unpredictable factors

  www.toyolands.com Complete corporate history

  www.wikipedia.com : 1973 Oil Crisis – Toyota – Geely – Tata

  www.history.com : History facts about oil crisis and Toyota

  www.china-roots.com/geely/geely-auto/ : Information about Geely

  www.tatamotors.com : Official website of Tata.

  ecologie.caradisiac.com

  “Automotive Industry Analysis” by Team A