toyota_presentation
TRANSCRIPT
TOYOTA MOTOR CORPORATIONDriving Strategic Changes.
FANTASTICFIVE +1STRATEGISTS
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
AGENDA
Introduction of Company
External Analysis
Internal Analysis
Strategic Challenges
Strategic Recommendations
TOYOTA MOTOR CORPORATION FANTASTICFIVE +1STRATEGISTS
OBJECTIVE“Provide an in-depth analysis of TOYOTA and its external environment
and propose a set of strategic recommendations that will drive
success.”
TOYOTA MOTOR CORPORATION
Founded in August 1937
World’s Largest Automaker in 2012
338,875 Employees Worldwide
540 Subsidiaries
220 Affiliates
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
EXTERNAL ANALYSIS
• High buyer sensitivity
• Low cost of switching to another brand
• Industry is dependent on customer preference
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
PORTER’S 5 FORCES
POLITICALSUPPLIER’S POWER
BUYER’S POWER
THREAT OF NEW ENTRANTS
THREAT OF SUBSTITUTES
INDUSTRY RIVALRY
• Price of manufacturing material fluctuates
• Companies rely on different types of material
• Large number of suppliers
• High start-up capital required
• Products differentiated by engineering quality
• Possibility of retaliation by existing companies• Many alternative transportation methods
• New alternatives such as Uber
WEAK
STRONG
WEAK
MEDIUM
STRONG
TOYOTA MOTOR CORPORATION
COMPETITOR ANALYSIS
CHEVROLET VOLT FORD FOCUS
World’s Largest Automaker
Global Revenue: $156 B
‘One Ford’ Initiative
Domestic Revenue: $13 B
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
INTERNAL ANALYSIS
1. Customer First
2. Respect for People
3. International Focus
4. Continuous Improvement and Innovation
TOYOTA MOTOR CORPORATION
VISION
“Most respected and admired company.”
MISSION
“We deliver outstanding automobile products and services to our customers, and enrich
our community, partners and environment.”
4 CORE VALUES
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
TOYOTA’s STRATEGY
DUAL ADVANTAGE: Low Cost + Differentiation
BRAND IMAGE: Durable and High-Quality Cars
TOYOTA PRODUCTION SYSTEM (TPS): Efficient Manufac-turing
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
FINANCIAL ANALYSIS
TOYOTA MOTOR CORPORATION
FINANCIAL ANALYSIS
2010 2011 2012 2013 2014
0
5
10
15
20
25
16.72
11.52
2010 2011 2012 2013 2014
0
5
10
15
20
25
INVENTORY TURNOVERNET INCOME ($ in Billions)
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
STRATEGIC ANALYSISCHALLENGES, OPTIONS & RECOMMENDATIONS
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
STRATEGIC CHALLENGES
INTENSE COMPETITIVE
LANDSCAPE IN
NORTH AMERICA
RISING DEMAND FOR
ALTERNATIVE ENERGY
CARS
DECLINING CORPORATE
REPUTATION OF TOYOTA
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
STRATEGIC OPTIONS
INTENSE COMPETITIVE
LANDSCAPE IN
NORTH AMERICA
Increase Investment in Production FacilitiesPROS
+ Better accommodate American car demand and taste+ Increase in brand loyalty and recognition
CONS- High cost- Cultural differences between countries
PROS+ Increase total sales of cars+ Increase brand reputation+ Product diversification
CONS- Increase in production costs- Customer confusion and obscure profitability
Introduce New Modelsand Innovative Cars
CONS- Technology would be shared- May hurt Toyota’s brand image
PROS+ Improve technology for current models+ Full advantage of the inventions
PROS+ Faster development and innovation+ Save R&D cost + Focus on the current car models
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
STRATEGIC OPTIONS
Increase R&D Investment
CONS- High risk in alternative energy development- High technological development costs
Partnerships with Companies
RISING DEMAND FOR
ALTERNATIVE ENERGY
CARS
CONS- Limit the product options for customers- Reduction in sales
PROS+ Lower production costs+ Does not risk brand image+ Restore brand loyalty and trust
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
STRATEGIC OPTIONS
Increase Customer Responsiveness & SupportPROS
+ Restore brand loyalty and trust+ Show awareness of customer concerns
CONS- High cost for implementation
Stop Production ofInferior Models
DECLINING CORPORATE
REPUTATION OF TOYOTA
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
SHORT-TERMSTRATEGIC RECOMMENDATION
TOYOTA hybrid
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
SHORT-TERMSTRATEGIC RECOMMENDA-
TION
TOYOTA hybridNEW HYBRID MODELS
• Corolla
• Yaris
• Sienna
• RAV4
PLUG-IN EVs: Expand beyond Prius
Pioneering FUEL CELL VEHICLES (FCV)
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
SHORT-TERMSTRATEGIC RECOMMENDA-
TION
MARKETING
PR Campaign for Alternative Energy Cars
• “It is Safe to Save the Environment” Campaign
• Establish brand image for alternative energy
• Build trust in safety
• Build customer loyalty
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
X
LONG-TERMSTRATEGIC RECOMMENDATION
TOYOTA MOTOR CORPORATION
FANTASTICFIVE +1STRATEGISTS
T OYO TA X T E S L ANew Partnership. New Brand.
Fueling Infrastructure.
Target New Customer Segment.
Innovation in EVs and FCVs
LONG-TERMSTRATEGIC RECOMMENDATION
Reshaping Brand Image.