Toyota Motor Company: An Analysis Of Toyota's Business
Toyota is the largest car manufacturer in the world today. In 2016 alone, Toyota produced more than 10.3 million vehicles across the world. Through multiple mergers and acquisitions, Toyota Motor Group has acquired a large variety of car companies. This allows them to meet the needs of many different types of consumers and have allowed them to successfully penetrate multiple car markets. To meet the needs and desires of their upper class target market, they have the luxury car company Lexus. To meet the needs of their middle class to lower class target market, they produce affordable and high quality cars such as the Toyota Corolla. This high diversity and ability to meet a large variety of consumer’s needs gives them a competitive advantage over other car companies. Another key strength is the high focus that Toyota puts on innovation. They care about the natural environment, and use many alternatives to petroleum fuel such as electricity, hydrogen, biofuel, and natural gas, contributing to environmental
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With companies like General Motors, Honda and Ford, there are a large number of competitors in the low cost vehicle market. Because of the sheer size of the market, different companies have very similar cars with virtually the same features, which is why it can be difficult for these companies to gain a competitive advantage. Another threat to Toyota is the current political situation. As tension between the Middle East and the U.S. continues to grow, the way the exportation of oil is affected directly affects the auto industry. For example, if the price of oil goes down, this will decrease the sales for Toyota’s electric cars, and if the price goes up, it will decrease their sales for their gas powered cars. Because the automobile industry has virtually no control over oil prices, it can become a risk when the price fluctuates in either direction, which is why it is important to have alternatives to petroleum
With companies like General Motors, Honda and Ford, there are a large number of competitors in the low cost vehicle market. Because of the sheer size of the market, different companies have very similar cars with virtually the same features, which is why it can be difficult for these companies to gain a competitive advantage. Another threat to Toyota is the current political situation. As tension between the Middle East and the U.S. continues to grow, the way the exportation of oil is affected directly affects the auto industry. For example, if the price of oil goes down, this will decrease the sales for Toyota’s electric cars, and if the price goes up, it will decrease their sales for their gas powered cars. Because the automobile industry has virtually no control over oil prices, it can become a risk when the price fluctuates in either direction, which is why it is important to have alternatives to petroleum