Toyota Prius
1.- What micro environmental factors affected both the first generation and second generation models of the Toyota Prius? How well has Toyota dealt with these factors?
The micro environmental factors are those forces close to a company, yet outside its internal environmental, that influence the ability of a business to serve its customers, forces such as customers, suppliers, competitors and other business that assistor influence a business’s ability to sell, distribute, promote and develop products or services.
In regards the Toyota Prius case, the factors that the company dealt with are:
Customers: Toyota launched the first generation in 2001 with a small, cramped and not attractive car into a market were the big SUV’s were dominating the business. They were bringing to the market a low consume, environmentally friendly and high tech vehicle. In my opinion, Toyota took a risk launching a vehicle that was fitting future need’s that customers were going to have with the upcoming economic situation (gas price increment).
Toyota launched the second generation improving the fuel consumption and improving the lacks on the first version: style and capacity. The biggest success was to anticipate the customer needs.
Suppliers: Without the support of suppliers, Toyota would not have be able to launch the first generation. Toyota needed the suppliers to be onboard on this risky project in which they were developing a new technology that requires a high capital investment up front with a high risk of failure.
Competitors: First generation did not have direct competitors since it was the only hybrid vehicle on the market. I consider that the challenge for Toyota on the first generation was to create a market niche for this new vehicle concept. The scenario was different for the second generation were the market niche existed already and new competitors were getting into the business. Honda with the hybrid Civic, Mercury with the Mariner and Ford with the Escape were
The micro environmental factors are those forces close to a company, yet outside its internal environmental, that influence the ability of a business to serve its customers, forces such as customers, suppliers, competitors and other business that assistor influence a business’s ability to sell, distribute, promote and develop products or services.
In regards the Toyota Prius case, the factors that the company dealt with are:
Customers: Toyota launched the first generation in 2001 with a small, cramped and not attractive car into a market were the big SUV’s were dominating the business. They were bringing to the market a low consume, environmentally friendly and high tech vehicle. In my opinion, Toyota took a risk launching a vehicle that was fitting future need’s that customers were going to have with the upcoming economic situation (gas price increment).
Toyota launched the second generation improving the fuel consumption and improving the lacks on the first version: style and capacity. The biggest success was to anticipate the customer needs.
Suppliers: Without the support of suppliers, Toyota would not have be able to launch the first generation. Toyota needed the suppliers to be onboard on this risky project in which they were developing a new technology that requires a high capital investment up front with a high risk of failure.
Competitors: First generation did not have direct competitors since it was the only hybrid vehicle on the market. I consider that the challenge for Toyota on the first generation was to create a market niche for this new vehicle concept. The scenario was different for the second generation were the market niche existed already and new competitors were getting into the business. Honda with the hybrid Civic, Mercury with the Mariner and Ford with the Escape were