1. Bhavik Dodhia
Ginu George
Laura Martin
Omolara MacGregor
Ali

2. Industry analysis:-Toyota
1. Supplier power is considered to be moderate as it does
not rely on any single supplier. *
2. Buyer power is strong due to the number of competitors’
products available.*
3. Threat of substitution to automotive industry is
minimal, but for Toyota, threats are strongest from the
used car market.*
4. Threat of new entrants is low because entrance to the
industry requires large scale capital, intellectual property
and well established distribution networks.*
* Datamonitor –EBSCO

3. …contd.
5. Power of complementors is moderately
low(manufacturers of navigation systems, audio
systems, fuel manufacturers, etc.)
6. Toyota is one of the largest automobile
manufacturers in a mature industry hence there is a
very high level of competition. (Main competitors
are GM, Ford, VW, Fiat, Honda, etc.)
Reference – Porter’s Analysis, Strategic Management: Chapter 3.
(Haberberg and Rieple)

4. External Factors affecting Toyota
 Regional political climate could affect a global
company like Toyota.
 The recent massive recalls of their cars has put
Toyota under enormous politico-legal scrutiny. (Eg.
US and UK govts)
 The credit crunch has affected a globalised
organisation like Toyota.
 Appreciation of Yen affects Toyota because most of
the company’s business transactions are conducted
in dollars. (Payments in dollars are converted into
Yen)

5. …contd.
Shift in attitude towards increasing greener practices
(Toyota is a major player in the hybrid car industry).
Recent recalls could affect Toyota’s reputation of
being “most reliable” car maker.
Green technology, increasing usage of high tech
features, more features in every car has lead to a
technological revolution in the whole industry.
Toyota is a major pioneer in implementing fuel cell
technology successfully albeit on a minor scale.
Reference- Toyota – Company Profile, Datamonitor, EBSCO

6. SWOT Analysis
Strength Weakness
Strong financial performance
Brand image
Strong performance in Asia
region
Research and development
activities
Toyota production system
Poor profitability of
‘financial services’ segment
Expenses related to post
retirement benefits for
employees

7. …contd.
Opportunities Threats
Increasing demand for
hybrid electric vehicles
Opportunities in Asian
market
New models
Economic slowdown
Competition in the global
automotive market
Tightening emission
standards
Appreciating Japanese Yen
against US Dollar
Reference- Toyota – Company Profile, Datamonitor, EBSCO