...Analysis of Toyota Motor Corporation By: Thembani Nkomo This paper will explore the external and internal environment of Toyota Motor Corporation, and suggest recommendations to sustain its competitive advantage. Analysis of Toyota Motor Corporation by Thembani Nkomo ANALYISIS OF TOYOTA MOTOR CORPORATION TABLE OF CONTENTS 1 COMPANY OVERVIEW 2 EXTERNAL ENVIRONMENT OF THE AUTOMOTIVE INDUSTRY 2.1 Industry Overview and Analysis 2.2 Industry Life Cycle 2.3 Industry Demand Determinants 2.4 Porter’s Five Forces 2.5 Industry Cost Structure Benchmark 2.6 Industry Competitive Landscape 2.7 Major Competitors 2.8 Key Success Factors in Industry 3 INTERNAL ENVIRONMENT OF TOYOTA 3.1 Core Competencies 3.2 Distinct Competency 3.3 SWOT Analysis 3.4 BCG Matrix: Internal Analysis of Toyota Portfolio 3.5 VRIO Framework Analysis 3.6 Toyota’s Efforts in Emerging Economies 3.7 Case Study: Toyota’s Successful Strategy in Indonesia 3.8 Strategic M&A, Partnerships, Joint Ventures, and Alliances 3.9 Analysis of Financial Performance 4 RECOMMENDATIONS 5 APPENDICES 6 REFERENCES Analysis of Toyota Motor Corporation by Thembani Nkomo 1. TOYOTA CORPORATE OVERVIEW: Founded in 1937, Toyota Motor Corporation is a Japanese company that engages in the design, manufacture, assembly, and sale of passenger cars, minivans, commercial vehicles, and related parts and accessories primarily in Japan, North America, Europe, and Asia. Current brands include Toyota,...
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...Executive Summary This report provides a strategic analysis on Tesla. The findings consist of an Internal and External analysis of the Automotive Industry focusing mainly on the UK, a resource based view and value chain analysis of Tesla, an analysis of two PR crises and to conclude an evaluation of Tesla’s strategies. 1. External Analysis The main findings from a PESTLE analysis found that legal and technological factors had the most significant affect on the UK automotive industry. In particular UK laws that enforce vehicle CO2 emission standards are forcing manufacturers to produce more eco-friendly cars. In addition, fast changing technology is increasing innovation and creating new market segments such as the Electronic Vehicle. The main findings from a Porters 5 Forces Analysis shows: The threat of new entrants is low, the risk of substitutes is low, the buyer bargaining power is high, supplier bargaining power is moderate and the intensity of rivalry is high. This concludes that the industry is still attractive and profitable for those who are already in it. 2. Internal Analysis An internal analysis of Tesla showed that their man competitive advantage comes from their vast amount of intellectual property and infrastructure. Tesla also has large amounts of capital being invested into the company to further boost production and innovation. 3. PR Crises The two examples of PR crises found that Tesla is a company who take CSR and brand reputation seriously. They are...
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...Proton’s External Environment Analysis Contents Introduction 4 PART: 1 Proton Introduction 4 About Proton 4 PART: 2 Proton’s External Environment Analysis 5 2.1 PESTEL Analysis 6 2.1.1 Political and legal factors 7 2.1.2 Economic Factors 7 2.1.3 Social-Cultural Factors 8 2.1.4 Technological Factors 8 2.1.5 Environmental Factors 11 2.2 PROTON’s SWOT Analysis 12 2.3 Industry Analysis 12 Proton five forces model 13 2.3.1 Threat of New Entrants 13 2.3.2 Bargaining Power of Suppliers 13 2.3.3 Bargaining Power of Customers 14 2.3.4 Threats of Substitutes 14 2.3.5 Competitive Rivalry between Existing Players 14 2.4 Some other external factors 15 2.4.1 Change in Customer Demand 15 2.4.2 Globalization 16 PART: 3 17 Recommendation 17 3.1 How can we deal with the pressure of innovation? 17 3.2 Cost Control 19 3.4 Innovative feature’s pricing decision 20 3.4 Dealer knowledge in customers 20 Conclusion 20 References 22 Appendixes 25 Appendix-1 Supplier spending on R&D 25 Appendix-2 Changes in external force 25 Appendix-3 Critical industry skills 25 Appendix-4 Expected challenges of automotive industry 26 Introduction The report is going to conduct Proton external analysis and the report has been divided into main three parts. The first part will be discuss some background of the company. The secondary part complete external analysis through using PESTEL, SWOT and Porter five forces model. The third and last part...
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...Analysis of Toyota Motor Corporation By: Thembani Nkomo This paper will explore the external and internal environment of Toyota Motor Corporation, and suggest recommendations to sustain its competitive advantage. Analysis of Toyota Motor Corporation by Thembani Nkomo ANALYISIS OF TOYOTA MOTOR CORPORATION TABLE OF CONTENTS 1 COMPANY OVERVIEW 2 EXTERNAL ENVIRONMENT OF THE AUTOMOTIVE INDUSTRY 2.1 Industry Overview and Analysis 2.2 Industry Life Cycle 2.3 Industry Demand Determinants 2.4 Porter’s Five Forces 2.5 Industry Cost Structure Benchmark 2.6 Industry Competitive Landscape 2.7 Major Competitors 2.8 Key Success Factors in Industry 3 INTERNAL ENVIRONMENT OF TOYOTA 3.1 Core Competencies 3.2 Distinct Competency 3.3 SWOT Analysis 3.4 BCG Matrix: Internal Analysis of Toyota Portfolio 3.5 VRIO Framework Analysis 3.6 Toyota’s Efforts in Emerging Economies 3.7 Case Study: Toyota’s Successful Strategy in Indonesia 3.8 Strategic M&A, Partnerships, Joint Ventures, and Alliances 3.9 Analysis of Financial Performance 4 RECOMMENDATIONS 5 APPENDICES 6 REFERENCES Analysis of Toyota Motor Corporation by Thembani Nkomo 1. TOYOTA CORPORATE OVERVIEW: Founded in 1937, Toyota Motor Corporation is a Japanese company that engages in the design, manufacture, assembly, and sale of passenger cars, minivans, commercial vehicles, and related parts and accessories primarily in Japan, North America, Europe, and Asia. Current brands include Toyota,...
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...- Influences PESTEL 2. Industry Sectoral Dynamics - Industry characteristics - Description of the recent sectoral dynamics - Positioning in the sector - Porter 5 forces analysis - Analysis of the competitive position III. Strategic Capacity Analysis 1. Goals and Targets 2. Analysis of possible Alternative IV. Presentation of Alternatives 1. Strategic Business Units = GO GREEN 2. Directions and development methods V. Assessment of Alternatives 1. Cost / Benefit Analysis - Alternatives 2. Implementation Timeline 3. Expected Results VI. References I. Who Are We ? 1. Background Henry Ford founded the Ford Company in 1903. Despite a difficult start, he created 19 new models in the first five years. The company already had an international aspect even then since the rubber is imported from Belgium Congo. Success finally came with the Ford T in 1908, so much that any advertisement was unnecessary. To produce this model, H. Ford instituted the practice of large scale manufacturing of car and management of industrial Work forces. Such method was named after him, Fordism, in 1914. Nowadays, Ford is stretched across six continents though it operates mostly in Europe and North America. Its headquarters are in Michigan. We can also safely state that it is one of the largest automotive manufacturers in the world. It employs around 176000 people. 2. Product line In the automotive industry, the easiest way to do segmentation...
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...Has strategy contributed to BMW’s success in UK’s premium car market? (Word count: 3000) Executive Summary Owing to the ever increasing competition in today’s business environment, strategy plays a very critical role in ensuring the success of a company. This report gives a limelight on the extent to which strategy has contributed to the superiority of BMW in the UK automobile industry. In analysing this, the report will begin with an evaluation of BMW as a premium car manufacturer. The report then employed the use of PESTEL and Porters five forces to analyse the external car industry environment. The internal environment are analysed by use of value chain analysis. Bowman’s Strategy Clock is also explored in understanding the marketing strategy used by BMW Company. Finally, Resource/ competence framework has also been explored in understanding the key competencies and resource capabilities that has enabled the BMW to maintain market leadership position. In compiling this report, major sources of information used were journals, empirical literature and the internet. The findings of this report show that strategy has played a pivot point in BMW’s overall performance. Generally, the report shows that unstable political environment in the UK and the global market is greatly affecting the industry. Moreover, socio-cultural environment greatly affect the industry as consumers are becoming more environment conscious. This...
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...| BMW Strategic Analysis | | | | Management 452.301 | Table of Contents Executive Summary 2 Introduction of Company and Current Situation 3 External Environment Analysis 4 General Environment 4 Industry Environment 6 Competitor Environment 7 Conclusion of External Environment Analysis 8 Internal Analysis 10 VRIN Analysis 10 Financial Analysis 12 Conclusion of Internal Analysis 15 Strategy 16 Identification of Key Problems 20 Recommendations and Implementations 21 References 24 | Executive Summary BMW is known for its manufacturing of premium-brand cars and off-road vehicles under the BMW, MINI, and Rolls-Royce labels, as well as motorcycles under the BMW and Husqvarna brands. Many manufactures such as BMW, Mercedes, and Audi produce cars in foreign markets. The three car makers that are BMW’s main competitors in the luxury auto industry are Lexus, Mercedes-Benz, and Audi. The companies are worried most about the exchange rate fluctuations that threaten their profits if the euro starts appreciating against other currencies. With that, BMW is trying to come out with new technology that keeps them ahead of the competition. To do so, they released what is called Efficient Dynamics to ensure a noticeable reduction of consumption and emissions while simultaneously increasing the performance and driving pleasure of the vehicle (BMW EfficientDynamics). The company has also discovered such items as the BMW ActiveHybrid...
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...Decision Issue Our group conducted an analysis of Hyundai Motor Company to determine whether or not the company should continue to sell their luxury cars under the Hyundai brand, to sell them under a different brand name, or to discontinue certain car lines. After an examination of the US automotive industry and of the Hyundai Motor Company itself, our group focused on three different analysis tools to help answer the strategic decision issue: an RBV analysis, a Value Stick analysis, and Game Theory analysis. Ultimately, we conducted an exhaustive study of the pros and cons of the possible options Hyundai has and made our recommendation. Industry Analysis We are researching Hyundai Motor Company, which operates in the automobile industry. Hyundai’s operations are set in Korea and have been around for 44 years. The automobile industry is dynamic and undergoing multiple changes throughout its landscape, including the bailout of major brands in the US and abroad. By revenue, it is one of the most important economic sectors in the world. The top five car manufacturers are Toyota, GM, Volkswagen, Ford and Hyundai-Kia. The automobile industry has a moderately high threat of substitutes and a low threat of new entrants. Suppliers maintain a low bargaining power, but buyers hold a high bargaining power and the intensity of rivalry among firms is incredibly high. Threat of Substitutes The threat of substitutes for the automobile industry is moderately high. Customers will switch...
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...| BMW Strategic Analysis | | | Amanda King, Zachary Conner, Chris Miller, Sulaiman Alsayyari | Management 452.301 | Table of Contents Executive Summary 2 Introduction of Company and Current Situation 3 External Environment Analysis 4 General Environment 4 Industry Environment 7 Competitor Environment 7 Conclusion of External Environment Analysis 8 Internal Analysis 10 VRIN Analysis 11 Financial Analysis 12 Conclusion of Internal Analysis 16 Strategy 17 Identification of Key Problems 20 Recommendations and Implementations 21 References 25 | Executive Summary BMW is known for its manufacturing of premium-brand cars and off-road vehicles under the BMW, MINI, and Rolls-Royce labels, as well as motorcycles under the BMW and Husqvarna brands. Many manufactures such as BMW, Mercedes, and Audi produce cars in foreign markets. The three car makers that are BMW’s main competitors in the luxury auto industry are Lexus, Mercedes-Benz, and Audi. The companies are worried most about the exchange rate fluctuations that threaten their profits if the euro starts appreciating against other currencies. With that, BMW is trying to come out with new technology that keeps them ahead of the competition. To do so, they released what is called Efficient Dynamics to ensure a noticeable reduction of consumption and emissions while simultaneously increasing the performance and driving pleasure of the vehicle (BMW EfficientDynamics). The company...
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...Automotive Market Structure CADILLAC AUTOMOTIVE Cadillac Automotive is a U.S based automobile manufacturer that manufactures luxury vehicles. The company is owned by General Motors. Cadillac originally used to make carriages. The company sells in more than three dozen countries with its major operations centered in North America. It is known to be the second oldest automobile manufacturer in U.S. after GM and Buick. The industry Cadillac operates in is highly lucrative and money making (SWOT analysis of General Motors, 2013). The luxury cars do not make money by mass production rather by selling on premium prices. Here is the analysis of the industry Cadillac serves in and a discussion of its market structure (Automotive Strategy, Planning & Analysis: IHS Automotive, 2013). MARKET STRUCTURES The market structure tells the way business is done in an industry. The market structure can be of four basic types. A market may have strong government regulations or no government intervention at all. Also the market structures differ on the basis of companies in an industry. Following table describes how automotive industry differs from other industries and what market structure it has. Cadillac Automotive | Oligopoly | Perfect competition | Monopoly | Monopolistic Market Structure | Industry: Automobiles * There are multiple automobile manufacturers * Some of the major players are GM, Ford, Toyota, Honda, Ferrari, Lamborghini, and BMW. | The oligopoly market players may...
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...gasoline cars vehicles to electric vehicles has been for long time a focal point in the industry . The shift wasn't prompt , it was a combination of gradual steps from conventional , hybrids till full electric cars. With increasing innovation and environmental concerns and with the growth of the social responsibility of companies and individuals toward our planet , the EV might cars gain attraction and popularity. Nissan got the signal early and decided to develop its full electrical car as first mover and technology leader supported by the CEO ( Carlos Ghosn ) vision that EV cars will become soon the dominant auto technology. Nissan strategy was to make a significant change in the industry and start pushing for electric cars that are “affordable, cool, attractive and fun to drive.” After years of research and a large R&D investment the result was the Nissan LEAF , A medium sedan 5 seats car boasting features like immediate torque, silent ride, premium performance, lower fuel and maintenance costs. The vehicle was about the size of a Volkswagen Golf or a Renault Megane , It had an 80 kilowatt electric motor with about 110 horsepower powered by lithium battery that can provide 140 km/h speed. Nissan took a very challenging approach to launch the vehicle , for them to secure a good penetration to the European market , Germany should be the gate , if the company can make it in Germany , it will succeed to lay the foundation to dominate the EV cars in Europe. Analysis , External...
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...Abstract The report provides a consolidated preview of the external environment of Ashok Leyland and the Indian automobile industry. This study will take us through the evaluation of external factors using EFE matrix, to the comparison of the company with its competitors (CPM) and study the incentives given by the government to encourage the expansion of the Indian automobile industry. Introduction The Indian Automotive Industry after de-licensing in July 1991 has grown at a spectacular rate on an average of 17% for last few years. The industry has attained a turnover of USD $35.8 billion, (INR 165,000 crores) and an investment of USD 10.9 billion. The industry has provided direct and indirect employment to 13.1 million people. But lately the Indian automobile industry has been going through a low phase since the past 10 months and experts believe that situation is going to sustain in the current financial year that ends in March 2014. Demands continue to remain low as against the expectations of the Indian auto makers, due to the crisis in the economy, increase in fuel prices and loan rates. Until few years ago, this industry boomed with sales but the falling value of Indian rupee is only bringing its depreciation. (Car trade, n.d) The market is divided into four segments namely two-wheelers, three-wheelers, passenger vehicles and commercial vehicles. (Grewal, n.d) Source: Society of Indian Automobile Manufacturers (SIAM) According to the deputy director general of SIAM...
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...strategic Analysis of Pak Suzuki Motor Company. During the project, we have done the detailed study of Pak Suzuki Motor Company Limited like their company profile, mission, vision and corporate values. Then we observe the some of the major products manufactured and assembled by the Pak Suzuki Motor Company limited which includes SWIFT, LIANA, CULTUS, MEHRAN, APV etc… With the help of Internal and External analysis, we have sorted out some of their strengths, weaknesses and the opportunities and threats prevailing in the market. Also the PEST analysis was conducted to observe the external factors that may influence the performance of the company. Further we have developed a marketing mix (product, price, place and promotion) which enable us to form tactics which to be used to make up the strategy that will be aimed at the target market and will help them to achieve their marketing objectives. With the study of Pak Suzuki Motor Company Limited, we have learned that they are doing well in the Pakistani market and are leading market shareholder. They are producing Cars at affordable prices for the low income to middle income people. But they are unable to compete with Corolla and Honda in Luxury and semi-luxury cars. They need product development strategy to follow so they tried to get into the Honda and Corolla market by introducing Suzuki LIANA but that couldn’t make its space. Now they have again tried that by launching Suzuki SWIFT which is a 1300cc fully loaded car. I recommend...
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... Table of Contents Executive Summary 4 Introduction 5 BMW and the Automobile Industry 6 Aspects of the Automobile Industry 6 Historical Background of BMW 6 BMW in the Global Environment 9 General Environment of the Automobile Industry 9 Five Forces of the Automobile Industry 14 Competitive Structure of the Automobile Industry 17 BMW’s Direct Competition 22 BMW’s Resources and Capabilities 25 Tangible Resources 25 Intangible Resources: 28 Capabilities 29 Core Competencies 30 Potential Action Steps for BMW 33 BMW’s Strategy towards Success 37 References 41 Appendices 45 List of Illustrations Figure 1: Report's Course of Action 5 Figure 2: Labour Costs in EU Countries 2005 11 Figure 3: Outcome of General Environment Analysis 14 Figure 4: Evaluation of Porter's Five Forces of Competition 17 Figure 5: Strategic Map 20 Figure 6: Profit Margins 26 Figure 7: SWOT Analysis BMW 2006 33 Executive Summary The following report analyses the automobile operations of the BMW group in regard to its competitive position in the automobile market. BMW is a German premium car manufacturer comprising the three brands BMW, Mini and Rolls-Royce. The analysis of the external environment indicates an attractive but challenging general environment. The industry environment shows low threat of new entrants, low bargaining power of suppliers, high bargaining...
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...production of the Nano from makeshift assembly line at Pantnagar and launched a car in three variants priced between Rs. 123,000 and Rs. 175,000 The Downfall Saga ➢ Tata witnessed a sequential fall in 2010, lowest in November Nano sales was 509 units ➢ Issues like production delays, multiple fire accidents, increasing prices of car, difficulty in getting loan from bank and the stigma attached to buying a cheap car was cited as cause for sales drop. ➢ A car in India was supposed to be a valuable product and Nano being termed as cheap car was not being accepted by middle class. What do they do ? They produce very low cost cars to the indian market. Making cars available to a costumer segment that could previously not afford cars. External Analysis Customer Analysis in the Budget Car Segment Customer Segment |Segment |User Intention | | | |Entry-Compact Car |Lower price, small |47% | Tata Nano, Maruti Alto, Ford | | |cars | |Figo, Maruti WagonR, Hyundai's | | | | |Santro, i10 and Eon and GM's Beat| |Premium-Compact Car |Higher priced, |11% |Maruti Swift, Hyundai i20 and VW | | |probably second car| |Polo...
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