Porter’s Five Forces
Bargaining Power of Supplier (Moderate)
Toyota has different supplier for different parts of the automobile. Some of the suppliers are:
- KEIPER: a supplier of rear seat assembly locks
- TAC Manufacturing: a supplier for shift lever knobs
- Tenneco: a supplier of exhaust components
- Bridgestone: a supplier of tires
- Samsung Electronics: creating a car mode App The suppliers for Toyota play a vital role in production. But, there are moderate population of suppliers and high overall supply. The limited population of suppliers can affect the production of Toyota. Because of the limited population, the bargaining power of supplier is high, but the high availability of supply used for manufacturing toyota’s products weakens the suppliers’ power. Thus, the bargaining power of supplier is moderate.
Bargaining Power of Buyer (High)
Toyota’s aim is to serve the middle income customer because the cars that they produce are affordable. The buyer purchase small volume of the products because cars are expensive. Because its aim is to serve middle income customers, toyota’s have a lot of buyer because the population of middle income customers is more than high income customers. The product is worthy because the quality is good, the price is affordable, toyota has its own mantainance service and the secondhand’s price is good.
The switching costs is low because customers can easily change from toyota to competing firms at no extra cost. The customers have accurate and high quality of information from companies websites which make them compare toyota’s products with others product. The subsitute of the products are moderate. Thus, the bargaining power of buyer is high.

Threat of Subsitute Products (High) There are a lot of substitutes available. The subsitutes to Toyota products are Honda, Volkswagen,Ford and etc. Products |