...Toyota Case Toyota Motor Corp. (TMC) Should the new Toyota president accelerate the launch scheduled for the Toyota Prius? The plan to introduce the car “at the end of 1998 with expected production of 1000 units per month…” (Reinhardt, Yao & Egawa, 2006) is an extremely aggressive and ambitious goal; but, is it in TMC’s best interest to speed up the planned launch? There is no doubt that the new president (Hiroshi Okuda) is under extreme pressure to compete in a global market, he believes the company should radically alter its image to attract new customers and gain a competitive advantage while systematically facilitating environmentally-socially responsible practices. It may very well be that TMC should push for a faster launch; but, there are a few things we must take into consideration before we encourage our Toyota team to make any hasty changes. The auto mobile industry faces many challenges (as most industries do) however; this industry is unique in its own way. The industries high barriers to entry, high capital cost, and unique manufacturing facilities make managerial mistakes extremely costly (complete failure is not easily corrected, much less when you change the economies of scale platform). Before making any drastic changes to the manufacturing process, TMC must first analyze its: competition, market, government regulations, facility capabilities, management practices and overall responsibilities (responsibilities include anything from: reaching Goals...
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...Toyota Hybrid cars. Toyota Motor Corporation is a famous Japanese multinational corporation, and is considered the world’s second largest automaker of automobiles, trucks, buses, robots, and providing financial services. When Toyota and other Japanese carmakers entered the American market, they were not considered as a threat to the American auto industry because it was believed their cars had no appeal to American consumers However, in the 1970s, due to several problems like environmental regulations, and quality control issues with American cars, a good number of American car owners began searching for alternatives to poorly made American cars. In response to these changes, Toyota and other Japanese carmakers aggressively marketed their cars to Americans as being fuel-efficient, environmentally friendly, and having better build quality than American cars. In addition, Toyota marketed their cars with commercials involving young Toyota drivers jumping in the air. As a result, the Japanese’s marketing campaign along with continuing problems from the Big Three auto manufacturers, allowed import cars to make up about 20 percent of the US car market by 1980. Stage1 General Motors, Ford and Daimler-Chrysler focused in the late 1990s on mergers and acquisitions for improving their business positions to meet future challenges. Toyota, meanwhile, centered its business strategy on technological innovation and persistent environmental product development. The price of oil was not...
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...The Toyota Prius is a hybrid electric car which is one of the first of its kind to be mass produced and marketed. The unique feature of the Prius is its Hybrid Synergy Drive which makes use of both the traditional petrol driven engine and an electric motor. This electric motor allows the Prius to switch off its petrol engine when stationary; and recharge the electric motor using the kinetic energy produced when braking. This not only conserves a lot of energy and petrol, and also allows for a smoother drive in the city areas which tend to have greater road congestion. Toyota’s largest target market would be educated working adults in developed urbanised countries especially in the West where there is a subculture of environmental concerns and issues which are relatively more active compared with the rest of the world. Thus the educated working class in these countries would be attracted to the Prius’ energy and fuel savings, and automatic battery recharging which would not only be a lot more environmentally friendly, but would ensure a more smoothly-powered ride to work in a congested city morning. Furthermore, the affordability of the Prius as compared to other Toyota vehicles coupled with even greater cost savings on fuel – cuts fuel consumption by 40% - is an added incentive for these environmentally conscious consumers as they might worry that specially designed green technology might be expensive One of the factors that could motivate these consumers to purchase the...
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...Question 1 (20 marks) Identify four actors in the microenvironment that affect the introduction and sale of the Toyota Prius and explain the role each of these actors played in Toyota’s strategy. A company’s microenvironment consists of the actors close to the company that affect its ability to serve its customers. It is made up of the company, suppliers, marketing intermediaries, consumer markets, competitors and publics. The following are four actors that affect the introduction and sale of the Toyota Prius: Customers: Customers are the most important actors in the company’s microenvironment. Without customers, there would be no company. Toyota studied the consumer market and came up with a successful target market strategy. Their targeting strategy was one of the main reasons for the Prius’ success. In the beginning, Toyota focused on the early adapters and innovators who were most likely techies. Which, as it turned out, was completely right. Techies were attracted to the advance technology and were even able to modify the computer systems. Also, the tech savvy customers tend to be environmentally conscience, which the Prius is known for. The second generation Prius was redesigned to have a broadened market focus. It had improved performance, power increase, new sleek design, and seven colors. It also featured a roomy interior, leg room, and storage space. It also included features found in luxury cards such as one touch button start and seven-inch touch screen...
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...Did you know that all the companies in America have something in common? They are all operating in an environment of forces that create both threats and opportunities for their businesses. These environmental forces, which make up something known as the "macroenvironment", include: demographic, economic, natural, technology, political and cultural. Since the macroenvironment is generally uncontrollable, businesses often must find ways to adapt to the constant changes. For example, over the past few years, the auto industry has been affected tremendously by changes in the technology, natural, and political environments and therefore forced to change their marketing strategies. The Technology Environment Kotler identifies the technology environment as the most powerful force affecting and shaping the future (83). The environment consists of: industrial productivity, new manufacturing processes, new products and services of competitors, new products and services of supply chain partners, and any new technology that could impact a company (Environmental Scanning). Technology has been responsible for developments such as the internet, computers, laser surgery, organ transplants, antibiotics and more (Kotler, 83). While advances in technologies are creating new markets and opportunities they are also replacing older technologies. Companies that do not keep up with these changes will find their products or services become obsolete and not up-to-date with the consumer buying behaviors...
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...Launch of the Ford Fiesta Diesel: The World's Most Efficient Car In this case, the issue is that Ford launched an engine that use Diesel, the car itself has many potentials (lowest CO2) and follows all emission‘s standards and regulations. It encounter a positive reaction in Europe (Bestselling in Britain and sales has gone up by 40% the previous year) and Asia but it is not the case in the USA. Indeed, consumers still have a bad image of Diesel, in their mind Diesel is noisy, smelly and smoky. This bad perception of the fuel negatively affected the sales of one of the most fuel efficient car especially during an essential economic deterioration. Therefore Ford decided not to launch the car in the USA, but they argue that it it’s due to the cost of exporting from Europe but also the uncertain demand. Ford and also other carmakers are facing some challenges due to the elusive price of fuel but also the oil decline. Ford is mostly affected by people’s perception of Diesel, but the fuel represent 50% of sales in Europe due to its expensive price. Carmakers has the choice between Gasoline engines, Diesel engines or Hybrid Engines. Gasoline engine, are not the most wanted, indeed people prefer electric cars .But due to oil Embargo in 1973, it increase the price of gasoline thus made it more attractive .CAFE installed some regulations. Oil price decrease enabling carmakers to build better car and meet CAFÉ regulations but at the crises carmakers realize that it was...
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...Friedman, the logical step from CSR to socialism means that companies should not engage in CSR. For me, it means that now that the companies are making CSR claims all over the place, socialists might want to point out the ideological dilemmas of this practice. As the power of big corporations has become increasingly evident, their legitimacy may erode if they stop making claims about their social responsibility. The dilemma is that if and when they continue making these claims, they implicitly accept that capitalist corporation is no longer immune to social and moral claims by others. 5) Explain the safety concerns in the 2010 Toyota Prius and Lexus Hs250h models. Are the design engineers morally responsible for the resulting accidents? Why or why not? Toyota is to recall almost half a million hybrid cars worldwide, including 8,500 of its Prius model in the UK, in the latest blow to the...
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...Microeconomics ECO 365 David Norcross April 13, 2015 Current Market Conditions Competitive Analysis In this paper, Team A is participating in a strategic planning group creating a new product at General Motors. The following is a competitive market analysis on the potential of our new 2016 Chevy Volt’s success. We will be focusing on our competitor Toyota and their Prius lineup. Additionally, we will summarize our target consumer and current market conditions. Then we will cover variables that weigh on supply, demand, and equilibrium prices. Next, we will consider the pros and cons our firm faces while identifying the effect on our competitiveness and long-term profitability. Then, we will evaluate factors that influence fixed and variable costs. Lastly, we will provide recommendations on how GM can grow their profits and increase their competiveness. The Product The Chevy Volt was a concept designed by Bob Lutz Jon Lauckner of General Motors ‘GM’ in 2006 to overcome many of the limitations of pure electric vehicles while retaining many of the beneficial elements. The purpose of this car was to leap-frog the technology of the Prius hybrid. The theory of this concept was a car that would be able to drive on electricity for the first forty miles, and then a generator would run gasoline to extend the range of the car. In 2010, the production version was able to achieve 35 miles on electric and average 37 miles per gallon for an additional 342 miles (King, 2013, p. 1). This fall...
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...Assignment 1: Prius: Leading a Wave of Hybrids Question 1 (20 marks) Identify four actors in the microenvironment that affect the introduction and sale of the Toyota Prius and explain the role each of these actors played in Toyota’s strategy. A company’s microenvironment consists of the actors close to the company that affect its ability to serve its customers. It is made up of the company, suppliers, marketing intermediaries, consumer markets, competitors and publics. The following are four actors that affect the introduction and sale of the Toyota Prius: Customers: Customers are the most important actors in the company’s microenvironment. Without customers, there would be no company. Toyota studied the consumer market and came up with a successful target market strategy. Their targeting strategy was one of the main reasons for the Prius’ success. In the beginning, Toyota focused on the early adapters and innovators who were most likely techies. Which, as it turned out, was completely right. Techies were attracted to the advance technology and were even able to modify the computer systems. Also, the tech savvy customers tend to be environmentally conscience, which the Prius is known for. The second generation Prius was redesigned to have a broadened market focus. It had improved performance, power increase, new sleek design, and seven colors. It also featured a roomy interior, leg room, and storage space. It also included features found in luxury cards such as...
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...me: First, I believe that all predictions are silly, more about marketing than actually trying to figure out what comes next. Second, I am a fan of sleek, go-fast machines, preferably beautiful ones from Italy, Germany or the U.K. Thus, I am going to break with both of these traditions to make a forecast about the future of the automotive industry. Gasoline-powered cars are toast. They are over, finito, kaput, the walking dead who have not yet realized they are goners. It is highly likely that in your lifetime, you will no longer see the mass manufacturing of gasoline-powered automobiles. My guess is that by 2035, if not sooner, the majority of automobiles sold in the U.S. and Europe will no longer be gasoline-powered. Tesla and Toyota have been the two companies driving much of the technology changes for clean alternatives to gas-powered drivetrains. What Tesla has done with its “Ludicrous mode” upgrade for the Model S is figure out how to put almost all of the power in its system to all four wheels at once without melting its engine-management components. The Tesla P85D with the complete 90kWh “ludicrous” upgrade costs about $100,000. The upgrade gives it a 0 to 60 mph time of 2.8 seconds. To put that into context, to get that sort of acceleration from a car previously required a Porsche 918 Spyder (0 to 60 in 2.3 seconds) or a Bugatti Veyron (2.6 seconds) or a Koenigsegg One (2.5 seconds). They each cost $1.1 million, $2.9 million and $3.8 million, respectively...
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...trade, production, and supply in your analysis. 5. Explain what impact do you think these cars will have on our economy? Consider the following issues in your analysis: consumer buying, sustainability, recycling, and fuel economy. Abstract “The first hybrid gas-electric car in the United States, the original Honda Insight, reported its first 17 sales in December 1999. One decade and 1.5 million hybrids later, the auto industry is ready to embrace hybrids and other green cars like never before.” (Berman, 2009) Hybrid cars are extremely popular internationally and it’s easy to see why. “Hybrid cars complement gas engines with electric motors to improve gas mileage or to increase power through the use of a combined-propulsion system. Toyota and Honda are both major players in the hybrid space, but just about every other automaker is working on a hybrid model.” (Cunningham, 2014) The hybrids with high-end proficiency have far superior fuel efficiency than conventional gas-powered vehicles. Hybrids of today have ranges of greater than 400 miles per tank. There are two main types; normal hybrid cars, and full hybrid cars. Normal hybrid cars...
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...Tutor______________________ Final Grade_________ Date _______________ ANALYSING THE IMPACT OF THE INTRODUCTION OF HYBRID CARS ON THE AUTOMOBILE INDUSTRY IN THE UK Abstract Hybrid cars are an emerging aspect in contemporary automobile technology. Hybrid cars have existed for over one hundred years. However the benefits from such cars have not been acknowledged for all this time until in recent years. Generally speaking a hybrid car is one which uses two power engines to pull the vehicle. The introduction of hybrid cars has been hailed greatly, mostly by international organisations, governments, nongovernmental organisations (NGOs,) and individuals. Many car manufacturers are continuously getting involved with the production of hybrid cars with Toyota being the highest producer of the cars and having the highest sales [1]. These cars are most used in Europe. Hybrid cars were introduced to combat the effects of the gasoline cars vis-a-vis environmental concerns, but also for political reasons. Research shows that the carbon emission from petrol and diesel cars has a depleting effect o n the ozone layer (a gas...
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...& Yeh, 2007). So which hybrid cars have the best technology, manufacturing, price, and impact on our environment? According to Kelley Blue Book, as of June 2012, the highest consumer rated hybrids are listed below along with their scores: 1. 2012 Toyota Prius C 9.7 / 10 2. 2011 BMW X6 9.5 / 10 3. 2011 Mercedes-Benz S-Class 9.4 / 10 4. 2011 Lincoln MKZ 9.2 / 10 5. 2011 Honda CR-Z 9.2 / 10 (Listing provided by Kelley Blue Book, www.kbb.com, 2012) “The 2012 Toyota Prius C is the number one choice of consumers. The biggest advantages begin with the low starting price below $20,000. It has an augmented body and great battery and powertrain position. It is great for fuel economy as it allows better than 50 miles per gallon. The size of this vehicle is also admirable because it is convenient when trying to find a place to park. The gas engine is conjoined with an electric motor and the system also holds braking energy in a nickel metal hydride battery and uses it to power the 45-kilowatt electric motor, which can operate the car by itself under low acceleration. The car's gas engine is a 1.5-liter four-cylinder and the combined achievement of the gas engine and electric motor in the Prius C is 99 horsepower. Not a substantially high number but good enough to keep up with other similar vehicles. This vehicle is the first in its brand to...
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...motives influenced desire for green products. Activating status motives led people to choose green products over more luxurious nongreen products. Supporting the notion that altruism signals one’s willingness and ability to incur costs for others’ benefit, status motives increased desire for green products when shopping in public (but not private) and when green products cost more (but not less) than nongreen products. Findings suggest that status competition can be used to promote proenvironmental behavior. Keywords: altruism, environmental conservation, costly signaling, status competition, consumer behavior ported that the number one reason for purchasing the car is because it “makes a statement about me.” What statement does the Prius make? “It shows the world that its owner cares” (Maynard, 2007). At first blush it may seem puzzling why individuals would pay a premium to forgo luxury or comfort for the sake of displaying that they care. The current research, however, suggests that there may be important links between displays of caring, environmental behaviors, and competition for status. Whereas traditional approaches associate status with preferences for...
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...Fernan Andres Marketing 371.4 Professor Esther L. Mead December 8th, 2008 Jesse Fernandez Bradley May Markus Neumeier Lais Fabricio H Y B R I D V E H I C L ES TH E IN N O VA TI ON TABLE OF CONTENTS Executive Summary Introduction What is a Hybrid Vehicle a. Brief History and Explanation b. How it Works c. Recent Popularity and Expected Future Sales Demographics a. Age b. Gender c. Income d. Ethnicity Psychographics Green Marketing Strategies The Decision Making Process a. About the Process b. Problem Recognition c. Information Search d. Evaluation of Alternatives e. Product Choice and Outcome f. Conclusion Diffusion of Innovation a. About the Process b. Compatibility c. Trialability d. Complexity e. Observability f. Relative advantage g. Prediction of Future Diffusion Conclusion Works Cited 2 3 4 6 9 10 12 16 20 23 1 EXECUTIVE SUMMARY This is a comprehensive report that discusses the innovation of the fuel efficient and environmentally friendly hybrid vehicle, which types of consumers purchase them and suggests certain Consumer Behavior concepts that explain why they are becoming so popular. The report begins with a brief explanation of the vehicles history along with a short explanation of how the vehicle operates. It also explains how the impacts of our economy and the environment have created a new wave of popularity and demand for the hybrid. It then transitions into the demographics and psychographics segment of the hybrid target market: age...
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