Case Study Of Toyota Prius

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1. What are the problems in this case? The problem in this case is weather are not it is the correct decision to accelerate the launch of the Toyota Prius a car built with the new hybrid technology. The TMC (Toyota Motor Company) identified an untapped market in the US in the 1970’s when they saw there was a demand for a small fuel efficient car due to the raising gas prices. This was a market the “Big Three” were not equipped to meet. Toyota and other Japanese car manufactures were able to take advantage of this market need and obtain top positions in this market. They were able to survive and succeed in this market by offering more reliable cars than the “Big Three” and operating efficient plants to control costs. By the 90’s there was…show more content…
By the Mid 90’s Toyota was again faced with issues in the market with the increased competition and Toyota being criticized for creating copies of other popular cars on the market. GM had created a smaller fuel efficient car brand Saturn that was directly competing with Toyota’s products. Honda had created a new market for themselves with the creation of two…show more content…
The product that Toyota was introducing to the consumer was not ground breaking and did not set itself apart from any other product on the market, not only did it not set itself apart it was producing vehicles that closely resembled the competition. Toyota was losing their competitive edge of reliability because other companies were able to replicate their efficient production and reliability and have the same success they Toyota previously held. The customer base for Toyota was not growing and more of a following due to loyalty to their past performance. The company had also lost its innovative edge and with this was losing its market share. I see due to Toyota’s lack of initiative by not moving more manufacturing to the US and innovation as an opportunity to enter the small car market that was previously dominated by the Japanese manufactures. With all this said Toyota still had a great reputation for producing a very reliable product, with this reputation Toyota could be one change away from becoming a major player
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