Case Study Toyota Motor Corporation Australia

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ASSESSMENT 3: Evaluation of business case Introduction and Summary of case study Introduction This report will critically examine a particular case of Toyota Motor Corporation Australia. The report provides a brief summary of the study and aims to identify and apply a set of criteria to evaluate Toyota’s possible decision in the adverse external environment, as well as make recommendations for a course of action in short-term and long-term based on the analysis of the external environment, the market and the industry. Summary Toyota Australia, one of the oversea subsidiaries of Toyota Motor Corporation, was founded in 1958 in Port Melbourne, Victoria. It started from assembling vehicles, producing engines and body panels and gradually expanded its operation to exporting and manufacturing new models. Finally, the local operations were unified as Toyota Motor Corporation Australia in 1998. Toyota appeared to be a local market leader for the first time in 1991 and remained top market share in Australia for 11 years continuously since 2003. Since the domestic market was thin, Toyota followed a three-pronged strategy that manufacturing vehicles domestically, importing some components from cheaper sources and exporting about 70% of its total production in order to control the cost and achieve the profit. However, the growingly adverse external environment, including the competitive fragmented market structure because of Australia’s low-tariff barriers, structural changes and
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