Opportunities for Toyota

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There are a few different opportunities facing Toyota. The company is a power in the emerging hybrid segment of the market. The company appears to have first mover advantage with the Prius, a hybrid that offers 38 km/l fuel efficiency, a new standard (2009 Annual Report). The price of gasoline is highly volatile, and consumers are beginning to re-evaluate their gasoline usage, as well as their environmental footprint. While this is just a small trend right now, there is the opportunity for it to grow over the coming decade or two, since the concept is popular with the millennial generation, as well as anybody who must make smart decisions with respect to their fuel usage. Key to exploiting this opportunity will be to continually improve the company's hybrid technology so that Toyota maintains its technological leadership. Another key will be to leverage the first-mover advantage and build the Prius brand to the point where it can be extended to other types of vehicles and is the default hybrid of choice for consumers. Emerging markets, particularly China, represent another major opportunity for Toyota. The company is responding by increasing capacity in key growth markets, China included (Hitokoto, 2010). Brazil and India have also been targeted by the company for growth. The Chinese market is believed by Toyota to have the potential to grow to the size of the US market, so the company's growth strategy over the next ten years is focused on taking advantage of this

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