Toyota Five Forces Analysis

Growth in urbanization and middle class status that are thriving to own their own cars which increase the sales of affordable priced vehicles.

Today, Toyota is the world's third largest manufacturer of automobiles in terms of both unit sales and net sales. It is also the largest Japanese automotive manufacturer, producing more than 5.5 million vehicles per year, equivalent to one every six seconds. See Appendix 1 for a list of its guiding principles. Appendix 2 depicts excerpts from the company’s 2000 annual report showing their main goals for that year. The company has 12 manufacturing plants in Japan and approximately 54 manufacturing companies in 27 countries throughout the world. These plants produce vehicles and components under the Lexus and Toyota brand names and employ about one quarter of a million people worldwide. In total Toyota vehicles are marketed and sold in more than 160 countries and regions with the automotive business, including sales and finance of the vehicles, accounting for more than 90% of the company's total sales. Appendix 3 shows worldwide sales and appendix 4 shows the models produced in North American Toyota plants. North Americanization of Toyota Since the late 1980’s Toyota had made several moves that showed their commitment to what management called the North Americanization of the company. The idea was to increase car sales in the lucrative North American market by also introducing manufacturing plants that produced parts and assembled whole vehicles for

Global competition in the industry: There are many vehicle manufacturers throughout the world. A few common vehicles seen in my state are GM, Chrysler, Lexus, VW, Honda, Toyota, Ford, and Jeep. Each company tries to stay ahead of the rest. Toyota, based in Japan, for example was one of the first businesses to introduce hybrid vehicles. This was a direct result of the oil embargo. After having three oil shortages automobile manufacturers are creating more fuel efficient, environmentally friendly products.

Toyota Motors Company is multinational Japanese vehicle producer, an enterprise that has it 's headquartered at Toyota, Aichi. Toyota Motors are the biggest world 's producer of the autos about the statistics of 2013 by the quantity of vehicles. Toyota was additionally the greatest maker of the autos in 2012 and has been the initial a car producer that delivered ten million vehicles for each year. It is likewise recorded the most significant assembling organization in Japan of the market capitalization and income. The engines business delivers its vehicles

For more than 50 years, Toyota Motor Corporation has been one of the world’s leading manufacturers of motor vehicles in the United States. It was born a Japanese company in 1935 and came to America in 1957. Now headquartered in Toyota City, Japan, it employs more than 300 thousand employees globally (Toyota Motor Corporation Company Profile, 2012). In addition Toyota is a global marketing organization. It strategically operates primarily through Japan, Asia, Europe, and North America; but its vehicles are sold in more than 170 countries and regions across the globe (Toyota Motor Corporation Company Profile, 2012). The Toyota brand is traditionally defined by brand attributes such as global leadership, innovation,

Toyota is a leading company, and for over 70 years. It has been expanding business all over the world and

Since Henry Ford invented the mass production techniques that made cars affordable to the public, the United State 's economy has been dramatically influenced by this key component in its affluence. Exponentially, jobs were created because the auto business grew. Employees were needed for the constantly growing assembly lines. Consequently, Ford 's model Ts became the primary preferred, affordable, mass manufactured cars. (Davis, 2012). For more than a century, the United States ' automotive industry constantly had a large impact on the national economy. The quantity of cars sold annually has always been a reliable indicator of the nation 's economic well-being. Thus, once the recession hit in 2008, automotive sales declined sharply, indicating the decrease in customer purchase power. Environmental challenges impacting the American automotive industry consist of, yet not limited to, fierce global competition, vigorous technological advancements race, emissions and governmental approach toward a cleaner environment and, finally, customer satisfaction of the American product.

This essay seeks to analyse the environmental challenges facing the American auto industry. I will examine the global competition, new technologies for automobile powering, the effects of emissions, and customer opinion about the industry in the following paragraphs.

Toyota advances the United States in motor vehicle production because the country has devised the proper strategies in importing valuable technologies for manufacturing; they have excelled in building the appropriate labor pool; along with skilled management professionals, as they have marketed their products successfully in the home market for Japanese transportation needs.

Toyota Motor Corporation is one of the most important automaker that has been operational since 1973, based in Japan. The company has gone global and their operations are massive such that it trades in the New York Stock Exchange (NYSE). The company started as a department of the human resources that used to employ 317,734, before it become the biggest automobile due to the huge production that it used to make from the huge labour. It was until the operations were now very stable that the automaker became globally known and being the largest conglomerate in the world. Toyota was able to attain a high number of customers who were

Increasing globalization in the automotive industry is changing the way of traditional partnerships. Ten years ago, it was questionable to pursue business in markets such as India and China because political and business conditions were not conducive to direct foreign investment (Emerging Markets, Emerging Opportunities, 2012).As a result, many automotive

Currently, the automotive industry within the United States is going through major changes and an in-depth overhaul. The demand for smaller more fuel efficient automobiles that has been brought on due to ever increasing fuel costs is the driving factor for these changes of dynamics in production. The continually rising fuel costs are not the only driving force in the changes of demand by the American people. People are also much more environmentally friendly which has recently been a steering force for American consumers away from the traditionally owned pick-up trucks and sport utility vehicles. American manufacturers have also been able to improve the market and its structure through technology such as electric cars and hybrid technology, which are proving to be factors in the changing and evolution of the automotive industry landscape (Wayland, 2013).

Automotive Industry Most people drive a car every day, some have driven one their whole life, but what do we know of the automotive industry? It will be the goal of this paper to discuss four different environment challenges of the automotive industry. What is the global competitiveness of the auto industry? What new technologies are coming out to push the industry into a newer and newer high-tech world? Do vehicles cause environmental concerns, and what does the government have to say about it? What are the opinions of the consumers about the vehicles they buy? What is the global competitiveness of the auto industry? There are six main manufactures of vehicles today. The six main manufactures are Toyota, Volkswagen, Daimler, Ford, Honda, GM. The fight is real, in one article the writer says this, “Japanese automakers Toyota (TM) and Honda (HMC) have among the highest margins in the business at 13.8% and 13.1%, respectively. In contrast, General Motors (GM) has a relatively lower margin of 8.5%. Ford (F) has an EBITDA margin of 8.2%.” (Kallstrom) These margins of profit are where there at because of competition. Kallstrom later writes competition makes it difficult to pass the raw material prices onto the customer. Also, with every changing standards on safety and emissions auto industries need to stay up to date to say in the game. What new technologies are in the automotive industry? In Forbes magazine an article was written about the next big advancements in car

The environmental impact of automobiles is becoming a major topic for the manufacturers. New regulations have been created in order to enforce manufacturers to make automobiles that cause less of an impact. These regulations resulted in an increased price for the manufacturers and the consumers. The strict standards have resulted in higher priced automobiles than one would expect (Furth, 2016). With the enhancements made in technology, one would expect the price of automobiles to decrease, yet this is not the case due to the impact of the regulations. The Environmental Protection Agency (EPA) states that automobiles made after 2009 will have a higher price than previous automobiles because of the new regulations that were put in place (Furth, 2016). However, this belief has led to conflicts between academic critics and the EPA (Furth, 2016). Further research is required to determine if the higher costs of automobiles is solely caused by the regulations that are being imposed or if there is another cause. Either way, the price of automobiles has increased in the last several years and this can be problematic for any company in the automobile industry, but especially for newer competitors like Tesla.

Toyota is a key player in global automotive market. Its structure constitutes if various production plants in different locations and a very strong branding which helps it capture a major market share. Like other enterprises, Toyota has several strengths and weakness which makes it what it is now. Toyota heavily invests in Research and development which helps it come up reputable product line which is spread out throughout the world because of its strengthening global distribution network however its recent product recalling, loose grip in key geographic areas and wrong allocation of resources shows that even a strong brand like Toyota has its weaknesses.