Toyota Prius Case Study

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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…show more content…
In 1994 Toyota was the world’s third largest seller of vehicles (at 4,580,000 units), following GM (at 8,420,000 units) and Ford (at 6,800,000 units) respectively. TMC’s Total Market Share and Total Retail Sales in 1994 are as follow: TOYOTA (from Exhibits 2 & 3) Region Total Market Share (percentage) Total Retail Sales 1. Japan 33.7 % 1,386,000 of 4.2 million 2. Western Europe 2.6 % 309,400 of 11.9 million 3. United States 8.5 % 765,000 of 9 Million Competition is good for producers but better for consumers, more competition in the market means more: ideas, channels of distribution, market stability and competitive (lower) prices for consumers. Ultimately, healthy competition forces producers to offer better products and services at lower prices. Automobiles provide people with “…aspirational value in addition to a basic mode of transportation…” (Reinhardt, Yao & Egawa, 2006) consumers make purchasing “decision based on the styling, color, and concept of the cars in addition to functions and pricing” (Reinhardt, Yao & Egawa, 2006). So far, TMC has been trying to catch up with Honda and Nissan in the ‘innovative’ department. Let’s not forget the criticism the company previously faced for offering its customers “…proliferation of look-alike cars…and following rather than setting a trend” (Reinhardt, Yao & Egawa, 2006).Since, Mr.
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