1. Ahmad U3072227
Ario Ardianto Baroto U3088020
Fatima Al Ghardaqa U3035594
Julie Wang U3060588
Tsering Choden U3105935

2. Presentation Outline
 Introduction
 General Environment Analysis
 Industry Environment Analysis
 Competitors Analysis
 Internal Environment Analysis
 SWOT Analysis
 Recommendation
 Conclusion

3. Introduction
 Inception of Toyota – Founded by Kiichiro Toyoda, Japanese
businessman in 1937
 3rd positioned in automotive company in the current market
 Competitors of Toyota - General Motors and Ford in United
States and Honda in Japan.
 Sale of Vehicle by unit- 8.871 million units
 Net Income earned in 2013 - Yen 962.1 billion

4. General Environment Analysis
 The general environment analysis process has four steps:
Scanning, monitoring, forecasting and assessing (Hanson
et el. 2011).
 Has six segments:
 Demographic: Toyota faces a decreasing population in
Japan (-0.1%)
 Macroeconomic: -Interest rates, exchange rates &
inflation. Rise in Yen makes Japan a high cost production
location & requires Toyota to move production overseas

5. General Environment Analysis
 Political/Legal: - Laws enacted in some countries to reduce Cos
create challenges to Toyota.
 Socio-cultural: - Changes in values and preferences of customers and
the society at large provides both threats and opportunities.
 Technological: - There is a technological shift taking place in the
automobile industry. while Toyota continues to stick with hybrid
technology, other companies (such as GM with the Chevy Volt) are
starting to introduce all electric vehicles.
 Global: - The move toward the globalization of markets requires
Toyota to become more of a global company.

6. The Four Characteristics of global economy
1. The economic integration
2. The capital movements
3. Production has no correlation to the employment
4. The internet

7. Porter’s Five Competitive Forces

8. Competitive environment analysis
9.60%
7.60%
7.00%5.90%5.30%
5.10%
4.80%
3.10%
2.40%
2.30%
Auto Industry Market Share in 2013
Toyota
Volkswagen
Ford
Chevrolet
Hyundai
Nissan
Honda
Kia
Renault
Fiat

9. Net Income Comparison
20529
18950 18994 18584
1082 1550
3418
6380
2717
6557
20222
5664
0
5000
10000
15000
20000
25000
2009 2010 2011 2012
M
i
l
l
i
o
n
s
Toyota
Volkswagen
Ford

10. Contrast of Sale
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2009 2010 2011 2012
T
h
o
u
s
a
n
d
s
Toyota
Volkswagen
Ford

11. Internal Environment Analysis
To attract & attain customers with high-valued
products & services & the most satisfying ownership
experience in America
To be the most successful & respected car
company in America
World domination with regard to car supply.
The company seeks to achieve market leadership by
delivering value to customers & providing high quality
vehicles

12. Internal Environment Analysis
CORE COMPETENCIES
Produce
- What is needed
- In the amount that is needed
Total quality control
All workers to meet customers’ needs
Involve all workers in the company
(BEING INCLUSIVE)
- To achieve total effectiveness of
the production system
- To ensure total productive
maintenance
Computer integrated manufacturing
to include:
- Design
- Production
- Distribution
- After sales service
- Support in the field
- Use computers & IT

13. Internal Environment Analysis
VALUE CHAIN OF TOYOTA1.Efficient & effective marketing and sales service
a. Qualified staff
b. Marketing program (Oh What a Feeling)
2. Supply after sales service
a. handle complaints & provide solutions
b. provide sales training
3. Efficient production method
a. Toyota has quality instruments to assemble & tune new car engines
b. Has an effective method of stopping work if there is a problem – therefore there
is no poor quality
4. Upright inbound logistics ensures:
a. The clients’ demands are met
b. therefore there is no storage costs or wastage do to lack of demand
5. Good accessibility:
a. Toyota manages its own showrooms in all countries
b. Toyota does not outsource its services
c. the products are easily accessible & their values are not inflated.

14. SWOT Analysis

15. Recommendation
Business level strategy >>
 Focus on technology and innovation of
Hybrid vehicles as future
differentiation strategy
 Develop fuel efficient, compact vehicles
for emerging markets
Functional level strategy >>
 Operation strategy : Focus on product quality control, continuous
learning and improvement on manufacturing systems for efficiency
 Marketing strategy : Reinforce Toyota brand image to restore
reputation and build brand loyalty to increase value of Toyota

16. Recommendation
Enhance market share >>
 Develop presence in emerging markets; China and India
 Concentrate on USA market by Americanize the design,
production and marketing
 Invest and expand in European market
 Continuous learning and improvement of Toyota product and process
through technology and innovation
 Increase customer responsiveness; identify and satisfy needs,
improve support and after sale services

17. Conclusion
 Toyota has sources of strong competitive advantages in global
automotive industry, such as TPM, value chain, strong brand,
wide product offering and hybrid vehicles
 Major recalls, economic crisis, natural disasters and intense
global competition have posed serious challenge for Toyota
 Growing emerging markets and shifting customers demands
offer opportunities for Toyota to attain superior profitability
and growth
 Toyota must sustain its competitive advantages to retain its
position and achieve future success

18. Thank You