Toyota_Presentation

TOYOTA MOTOR CORPORATIONDriving Strategic Changes.

FANTASTICFIVE +1STRATEGISTS

TOYOTA MOTOR CORPORATION


AGENDA

Introduction of Company

External Analysis

Internal Analysis

Strategic Challenges

Strategic Recommendations

TOYOTA MOTOR CORPORATION FANTASTICFIVE +1STRATEGISTS

OBJECTIVE“Provide an in-depth analysis of TOYOTA and its external environment

and propose a set of strategic recommendations that will drive

success.”


Founded in August 1937

World’s Largest Automaker in 2012

338,875 Employees Worldwide

540 Subsidiaries

220 Affiliates



EXTERNAL ANALYSIS

• High buyer sensitivity

• Low cost of switching to another brand

• Industry is dependent on customer preference



PORTER’S 5 FORCES

POLITICALSUPPLIER’S POWER

BUYER’S POWER

THREAT OF NEW ENTRANTS

THREAT OF SUBSTITUTES

INDUSTRY RIVALRY

• Price of manufacturing material fluctuates

• Companies rely on different types of material

• Large number of suppliers

• High start-up capital required

• Products differentiated by engineering quality

• Possibility of retaliation by existing companies• Many alternative transportation methods

• New alternatives such as Uber

WEAK

STRONG

WEAK

MEDIUM

STRONG


COMPETITOR ANALYSIS

CHEVROLET VOLT FORD FOCUS

World’s Largest Automaker

Global Revenue: $156 B

‘One Ford’ Initiative

Domestic Revenue: $13 B



INTERNAL ANALYSIS

1. Customer First

2. Respect for People

3. International Focus

4. Continuous Improvement and Innovation


VISION

“Most respected and admired company.”

MISSION

“We deliver outstanding automobile products and services to our customers, and enrich

our community, partners and environment.”

4 CORE VALUES



TOYOTA’s STRATEGY

DUAL ADVANTAGE: Low Cost + Differentiation

BRAND IMAGE: Durable and High-Quality Cars

TOYOTA PRODUCTION SYSTEM (TPS): Efficient Manufac-turing



FINANCIAL ANALYSIS


FINANCIAL ANALYSIS

2010 2011 2012 2013 2014

0

5

10

15

20

25

16.72

11.52

2010 2011 2012 2013 2014

0

5

10

15

20

25

INVENTORY TURNOVERNET INCOME ($ in Billions)



STRATEGIC ANALYSISCHALLENGES, OPTIONS & RECOMMENDATIONS



STRATEGIC CHALLENGES

INTENSE COMPETITIVE

LANDSCAPE IN

NORTH AMERICA

RISING DEMAND FOR

ALTERNATIVE ENERGY

CARS

DECLINING CORPORATE

REPUTATION OF TOYOTA



STRATEGIC OPTIONS

INTENSE COMPETITIVE

LANDSCAPE IN

NORTH AMERICA

Increase Investment in Production FacilitiesPROS

+ Better accommodate American car demand and taste+ Increase in brand loyalty and recognition

CONS- High cost- Cultural differences between countries

PROS+ Increase total sales of cars+ Increase brand reputation+ Product diversification

CONS- Increase in production costs- Customer confusion and obscure profitability

Introduce New Modelsand Innovative Cars

CONS- Technology would be shared- May hurt Toyota’s brand image

PROS+ Improve technology for current models+ Full advantage of the inventions

PROS+ Faster development and innovation+ Save R&D cost + Focus on the current car models



STRATEGIC OPTIONS

Increase R&D Investment

CONS- High risk in alternative energy development- High technological development costs

Partnerships with Companies

RISING DEMAND FOR

ALTERNATIVE ENERGY

CARS

CONS- Limit the product options for customers- Reduction in sales

PROS+ Lower production costs+ Does not risk brand image+ Restore brand loyalty and trust



STRATEGIC OPTIONS

Increase Customer Responsiveness & SupportPROS

+ Restore brand loyalty and trust+ Show awareness of customer concerns

CONS- High cost for implementation

Stop Production ofInferior Models

DECLINING CORPORATE

REPUTATION OF TOYOTA



SHORT-TERMSTRATEGIC RECOMMENDATION

TOYOTA hybrid



SHORT-TERMSTRATEGIC RECOMMENDA-

TION

TOYOTA hybridNEW HYBRID MODELS

• Corolla

• Yaris

• Sienna

• RAV4

PLUG-IN EVs: Expand beyond Prius

Pioneering FUEL CELL VEHICLES (FCV)



SHORT-TERMSTRATEGIC RECOMMENDA-

TION

MARKETING

PR Campaign for Alternative Energy Cars

• “It is Safe to Save the Environment” Campaign

• Establish brand image for alternative energy

• Build trust in safety

• Build customer loyalty



X

LONG-TERMSTRATEGIC RECOMMENDATION



T OYO TA X T E S L ANew Partnership. New Brand.

Fueling Infrastructure.

Target New Customer Segment.

Innovation in EVs and FCVs

LONG-TERMSTRATEGIC RECOMMENDATION

Reshaping Brand Image.

Documents

Toyota_Presentation