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SCHOOL OF ARCHITECTURE, BUILDING & DESIGN
FONDATION OF NATURAL BUILD ENVIRONMENT (FNBE)
REPORT TITLE: AUTOMOBILE MARKET
NO. NAMES STUDENT ID
1. DANIEL CHOW 0319980
2. HARWINDER SINGH GIRN 0319881
3. CARLSON KO 0319564
4. WENG CHUAN 0319951
5. CLEMENT CHEN 0319574
6. DANIEL TIEW 0319557
7. JOHN JIN FENG 0319645
Table of contents
NO. CONTENTS PAGE
1 Key Summary 1
2 Brief History and Bio Of Toyota 2-4
3 Brief History and Bio Of Lamborghini 5-7
4 Comaprative Anaylisis of Two Business 8-10
5 List of interviews (Question and Answer) 11-14
6 Recommendation 15
7 Bibliography 16
8 Appendices 17
9 Reference 18
Key Summary
In this global economic world, automobile is a requirement for college students and
working adults. Compared to public transports, cars and motorbikes are more convinient. In
this assignment, we are required to compare the specification between the two car industry
we chosen on. We did an interview survey with Mr. Abraham in Toyota, Subang Jaya and
Mr. Ron in Lamborghini, Kuala Lumpur show room.
Through this research and interview we have gained more knowledge on how does
business run in an automobile market and also understand the given task to acomplish this
report. Completing this task with understanding is rather smarter then working blindly.
Brief History Of Toyota
The brief history for toyota, which started in
year 1933 with the company being division of
Toyota Automatic Loom Works devoted to the
production of automobiles under the direction of
the founder's son, Kiichiro Toyoda. Kiichiro
Toyoda had travelled to Europe and the United States in year 1929 to investigate automobile
production and had begun researching gasoline-powered engines in year 1930. Toyoda
Automatic Loom Works was encouraged to develop automobile production by the Japanese
government, which needed domestic vehicle production, due to the war with China.
Although the Toyota Group is best known today for its cars, it is still in the
textile business and still makes automatic looms, which are now computerized, and
electric sewing machines which are available worldwide.
After World War 2, Japan experience
economic difficulty. The first car model started in
year 1947 named SA. The company is having
bankruptcy by the end of year 1949. Eventually the company manage to obtain a loan from
multiple banks.
Toyota began to expand in 1960s. They began to
have better facilities and partnership with Hino
Motors and Daihatsu. The first Toyota built
outside Japan was in April 1963, at Melbourne, Australia.
Brief Bio Of Toyota
NAME: TOYOTA MALAYSIA
HEAD OFFICE: UMW Toyota Motor Sdn. Bhd.,
No. 2, Persiaran Raja Muda,
Seksyen 15, 40200 Shah Alam,
Selangor Darul Ehsan, Malaysia.
BRANCHES: PRAI (NORTH REGION),
JOHOR (SOUTH REGION),
KOTA KINABALU (SABAH REGION),
KUCHING (SARAWAK REGION)
NUNBER OF SUPORT OUTLETS: THERE ARE 23 OUTSLETS IN WHOLE OF
MALAYSIA
Tel: (603) 5631 6688
Fax: (603) 5631 1333
Email: customer [email protected]
Brief History of Lamborghini
The brief history of Lamborghini, which started all by a man named Ferrucio
Lamborghini. The car Lamborghini is actually originated from his last name. He
was a man from the country, a lover of fast cars, a sober businessman and a
visionary at one and the same time. Ferruccio Lamborghini (1916 – 1993), is
regarded as being one of the great
Italian entrepreneurial personalities
of the 20th century. As a person
with many facets, his a man as
fascinating as his cars.
Ferruccio Lamborghini came into the world on 28th April 1916 on a farm in
the rural town of Renazzo di Cento near Modena. As a young boy, Lamborghini
already had a burning interest in all mechanical objects. He graduated with an
engineering degree from the technical university in Bologna. During the Second
World War he was stationed on the Greek island of Rhodes as a ground crew
member of the air force.
Lamborghini enjoyed his success and the
good things in life. Such as, good food, fine wines
and fast cars. In 1948 he had already built an open
sports car on the basis of a tuned Fiat Topolino and
took part with this car in the Mille Miglia road
race, which was extremely popular in Italy at the
time. However, the race ended for car number 427 after about 600 miles, as Lamborghini
reported himself, “in a bar which I entered with the car through the wall”.
Ferruccio Lamborghini established his own
motor car company, Automobili Ferruccio
Lamborghini S.p.A., in Sant'Agata Bolognese in
May 1963. Its location in the small town
between Modena and Bologna was chosen
carefully, typical for Lamborghini. The ultra-
modern plant in green meadow land with an area of 50,000 m2 had plenty of space to grow,
the tractor and heating factory not being far away. This was in the middle of the “Terra di
Motori”, engine country, home to the factories of Ferrari, Maserati and Ducati, and now
Lamborghini as well.
Brief Bio Of Lamborghini
NAME: Lamborghini Malaysia
HEAD OFFICE: No 12, Jalan Juruhebah U1/50,
Temasya Industrial Park, Glenmarie,
40150 Shah Alam, Selangor, Malaysia
BRANCHES: Shah Alam, Kuala Lumpur
NUMBER OF SUPPORT OUTLETS: None
Tel: (603) 5567 0888
Fax: (603) 5567 0999
Email: [email protected]
Comparative Analysis of the Businesses
1.2 Nature of their business
After going through the research on comparative analysis of the businesses page I strongly
suggest that this market is falls under the category of monopolistic competitive. As our
project is mainly aim on car industries, the category of monopolistic competitive is best can
suite under this field as it markets are being compete locally and globally. In this case of the
automobile business, each one offers something different and possesses an element of
uniqueness, but all are essentially competing for the same customers. Furthermore, each firm
makes independent decisions about price and output, based on its product, its market, and
its production. Not to forget that under this businesses there is no form of barriers to entry.
An obvious fact that both this car businesses such as Lamborghini and Toyota fall under the
same similar group of car dealer and services which is refer at table 1.1 but offer something
different and possess unique elements as to show the differentiate of their selling point. For
example, Toyota offers variety of vehicle as its primary source is to target customers of all
ages, they have practically categorized each car with unique features to fit the customers such
as SUV cars are design practically tough and sustainable for people who like to drive to
construction sites and hybrid cars offer drivers to minimize on the fuel consumption. Whereas
for Lamborghini, they tend to maximize their car sales to only sports car and their cars are
more likely to categorized the most expensive vehicle in car industries, well that is because
their aim is more likely to develop the car purpose to give customers a different driving
experience and emphasize more to the content of speed.
As to further elaborate the justification of monopolistic competitive, as the first paragraph
been mention, the head of the firm itself make makes an independent decision about the price
as like for Toyota the car have their own production line and they set the price independently
base on the progression of usage on drivers globally.
Also there are low barriers to entry for both of this car businesses. Since there are numerous
firms such as Audi, Ferrari, Mercedes and more, producing new car every year, each with
their own specialties of the vehicles, this will distinguish automobile business from being in
oligopoly market.
Categories of automobile companies
Lamborghini(Kuala Lumpur)
Toyota(Subang Jaya)
Businesses offer Car dealer and services Car dealer and services
Original founder Italian industrialist (Ferruccio Elio Arturo Lamborghini)
Japanese entrepreneur (Kiichiro Toyota)
Key founder(local) Malaysia and Singapore Lamborghini partnerships associated
Japanese and local Malaysian partnerships
Establishment of this company
This company is originally establish at overseas
This company is originally establish at overseas
Types of vehicle sell Typical expensive sports car and several models are produce only, but they are mainly specialize on it
The cars are ranging from luxury car, SUV, family cars, hybrid cars and they have less impact on selling sports car
Type of customers encounter
A few are able to afford from investor, head of business enterprise to high states ranking people, example: “DATO”
Family, moderate income worker and business man
Outlet or branches form this business
Currently only one branch is available in Malaysia
Peninsular Malaysia and more than thirty branches are total
Annual revenue figures More than five million annual per year
Hundred million annual per year
Pricing of vehicles RM 2million to 3million Above RM 60,000 to RM 300,000 more
Table 1.1 similarities and differences between automobile of Toyota and Lamborghini businesses
The List of Interviewed Questions : Toyota
1) When was the business founded?
Answer: This business was founded about fifty years ago, but I don’t really know the exact date.
2) Who are the key founders?
Answer: The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries
3) What prompted the founders to start this business?
Answer: The founders saw potential in this businesss line and they decided to invest for the company.
4) What are your main products?
Answer: We have products like Vious 155cc, Altis 1.8, Camry 2.0&2.5, Commercial Fortuner for high purposes.
5) Who are your customers?
Answer: Our customers are mostly Malaysians.
6) What is the business’ annual revenue figure?
Answer: A rough figure which is around seven to eight hundred billlion.
7) How many branch offices/stores do you have (if applicable)?
Answer: There are fifty to seventy branches that are available in Malaysia.
8) Can you provide us your most recent developments?
Answer: Normally our cars are petrol & disel. For our future developments, we are going for petrol saving cars which are hybrid cars that is coming out around March & May this year.
9) Do you have many competitors? Who are they? Who are your top 3 competitors?
Answer: Yes.We have quite a lot of competitors which is Honda, Nissan ,Mazda,Walswagon and lastly Audi.
10) Is the business constantly facing strong competition from other competitors? What strategies have they used to compete with you?
Answer: It is very competitive because they are using new technology and new engine.Our Strategy is using higher technology which is faster and safer engine which will give better,comfortable and convinient use to our customer.
11) How much capital is required to start this business? What, if any, specialized field of knowledge do you need to run this business?
Answer: High amount of money is needed to start up this buiness.Toyota was mainly from Japan and Malaysia cannnot compared to Japan.We need somebody to give the technologyto support us.
12) Generally, do you feel it is easy or hard to enter this market? Why?
Answer: Its very hard in manufacturing which is developing your own new engine.Other than that,it is easy doing dealership and selling car without having any problems.
13) How do you compete with your competitors i.e. what strategies do you employ to divert customers away from your competitors?
Answer: Mostly promote your techonology through advertisement,brochurs, multimedia and so on.A few models are also presented to attract the customers attention.
14) How often do you release a new product (this assumes the business sells differentiated products)?
Answer: Normally, the estimate time is 2-3 years because we need change to a different model that will be a hit in the sales.
15) Are your pricing decisions strongly affected by your competitors?
Answer: Its doesn’t affected completely.Our pricing is based on the quality of the product which is the most important.
The List of Interviewed Questions : Lamborghini
1) When was the business founded?
Answer: It started off in Malaysia 10 years ago. The Lamborghini factory is 2 years ago which still leads to up and until now.
2) Who are the key founders?
Answer: The bosses who is currently in Singapore and the local partners here.
3) What prompted the founders to start this business?
Answer: Well, basically we as business man start up this market because each of us have the passion to do this line. Audi took over Lamborghini and this is where we started.
4) What are your main products?
Answer: Lamborghini Hurucan and Lamborghini Aventador
5) Who are your customers?
Answer: Our customers are the ones who can afford it and the desire to own a Lamborghini car.
6) What is the business’ annual revenue figure?
Answer: It’s a target that we aim which is 5 million dollars.
7) How many branch offices/stores do you have (if applicable)? Answer: There is only one branch available here in KL. Because it’s considered a small business so we cannot have too much branches.
8) Can you provide us a brief history of your business and its most recent developments?
Answer: It started back in Subang like a showroom. Later on, we decided to shift to KL, because it had a better chance of selling here. The market are going upwards. The car is better than Audi and friendly user.
9) Do you have many competitors? Who are they? Who are your top 3 competitors?
Answer: There are quite a few. Which are Ferrari, Porsche and Specialize cars.10) Is the business constantly facing strong competition from other competitors?
What strategies have they used to compete with you?
Answer: Yes. They have good quality gears importing in and out which is a challenge for us.
11) How much capital is required to start this business? What, if any, specialized field of knowledge do you need to run this business?
Answer: For starters, 10 -20 million dollars is required to start this business.
12) Generally, do you feel it is easy or hard to enter this market? Why?
Answer: No. It’s a passion for me and it’s is not difficult once u have the experience for doing something u like doing. 13.) How do you compete with your competitors i.e. what strategies do you employ to divert customers away from your competitors? Answer: More extreme than anybody else is our strategy in doing this line. Our car is based on emotion based which is the desire and believe which is the best.
14) How often do you release a new product (this assumes the business sells differentiated products)?
Answer: We try to create and have something new every year. The car can last around 8-10 years.
15) Are your pricing decisions strongly affected by your competitors?
Answer: Yes. Because it is the most expensive car and there is no easy way in getting this kind of car.
Recommendation
Toyota
There are a few ways to improve the competitiveness of each business. For a kick start in
toyota business, they can set up a sales promotion for new car models with modification
during festive sesions like Chinese New Year, Christmas and many more. Furthermore, free
car wash for a life time after being certified as a loyal member. Not only that, the pricing on
spare parts can be discussed after certain purchases.
Lamborghini
Using good quality gears in a car business is really important especially Lamborghini cars.
This is because, Lamborghini is very expensive and customers deserve the quality they get
with their money worth. This allows them to draw customers away from their competitors
and gain their trust. Moreover, a 5 year guarenteed waranty will be given to the purchased
customers.
Bibliography
This are the references we explored…
Toyota
A) Toyota By: Chambers, K. Dennis. Greenwood Press 2008
B) The evolution of a manufacturing system at Toyota By: Fujimoto, Takahiro
Oxford University Press 1999
C) http://newsroom.toyota.co.jp/en/detail/3286486
D) http://www.leftlanenews.com/new-car-buying/toyota/
Lamborgihni
A) Lamborghini By: Maurer, Tracy.Rourke Pub.2007
B) Lamborghini By: Hill, Randal C..Capstone Press 2008
C) http://www.topgear.com/uk/lamborghini
D) http://www.gizmag.com/most-expensive-lamborghini-veneno/29464/
Appendices
MINUTES OF THE MEETING
DATE: 4 JANUARY 2015TIME: 2.08pm-4.25pmVENUE: Library
NAMES OF GROUP MEMBERS
TUTORIAL GROUP
ROLE
DANIEL CHOW Organizing work
HARWINDER SINGH GIRN Photographer
CARLSON KO History of the business
WENG CHUAN The comparative analysis
CLEMENT CHEN Editing video
DANIEL TIEW Interview data
JOHN JIN FENG Slide Making
NO. ACTIVITY ACTION TAKEN BY
1. Introduction
Daniel Chow started the topic of cars. Seperating them into 2 different businesses.
2. Points All members are given different task to accomplish.3.3
Survery We did an interview with the salesman of Toyota and Lamborghini.
4.4
Video Collecting data and touch up on video and report.
Reference
Toyota :
The Toyota way: 14 management principles from the world's greatest manufacturer
By: Liker, Jeffrey K..McGraw-Hill 2004
The Japanese automobile industry: technology and management at Nissan and Toyota
By: Cusumano, Michael A.. Published by the Council on East Asian Studies, Harvard
University and distributed by the Harvard University Press 1985
Toyota Crown repair manual: chassis
By: Toyota Motor Sales Co. 1975
The Toyota Foundation: 30 years of history 1974-2004.
By: Toyota Foundation 2007
How Toyota became #1: leadership lessons from the world's greatest car company
By: Magee, David. Portfolio 2007
The Toyota way to healthcare excellence increase efficiency and improve quality with
Lean By: Black, John R., and David Miller. Health Administration Press 2008
Toyota world of wildlife
By: Constable, Tamsin.Channel 5 Television 2001
http://www.toyota-global.com/showroom/toyota_design/
http://www.edmunds.com/toyota/
http://www.lamborghinikl.com/
http://www.livelifedrive.com/malaysia/lamborghini-cars
