Essay - Toyota's Prius Executive Summary with the Increased Level of Awareness...

TOYOTA'S PRIUS

EXECUTIVE SUMMARY

With the increased level of awareness of ***** environment, automotive car manufacturers vie on the viability of selling environmentally hybrid cars. Leading this group are Honda and Toyota. The following is a m*****rket analysis of the position of Toyota's Prius. It analyzes the ***** factors:

***** of the firm in the market

The industry of ***** cars

***** strategy adopted by Prius and how it is faring in the market

The barriers of the *****

Some alternative strategies to rectify the weakness of ***** and The implementation of one of its alternatives.

SITUATION ANALYSIS

Firm

Toyota Motor Corporation with its subsidiaries all around the world reports $5447 billion for the fiscal year 2001. With more than 5.5 million cars, trucks, and buses worldwide sold annu*****y, ***** company boast ***** high prof***** and symbolizes the ideal in automotive *****. Spread to 24 nations ***** regions worldwide, Toyota with its new ********** concept of business has recently introduced Prius, an environmentally friendly hybrid car in direct competition with Honda Insight. Only second to Jap*****, North America is the largest market for its products ***** 1734 thousand units for ***** year 2001 alone. This ***** inspired the company to target the American ***** ***** the new Prius [http://global.toyota.com/ir.html].

***** Analysis

Threats of entry: Currently, ***** automotive industry is categorized by ***** level of technological development. Although Honda and Toyota are known for innovations, it is also common knowledge that technological ***** in th***** arena is being ***** by *****e need ***** the consumers to have environmentally ***** products. ***** threat lies in the fact that hybrid cars will become dominant opening doors for new entrants to manipulate th***** technology to meet *****ir business needs. Soon all mode of transportation will ***** hybrid.

***** o f substitute products: Gasoline operated cars is gradually being pushed out o***** the picture in favor of the electric cars. Hybrid cars will also become ext*****ct like Gasoline cars when alternative fueled cars ***** ***** such as solar powered, hydrogen fuel etc. become common ***** for car manufacturing.

Bargaining power of suppliers: Currently, hybrid ***** technology is still new for the market. Fur*****rmore, hybrid car technology ***** still new for the consumer market to digest. In order to fetch a good price, ***** model, designs and convenience ***** the ***** must be enhanced in order to generate ***** level of consumers desired for its successful sales. The bargaining power of the suppliers is still limited as compared to the technology *****y have on hand because the demand ***** still low.

Bargaining ***** of buyers: Buyers at the moment ***** find gasoline *****s more convenient due to ***** ***** of achieving fuel. Electric ***** cars is still costly when ***** to gas cars in terms of fuel and ma*****tenance. Hence, the buyers at th***** initial stage comm***** *****e pricing ***** their productions. Due to their high price, the ***** are also cautious of buying ***** "technology" and do not consider it as an investment.

Competi*****rs: Cars