case analysis of toyota driving

8/9/2019 Case Analysis of Toyota Driving

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Case Analysis of Toyota: Driving The Mainstream to Purchase

Hybrid Electric Vehicles

About case

Toyota is a large international automobile manufacturer with plans to become a largestworldwide automaker striving for 15% global sales. Toyota is committed to becoming the leader

of the hybrid-electric automotive industry is relying on changes in the industry and customer

perception to bring its plan fruition. Toyota’s challenge is to develop customer attitude and

purchase intent from an early adopter.

The automobile industry and market

• In 1!"# the auto industry has undergone dramatic transformation.

•

In 1!5# import manufacturer held slightly more than 5% of us market share.• In $""1# environmental concern about global warming and the fear of us dependence on

foreign oil.

• The technology for engine components is evolving towards cleaner# more efficient car.

The gasoline-combustion will not meet future environmental demand.

• ew and different technologies that will change the way of people to travel in future.

• &y $""'# the industry changed and developed from model T to clunky# fuel gu((ling

muscle cars to fuel efficient small cars of the )"s and *"s to sport utility vehicles +,/

of today.

About the comany

• The Toyota motor company was first established as spin-off Toyoda automatic loom

works a leading manufacturer of loom machines.

• 0eaded by ,aki chi Toyoda# who sold the patent rights to one of his loom machines in

1)'.

• In 15)# Toyota made the first move into merican# with introduction of the Toyopet

2rown. &ut it failed.

!b"ectives of comany

• ttain leadership in 03 segment

• 3volve 03 technology from niche to mainstream

• Increase acceptance of 03s

#e$ technologies and industry



• ,atisfy the needs of the customer and meet the stringent environmental legislation of the

future.

• 4rovide an opportunity to the manufacturer reinvent and revitali(e the auto with

disruptive technology win market share and revenues

• ew technology

• 6uel-cell technology

• 4ure electric vehicle

• 0ybrid electric vehicle

%& 'uel cell technology: had long to go it challenges with reliability and durability# power

output# cost efficiency and the ability for the manufacturer to mass produce.

• n electrochemical energy conversion device that converts 0$ and 7$ into 0$7#

producing electricity and heat.

• 8orks like battery can be recharged while drawing power from it.

• 3ngine is water eliminating all pollutants from process

.

(& Pure electric vehicle:

• 2ars that run on a battery and as a result have (ero tail pipe emission.

• Though many manufacturer have sold and leased 3s but many of them have

discontinued.

• 9imitation 3s are lack of power# long time charger# cold weather issue# and

challenges with the e:isting infrastructure.

)& Hybrid electric vehicle

0ybrid n electric motor gas or diesel powered engine ; increased fuel < efficiency and lower

emission.

8hat best

1. &etter gas mileage.

$. o obstacles with e:treme weather condition.'. ot re=uire any infrastructure changes.

,tudy found that hybrid technology is better for environment. se less fuel and emit less 27$

than fuel cell model.

Toyota*s cometitive advantage

Toyota production system +T4,/# as a part of the T4, company utili(ed >?ust in time@ production

system that was designed as a >pull system@ as opposed system >push system@ of mass

production.

Aust in time helped in reducing operating cost



.

It allowed Toyota to be fle:ible and fast in making changes to production system of

vehicles.

Toyota hybrid technologyThe $""B Toyota 4rius

5 passenger sedan# could reach speed up to 1""miesChour# achieve "-!" mph in 1$sec# more

power and more comfort.

$""'- 3stima introduced in ?apan.

$""5 -9e:us r:''" hybrid sport utility introduced.

$""5- '""#""" Toyota hybrid vehicles sold in ,.

$"1$- ll Toyota vehicles in , available with hybrid technology.

Toyota*s lanning

2hallenges- to service the vehicles.

4lanning

6ulfilled hybrid electric service needs

4reparing and training its service technicians at all dealership in servicing the Toyota 03

models.

4romised that every Toyota car# truck and , was covered by limited warranty coverage.

The cometition

07D is the strongest competitive threat to Toyota because it produces two 03 and had the

ability to adopt the technology into its manufacturing plans.

&ut don’t have any plan to add more gasoline electric 3s to its products line because the

company did not want to sacrifice short term profit.

s a result 0onda’s product plan did not include aggressive pursuit of disruptive 03s

technology# rather it planned to maintain its leadership in the segment to meet short-term profit

goals.

67ED introduces the first , 03# the 6ord escape in $""5.



F33E9 G7T7E, introduce a ,aturn , and 2hevrolet full-si(e# pickup truck in $""B.

Toyota*s challenge: moving u the bell curve

The challenge develop a strategy to turn the hybrid technology from a niche market product to amainstream acceptance.

To >move up the bell curve@ re=uired creating awareness about the product and building a

strategic advantage over traditional cars and trucks.

Toyota plan to give what they wanted.

Advertising and marketing

The 4rius had a fully integrated marketing plan with an emphasis on internet and webadvertising.

The initial strategy targeted >early adopters@ by showcasing the intelligence of the new

technology in a web-based marketing campaign.

Potential customer survey

"% would consider buying the hybrid version of current vehicle.

)5% somewhat to very informed.

verage buyers was a fairly well-off# educated# baby boomer.

case analysis of toyota driving

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