Automobile Industry Analysis Essay

648 Words 3 Pages
What is competition like in the mini-car segment of the European automobile industry? What do we learn about the nature and strength of the competitive pressures Toyota Motor Europe (TME) faces from doing a five-forces analysis?
Competitive Rivalry – Major European competitors include VW, BMW, Ford, Fiat, and
PSA (the holding company that owns the Citroen and Peugeot brands). Toyota enjoys a very loyal customer base. The company has consistent, high-ranking quality marks.
New Entrants – The mini-car segment is undergoing renewed growth due to global economic factors. To sustain market position in a slow growth market, many brands have tried or will try to enter this segment. New entrants to this segment have tried various strategies without much success.
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The driving forces

Based on the information in case Exhibits 1, 3, and 4, how well are the
Toyota in general and, more specifically, the Aygo positioned to compete against rivals in the mini-car segment? Does the Aygo compare favorably to other mini-cars and to similar cars made by Toyota’s partners (i.e., the
Peugeot 107 and the Citroën C1)?

What does a SWOT analysis reveal a bout TME’s situation? Just how attractive is the company’s situation and position in European mini-cars?
How successful has TME’s joint venture with PSA been? Why did TME choose this method to enter into the European mini-car segment of the automobile industry? How has TME’s competitive position been strengthened by this alliance? Has it been weakened in any way?

Based on your analysis of the industry and TME’s situation, what challenges will TME face in attempting to reach its goal of selling 100,000
Aygos annually? Do you think the company’s marketing strategy will be effective in enabling the company to meet this sales goal? Why or why not? What actions would you recommend to TME’s top management team to improve the company’s competitive position and make the Aygo a

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