1 Introduction
The Toyota Australia board has commissioned this report to review the current strategic direction, and if determined necessary propose a revised strategy to be considered for implementation.
The reasons for this review stem from recent changes in strategic direction from Toyota’s competitors within the Australian marketplace with the remaining local manufacturers electing to cease production in Australia.
Currently Toyota Australia employs a three pronged strategy (Grant, 2012) within the Australian market. This comprises of
1. Local manufacture for the Australian market for limited models
2. Exportation of these same lines to international markets
3. Importation of other models for sale within the Australian market
A series …show more content…
These dynamics are identified in figure one below. Figure 1 - five forces analysis of Toyota Australia
In reviewing the findings of the five forces analysis above the key areas that are applicable to Toyota Australia include
• The intense competitive rivalry of the relative small Australian automotive market
• Possible future implications of the recent free trade agreements and volatile Australian dollar (Hill, 2013).
• The high threat of substitutions that exist due to the similarities of vehicles offered in the current market.
• The loss of other manufactures placing significant stress on the sustainability of the local related markets that currently produce parts and sub-assemblies (Slack, 2012) for Toyota
• The global ability of Toyota to procure (Sollish, 2012) parts that should be more cost effective than locally acquired …show more content…
This market leadership has allowed the company to invest heavily in R&D and technology (Anon, 2016).
The geological proximity to the parent company in Japan also means the ability to draw on skills, resources and management resources easily and efficiently. Toyota has a strong presence in Australia, not only in assets such as plants, equipment and materials. In addition to its existing staff contingent, a goal should be to hold a large pool of good Australian talent in engineering and mechanical design. Lastly the strong market reach, and presence both domestically and internationally maintains the brand in high esteem.
Capabilities and opportunities are also strong for Toyota Australia, particularly when considering the ability to capitalize on the closure of other manufacturers such as Holden and Ford. There is the potential to take advantage of this, increasing the product offering and market share across the automotive sector as a whole. Increasing production and market presence while maintaining value for money in the manufacturing chain. Predominantly through lower operating costs and regional
The Toyota Australia board has commissioned this report to review the current strategic direction, and if determined necessary propose a revised strategy to be considered for implementation.
The reasons for this review stem from recent changes in strategic direction from Toyota’s competitors within the Australian marketplace with the remaining local manufacturers electing to cease production in Australia.
Currently Toyota Australia employs a three pronged strategy (Grant, 2012) within the Australian market. This comprises of
1. Local manufacture for the Australian market for limited models
2. Exportation of these same lines to international markets
3. Importation of other models for sale within the Australian market
A series …show more content…
These dynamics are identified in figure one below. Figure 1 - five forces analysis of Toyota Australia
In reviewing the findings of the five forces analysis above the key areas that are applicable to Toyota Australia include
• The intense competitive rivalry of the relative small Australian automotive market
• Possible future implications of the recent free trade agreements and volatile Australian dollar (Hill, 2013).
• The high threat of substitutions that exist due to the similarities of vehicles offered in the current market.
• The loss of other manufactures placing significant stress on the sustainability of the local related markets that currently produce parts and sub-assemblies (Slack, 2012) for Toyota
• The global ability of Toyota to procure (Sollish, 2012) parts that should be more cost effective than locally acquired …show more content…
This market leadership has allowed the company to invest heavily in R&D and technology (Anon, 2016).
The geological proximity to the parent company in Japan also means the ability to draw on skills, resources and management resources easily and efficiently. Toyota has a strong presence in Australia, not only in assets such as plants, equipment and materials. In addition to its existing staff contingent, a goal should be to hold a large pool of good Australian talent in engineering and mechanical design. Lastly the strong market reach, and presence both domestically and internationally maintains the brand in high esteem.
Capabilities and opportunities are also strong for Toyota Australia, particularly when considering the ability to capitalize on the closure of other manufacturers such as Holden and Ford. There is the potential to take advantage of this, increasing the product offering and market share across the automotive sector as a whole. Increasing production and market presence while maintaining value for money in the manufacturing chain. Predominantly through lower operating costs and regional