Essay on Toyota's Strategy and Initiatives

648 Words Feb 22nd, 2011 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
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That is, many of the same rivals in the automobile industry have a presence across different borders with a special emphasis on markets with large sales volumes. Global companies must do well in these markets or risk losing market position. Toyota has achieved global success by transferring its key competencies and brand recognition across many countries.

What do you see as the key success factors for firms in the European mini- car segment of the automobile industry?
Key success factors in the European mini-car segment include

What forces are operating that have the power to alter the nature and structure of competition in the mini-car segment of the European automobile industry?
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

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