Competitive Industry Analysis: Toyota Motor Inc.

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“5 forces by Michelle Klein, Nana Osei and John Williams”

Industry Toyota Motor Inc. is a Japanese established automobile manufacturer, which is headquartered in Toyota, Aichi, Japan. They operate with in the automotive industry, which includes all companies and activities involved in the manufacturing, development, and marketing of motor vehicles and most of their components, such as engines and bodies; this excluding tires, batteries, and fuel. The primary products of the industry are passenger cars and light trucks, including pickups, vans, and SUV’s. Toyota Motors Inc. main competitors in the industry are other large manufacturing companies such as General Motors, Ford, and Chrysler; these are the largest automobile cooperation’s in
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There are many different forms of transportation, however none offer the same convenience, independence and value provided by a personal vehicle. The substitutes may offer more affordable options such as bicycles, public buses, and subways but these would only exist or be acceptable in highly populated urban areas where commutes are short and transportation is vast. The switching costs may also be considered when deciding on a mode of transportation. While this may not be monetary this could be personal time (i.e. a trains take 3x longer than a vehicle), luggage limitation (i.e. planes limit your luggage to 50lbs before additional charges), and persons capacity (i.e. bicycles limited to one person; most of the time). There may also be limitations on substitutes that also weaken the effect on the industry such as weather and routes. The weather would affect the ability of these individuals that would choose planes, bicycles or motorcycles by delaying timetables. Buses, planes and trains have limited routes, so if a consumer decided to use one of these forms of transportation, chances are they would need a secondary form of transportation once they arrived at their final destination. Alternatively we could also argue that used vehicles would be substitutes; with companies offering used vehicles to people with small budgets, which creates a price gap for automotive manufactures. Toyota’s ability to cut cost more effectively than their competitors have narrowed the cost gap between new and used vehicles. Therefore they have less danger of used vehicles as substitutes then their

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