Oligopoly Industry Analysis

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The automotive industry is dominated by five key players General Motors, Chrysler, Ford Motor Co, Toyota Motor Co, and Honda Motor Co. The majority of the markets shares are divided up respectively between these five giants. This makes this industry an oligopoly, since not one company has full control over the market. When talking about the way profits are measure we turn to the GDP. The GDP, gross domestic product, is the total market value of all goods and service summed together in the course of the year it was provided. Now the GDP is different for each country. Since Toyota is mainly manufacture in Japan, their GDP influence is much greater compared to the United States. Now this isn’t to be confused with market share. Toyota also is the …show more content…
This starts to cause the line separating high and low end vehicles fading. For the lower end consumer this is a huge plus, but now manufactures have to find new features for their higher end cars to attempt to stay ahead of the curve. Doing this increases cost in development. The rescission has hit the manufactures hard, but this won’t stop Toyota. While they are slowing starting to increase sales due to the economy on the turn around, their main focus is to capture more of the market share. They have redesigned some of the top selling models; this has been accepted by consumers and critiques alike. With the sleek new looks of some of their new models makes consumer focus on them instead of the other manufactures cars that look the same as the last year. Toyota must focus on creating a new standard since 60% of its revenue comes from its manufacturing side of its company. With trading with multiple companies, creating new styles for their cars and attacking the market in order to capture more of the market share show that Toyota isn’t slowing down and will stop at nothing to conquer the …show more content…
is a Japanese based car manufacture in Toyota City Japan. Since 1937, when the company first opened, Toyota has been looking for new and improved way to deliver quality to their customer at a reasonable price. Toyota has since matured into an international car manufacture. They are also merged horizontally with Lexus; this is their more luxurious car firm. The Toyota and Lexus car firms allow Toyota Motor Company to reach all consumers in any walk of life. This is everyone from the struggling worker looking for a reliable car, or the wealthy business owner looking to acquire a status symbol. Whatever the situation Toyota has a car for you. Due to being a Japanese base company the morals and standards of their society bleed through and is show in the corporation. Toyota operates following five principles. The first is being faithful to what you are doing, whether it is the duties given to its employees or the overall standards of the company. Second is to always stay ahead of what the consumer needs and to be creative. Third is to not go overboard with irrelevant thing and to avoid unreasonable spending and product costs. The last to focus on the wellbeing of their employee, like having a warm welcoming work environment and that any spiritual matters are respected and all are treated equal. For the most part when your average consumers think of Toyota they might think of their mid-size cars and trucks, but they reach much further than that. Just about

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