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Toyota Motor Corporation Supply Chain Management

Autor:   •  October 31, 2017  •  2,718 Words (11 Pages)  •  208 Views

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The influences on the society and its culture are social related issues which help in bringing attitude changes and lifestyle changes. There was a growing concern throughout the world about the fossil fuel burning in the environment. There was also concern related to the prominent issues such as climate changes which was receiving media coverage widespread. To all these issues Toyota responded initially. Dual income household is another growing trend in the society as most of the females are entering to get jobs. There were also increment in the disposable incomes and therefore the customer buying power also increased. Most of the people are able to afford luxurious cars and they are looking for brands like Toyota so that they can use it for the commutation of work. Along with the economic crisis and also the prices of fuel is rising the Toyota motors are making sense for the customer for a second car for frequent usage. The company is going to target broader and larger audience for its new models of cars. As most of the families are looking to save cost, so the company is mainly aiming for model that is first space in the garage. Instead of considering it a second car, the company is thinking for more families will look for affordable family cars. It will help market Toyota as the roomy and comfortable. With good mileage, styling and affordable cost, it will further appeal for a broader range of the buyers. (M Hallgren, 2009) (CY Wong, 2011)


The technology is known to be the creativity and the knowledge in solving a problem and increment of efficiency. In most of the industries the technological capitalization advancement are booming up with novel ideas leads to multiple competitive advantages. The first hybrid car in the world will be released by Toyota innovation. There was also a lot of growing concern when it comes over the impact of petrol cars in the environment. To develop the environmental friendly cars, Toyota motor found the opportunity and also responded to the concern and also innovated the world’s first hybrid power car. The combination of the electricity and petrol to make power is the principle behind hybrid cars. This got resulted into superior economic fuel as the petrol was used very rarely on the highways or when the car is required to be run on higher speed. Toyota also released one of the new model cars in Prius in the year 2009 which used even more environmental friendly technologies. It was basically powered by Toyota’s revolutionary invention hybrid synergy drive systems. It has also shown improvement in the economy over than other models. The new prius came out to be packed with cutting edge technologies that include the solar ventilation system, multi information display devices, head up display speeds and the information about the navigation.


There are several opportunities when it comes to the environmental sustainability. The benchmark that Toyota has created to overcome the problem of fossil fuel consumption by innovating world’s first hybrid car also shown their concern towards the environment. There was a growing concern throughout the world about the fossil fuel burning in the environment. There was also concern related to the prominent issues such as climate changes which was receiving media coverage widespread. To all these issues Toyota responded initially. They also focused on creating a family car consume less fuels, affordable and also have world class facilities.


The legal frameworks mostly considers some factors such as the legislation in current scenario of the home market, legislation of future, employment laws, regulatory bodies etc. The Toyota Corporation is bounded to legislation like intellectual properties law, competition laws, taxation and the consumer protection laws. The development of any auto industry is reached it makes efforts to create local suppliers. Further Toyota corporation has given much emphasis in development of the whistle blower polices and also documented that explains the actual legal rights of the employees regarding the same. There are also some strict norms that are formed against the sexual harassment, racial discrimination among the employees etc. The code of conduct is also outlined so that no one can dare to violate the laws especially after the sexual harassment case of Sayaka Kobaysahi in the year 2006. (JH Wesseling, 2013)

Porter’s 5-Force Analysis of Toyota

Threat of New Entrants – Low

For getting an entry to a car manufacturing market is very risky as well as costly. The capital investment is very high initially. The competitions among the companies are very harsh and are mostly dominated by the well by the company those are well established. Being the well known multinational brand, the market that is unshakable with various segments and a giant size gives the Toyota motors many competitive advantages over the new enterprises in the automobile manufacturing company.

Threat of Substitutes – Medium

The trends of the industries indicate that the customer carries solid reliance on the market of used cars. The economy has till now not recovered completely, there are a significant number of cars demands are taken by the used car companies. The company has the ability to efficiently cut cost as compare to its competitors, Toyota motors has basically lowered the gap between the prices between its own automobiles and the used cars. Hence as compare to the peers it is lesser danger for Toyota.

Rivalry Among the Competitors – High

An oligopoly is represented by the automobile industries by considering the fact of constant competition for the share of market as well the prevalence of the industrial dominance. With the continuous increase in competition, the expectation of the customer is also increasing and there is also anticipation of lower prices from the customer. The Toyota motors have very strong cutting edge strategies, but recently due to natural disaster there is an extra pressure for the cost of Toyota. The Detroit Three was offering more discounts so that they can counteract the competition in process which again put burden on the Toyota motors production and cost strategies. However, Toyota is still the global leader in the production, low cost manufacturing of the products and they still operate in the same way. (MJ Epstein, 2014) (G Zandi, 2013)

Buyer Power – Moderate

It has been indicated by the recent


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