toyota motor corporationof im

8/12/2019 Toyota Motor Corporationof IM

1/24

Table of Contents

I. Assessment of TOYOTA YARIS Hybrid-R/ YARIS

1. Executive Summary 3

2. A Brief History of Toyota Motor Co. 3

2.1 Toyota Motor Company Backgrond !

2.2 Toyota in India !

2.3 Toyota YARIS Hybrid/ YARIS !

. Se!mentation Customer of TOYOTA "

3.1 T#$ Targ$t Mark$t o% T&Y&TA Hybrid "

3.2 '$mograp#ic S$gm$ntation "

3.3 ()yc#ograp#ic S$gm$ntation "

3.! *$ograp#ic S$gm$ntation "

4. Consumer

5. Porter's Five forces strategy

".1 T#r$at o% n$+ comp$tition

".2 Threat of substitute products or services

".2.1

T#r$at o% )b)titt$)

".2.2

S$cond #and car mark$t

".2.3

,aity

".3 Bargaining po+$r o% c)tom$r) by$r)

".3.1

T#r$at o% )b)titt$)

".3.2

T#$ Top p)#$r in India

".! Bargaining po+$r o% )ppi$r)

".!.1

India manufacturer

"." Intensity of competitive rivalry

".".1

)#o+room

".". Training c$ntr$ in India


2/24

2

". PESTEL in India

0.1 (oitica in India

0.1.2

*$n$ra initiati$)

0.2. Economic in India

0.2.1

r$$ mark$t

0.2.2

Ta

0.2.3

Int$rnationa trad$ r$gation)

0.2.

!

Int$rnationa )tabiity

0.2."

India4) *'( gro+t# rat$

0.3 Social

0.3.1

(opo)

0.! TECH!L!"IC#L

0." E$I!%&ET#L

0.0 Legal

#. # cultural frameor(

5.1 Language

5.2 Values & Attitudes

5.2.1

High Context Culture

5.3 %ELI"I!S

5.! Social !rgani)ations

5." legal

5.0 Education

5.5 Tec*nology + &aterial Culture

$. E,ternal analysis-&icro environment

6.1 Indian Automobile Manufacturers (SIAM)

6.2 India coming tr$nd

%. Internal analysis

7.1 BUILDIN !"UI#$!NT


3/24

7.2 #eople%Labour

/. %ecommend

11. Conclusion

12. A&&E'()CES1. *E+E*E'CES


4/24

Toyota Yaris hybird vehicle & Toyota Yaris vehicle

1) Executive Summary

Automobile industry, said to be one of the countrys major revenue but however the

more advance in the industry, the more environmental impact that will be create, it

range from climate change and dwindling natural resources to noise, smog and water

pollution !he resulting climate changes and the adverse affects having on

ecosystems and human living environments is cause for concern "lobal energy

consumption and #$% emissions, the cause of global warming, has been gradually

increasing since the industrial revolution &ue to appro'imately % of the worlds

total #$% emissions from energy sources is cause by the transportation

sector(Appendi' * + %), therefore, reducing #$% emissions is an important tas that

the automobile industry must deal with to improve air -uality ("lobal warming

prevention initiatives %*)

At are result, .ybrid /lectric 0ehicles or ./0s are becoming visible to us on roads

increasing the number day1by1day due to its growing popularity in an e'ponential

manner According to sources, today, we have about 2 million hybrid electric vehicles

worldwide is almost 3 million out of that 2 million has been sold during the last couple

of years and by that, I chose this product for this assessment 4 since we see a huge

trend in vehicle in India as well
http://paultan.org/2013/10/23/new-toyota-yaris-vios-hatchback-debuts-thailand/new_toyota_yaris_thailand_001/


5/24

2.) A Brief History of Toyota Motor Co.

2.1) Toyota Motor Coma!y Bac"#rou!d

!oyota Motor #orporation, commonly nown simply as !oyota, is a multinational

corporation head-uartered in 5apan At its pea, !oyota employed appro'imately

6%, people worldwide It is the world7s largest automobile maer by sales

!he company was founded by 8iichiro !oyoda in *96: as a spinoff from his father7s

company !oyota Industries to create automobiles !hree years earlier, in *963, while

still a department of !oyota Industries, it created its first product, the !ype A engine,

and, in *962, its first passenger car, the !oyota !oyota also owns and operates

;e'us and Scion brands and has a majority shareholding stae in &aihatsu and .ino

Motors, and minority shareholdings in amaha

Motors, and Mitsubishi Aircraft #orporation !he company includes ?%% subsidiaries

2.2) Toyota i! $!dia % $!dia Motor Coma!y imited '$MC)

Toyota is head&uartered in Toyota City' (ichi and in To)yo*

India $otor Company Limited +I$C, incorporated in -./. as a 0oint venture company

bet1een the bet1een the House of Habib +H2H,' a local conglomerate and Toyota $otor

Corporation +T$C, and Toyota Tsusho Corporation +TTC, of 3apan* The company

manufactures and mar)ets Toyota and Daihatsu brand automobiles for domestic consumption*

The main product offerings include several variants of the flagship 4Corolla5 in the passenger

cars category' 4Hilux5 in the light commercial vehicles segment and 46ortuner5 in 7port

Utility 8ehicle +7U8, segment


6/24

2.() Toyota A*$S Hy+rid , A*$S

!oyota Motor #orp vehicles produced minimal >aris was first born in *999

guaranteed in the /uropean design, engine performance, and security and optimum

fuel consumption, after the period of entering the /uropean maret &ebuted a year

later, it was awarded in % the /uropean >ear Award favorite car awards @ot only

that as a standard >aris compact car two bo'es only available in 5apan and @orth

America And for the Asian maret, the >aris assembled in !hailand, and for the

/uropean maret, the >aris in aris also add hybird system, A hybrid vehicle is a vehicle that uses an on1

board rechargeable energy storage system (B/SS) and a fuel based power source

for vehicle propulsion4 @owadays, hybrid technology is used not only for vehicle but

also in rail transport, public buses, military off1road vehicles, ships, aircrafts, etc

() Se#me!tatio! Customer of T--TA

(.1) Te Tar#et Mar"et of T--TA Hy+rid

!he target maret, or part of the -ualified available maret pursued, for .ybrid

automobiles can be identified by e'amining the major demographic, psychogenic and

geographic segmentation variables

(.2) /emo#raic Se#me!tatio!

!he hybrid automobile target maret is divided into various demographic groups

including age, life1cycle stage, gender, generation, and social class !he consumer is

between 6 and ? years old and of no specific ethnicity, religious bacground, or

gender (hybridcarscom, nd) !hey are affluent, well1informed, and educated adults

classed in the socio1economic segment !hey are commonly in higher managerial,


7/24

administrative or professional occupations and of upper middle class Additionally,

they are liely to be married with family responsibilities !herefore, they are not only

driven to purchase environmentally1friendly vehicles but also able to pay a higher

price due to their larger amount of disposable income

(.() 0syco#raic Se#me!tatio!

Cithin the identified demographic, two different groups, innovators and thiners, were

identified based on their varying personality traits, lifestyle, and values Innovators

are successful, sophisticated, and active with high self1esteem !heir purchases

often reflect cultivated tastes for relatively upscale, niche1oriented products and

services !hiners are more mature, satisfied, and reflective group of people who are

motivated by ideals, nowledge, and responsibility !hiners recogni=e the

environmental impact of motoring and would lie to do something about it !hey are

seeing to e'press their concern and ease their conscience !he two identified

psychographic groups for the hybrid automobile maret were identified to have higher

economic resources

(.) eo#raic Se#me!tatio!

.igh portions of the target maret for hybrid automobiles are in urban areas with

populations that desire to buy a car with environmentally friendly features

(hybridcarscom, nd) !his can be attributed to the problems of pollution and

congestion being more widely perceived as a serious issue in larger cities

. Co!sumers

A recent survey from the Dniversity of Michigan states that car buyer hybrid consider


8/24

that less gasoline use leads to less pollution, less green house gas emissions and

less dependence on foreign oil ,along with the hybrid gas saving are the most

important reasons why consumers buy this car

3. 0orter4s 5ive forces strate#y

http9::en*1i)ipedia*org:1i)i:#orter;five;forces;analysis

3.1) Treat of !e6 cometitio!

!oyota, the biggest advantage is the !oyota 5DS! I@ !IM/ concept !his is the

purpose of philosophy is the spirit of the time, providing fast and fle'ible response,

and in building mechanisms and systems, efficient and non1wasteful idea !he

concept is to provide the right products and information, at the right time, to provide

the correct number, the correct way, while maintaining a high level of efficiency and

cost control Eero inventory and 5I! lead to significant cost savings

!oyota needs to eep the production of automotive production lines in India to retain

its operational efficiency but that means car factory taes a huge investment in

e'pensive fi'ed costs, and training and retaining high labor costs !herefore, if the

car maret into a period of low, the company may see overproduction If on the otherhand, the automotive maret improves, then the company may miss the ability to

produce, due to the potential sales, so companies need time to adapt !his occurs

when the !oyota Motor #orporation of India in the past few years, when sales

increased e'ponentially, due to the introduction of consumer finance plan !o

increase the delivery time up to % years in the automotive maret has been sold more

than *? million rupees invoice price

3.2) Treat of su+stitute roducts or services


9/24

3.2.1) Treat of su+stitutes

The threat of the substitutes is high* There are a lot of substitutes in the automobile industry*

aris is appro'imately *,%29, vehicles compared to Bs *,?%?,

.onda #ivic to be more e'pensive !he price is -uite high than Bs *,:, Su=ui

;iana and .onda #ity


10/24

3.) Bar#ai!i!# o6er of suliers

The products are supplied directly from Toyota India manufacturer

3..1) $!dia ma!ufacturer

!he manufacturing plants and offices located in Fort Gasim, 8arachi An area of *?

acres of land, and has %% years of history, for many years has sold nearly ?,

vehicles, and shows impressive growth in automobile production

3.3) $!te!sity of cometitive rivalry

3.3.1) So6room

7ome competitor set up sho1rooms around Toyota such as 6ord' Hyundai and

$itsubishi

3.3.2) Trai!i!# ce!tre i! $!dia

!oyota India car company and its services department has conducted more than 6

inds of professional courses, and each year for the service manager or service

advisor, service engineers and technicians conducted e'tensive dealer service

personnel training !here are over % employees dedicated service training days

per year

6) PESTEL in India

8.1) 0olitical i! $!dia

India is the biggest democracy in the Corld !he government type is federal republic

Hased on /nglish common law, judicial review of legislative acts, accepts compulsory

I#5 jurisdiction with reservations, separate personal law codes apply to Muslims,

#hristians, and .indus !he political Situation in the India is more or less stable Most

of its democratic history, the federal "overnment of India has been led by the (I@#)

Indian @ational #ongress State politics dominated by several national parties

including the I@# !he Hharatiya 5anata Farty (H5F), the #ommunist Farty of India

(#FI), and various regional parties In the %9 Indian elections, the I@# won the


11/24

biggest number of ;o Sabha seats and formed a government with a alliance called

the Dnited Frogressive Alliance (DFA), supported by various left1leaning parties and

members opposed to the H5F $verall India currently has a coalition led government

and both major political parties the DFA and H5F, whichever comes in power It

comprises political stability and the policies of the government Ideological inclination

of political parties, personal interest on politicians, influence of party forums etc

create political environment


12/24

8.2.) $!ter!atio!al sta+ility

@o wars, no any country home problems, and no any type of war lie Ira- they mae

uncertainty in maret

Appendi' 6


13/24

Appendi' 3

0.1.5 India's "2P grot* rate

"ross domestic product ("&F) e'panded 2 percent in the second -uarter of %*6

in India compared with the previous -uarter ou can seeAppendi' 6

+ 3

India7s economic community services, trade , hotels , transport, communications,

finance, insurance, real estate and business services in the community , social and

personal services sector accounted for over 2 percent of "&F Agriculture , forestry

and fisheries account for about *% percent of output , but with a more than ? of

the worforce Manufacturing gross domestic production , while construction and

mining , the rest of -uarrying , electricity, gas and water supply , accounting for

*? of gross domestic production !his page provides 1 India7s "&F growth rate 1

the actual values , historical data , forecasts , charts , statistics, economic calendar

and news http://www.businessmonitor.com/news-and-views/gdp-release-core-views-

revisited#sthash.K2S1XGLX.dpuf

6.3 Social

In India, the population is aging &ifferent companies mae such increased costs to

him to pay their employees7 pensions, because companies need to upgrade to

e'tend the life of staff costs It also means that some companies have begun to

recruit older worers bac involved in this growing worforce It describes the

characteristics of the community in the organi=ation e'ists ;iteracy rate, customs,

values, beliefs, lifestyles, demographics and population mobility is part of the social


14/24

environment

8.(.1) 0oulous

India is the second most populous nation in the world with an appro'imate population

of over **billion people !his population is divided in the following age structureJ 1

*3 years 6*, *?123 years K 26* and 2? years and above K ?*

8.) TECH9--$CA

2ver ->> $NC have set up ?@D facilities in India in the past five years* These include

!' Bell Labs' Du #ont' Daimler Chrysler' !li Lilly' Intel' $onsanto' Texas

Instruments' Caterpillar' Cummins' $' $icrosoft and IB$

IndiaAs telecom infrastructure bet1een Chennai' $umbai and 7ingapore' provides the largestband1idth capacity in the 1orld' 1ith 1ell over /*=Terabits +/*=Tbs, per second

8.3) E9V$-*9ME9TA

In India, we now there are many different types of environmental problems, and in

non1polluting industrial activity that is a necessary condition of industrial organi=ation,

industriali=ation and urbani=ation has led to India7s profound deterioration of air

-uality Flace in the world each year due to outdoor and indoor air pollution 6 million

premature deaths, and based on an assessment of up occurred in India

8.8 e#al

These are related to the legal environment in 1hich firms operate* In recent years in

the

India There have been many significant legal changes that have affected firmsA


15/24

behavior*

The introduction of discrimination and disability discrimination legislation' an

increase in the minimum 1age and greater re&uirements for firms to recycle are

examples of relatively recent la1s that affect an organiationAs actions* Legal changes

can affect a firmAs costs and demand*

:) A cultural frame6or"

:.1) a!#ua#e

India is a multilingual subcontinent' and many Indians are bilingual or even trilingual*

The mixed and complex use of different languages in everyday conversations is

typical of Indian communication* In India' languages are recognied as official

languages* The largest language is Hindi the second largest Bengali* !nglish is the

second official language of ->> million spea)ers' but also the language of la1 and

government*

:.2) Values & Attitudes

India dimension ran) of E-' 1ith the 1orld average at F/* This indicates that India prescribes

to the values of long%term commitments and respects for tradition* The characteristics of a

long term oriented society include persistence and perseverance' ordering relationships by

status' thrift and having a sense of shame* The long term orientation dimension is closely

associated to the teachings of Confucius and can be interpreted as dealing 1ith societyAs

search for virtue' the degree to 1hich a society displays a pragmatic future%oriented

perspective rather than a conventional

:.2.1) Hi# Co!text Culture

Traditionally' India represents a high context culture* It is characteried by the same

courtesy' patience' harmony and pragmatism that characteries 3apanese culture*

Indians are very family%oriented and loyal to their group and to their employer* Indian

society is a hierarchical system in 1hich all obligations and duties arise from being a


16/24

member of the family' a member of a 1or) group' an employee or an employer*

#eople in India disli)e direct confrontation and for the most part avoid expressing a

clear Gno*G

:.() *E$$-9S

India is one of the most religious nations in the 1orld* It is )no1n as the birth place

for Hinduism' Buddhism' 3ainism and 7i)hism* Today' Hinduism and Buddhism are

the 1orldAs third and fourth largest religions 1ith over billion follo1ers*

:.) Social -r#a!i;atio!s

Li)e most (sian countries' Indians are very conservative about their family values*

oung Indians should al1ays touch the feet of his elders as a form of respect for the

elders* They are restrained from spea)ing in a high or rude tone to those 1ho are

older to them*

:.3) e#al

In India many type of act li)e license permission' copyright permission' and many types of

other permission*

+i,!mployment la1

+ii,Trade and product restrictions

+iii,Health and safety regulations

+iv,!U and international la1s

+v,$onopolies commission

:.8) Educatio!

The Constitution of India directs the Indian 7tate to 4provide 1ithin a period of ten years

from the commencement of the Constitution' free and compulsory education for all children


17/24

until they complete the age of fourteen years5 +the original (rticle F=' #art I8,*

:.: Tec!olo#y & Material Culture

Indian IT industry gre1 at over =J C(? bet1een -... and>> to U7K -=*E Billion then 1hich

has over million scientific @ technical manpo1er

?evenues from soft1are and IT enabled services industry is pro0ected to go up to U7K >%

U7K /> billion by >>/ including exports of around K > billion'


18/24

!he company building in India, including sewage treatment plants have been set up

;ose than ?, yuan of investment, recycling water used for planting water Hut

also the construction of a cogeneration power plant and environmental protection will

help reduce carbon dio'ide emissions to help this system is to operate engines and

turbines through the use of natural gas !he addition of a diluents recovery unit, the

cost price is %? million rupees has been aimed at the recycling of waste thin in its

manufacturing process

=.2) 0eole

Labor

!he number of employed persons in India increased to %999 !housand Fersons in

%** from %: !housand Fersons in %* /mployed Fersons in India is reported

by the #entral Statistical $rganisation, India


19/24

Automotive industry has seen more than a century, it was developed to meet

consumer demand for simple transportation $ther aspects of consumer purchasing

decisions, including security, reliability, value, lu'ury, and self1esteem All these

re-uirements can be met in any number of conventional vehicles .owever, the

introduction of a hybrid vehicle allowing poor fuel efficiency and environmental

benefits supply needs to be solved #onventional vehicles releasing ha=ardous

chemicals or contaminants, such as e'haust gas !hese chemicals, such as nitrogen

o'ides, volatile organic compounds, particulates, carbon mono'ide and carbon

dio'ide, are generated by the combustion of fossil fuels In addition to causing

NsmogN and could lead to global warming, these chemicals have been identified as a

cause or aggravate human respiratory diseases, including bronchitis, emphysema,

pulmonary fibrosis and asthma (&$/)

And the prices are already very flat itself should, recogni=e that this car can be sold

in India, because India did not lie toyota small vehicles on sale, but the same type of

vehicles in India, the price is more e'pensive than the car, so the maret value Oing

very high, with the same car also has another new hybrid electric vehicles, can be

said to be the biggest selling point

A trend is that there is a direction or order some momentum and durability of the

event !rend is more predictable than the trend and durability, they reveal the shape

of the future .ybrid vehicle maret trends in all relevant macro trends si' categories,

demographic, economic, natural, technological, social and cultural, that support and

demand for hybrid cars impairment

12. A00E9/$CES


20/24

Appendi' *

%1 '(%E!ission edction Tar*ets+ eslts and ,e- Tar*ets

Begion /missions %* !arget %: Besults @ew %* !arget

CorldwideP? 0olume per sales

unit

% reduction

from %*

6% reduction

from %*

6? reduction

from %*

!M#

(5apan)

0olume per sales

unit

6? reduction

from *99

?? reduction

from *99

2 reduction

from *99

!M#

(5apan)

0olume % reduction

from *99

%? reduction

from *99

6 reduction

from *99

Appendi' %

1(. *efere!ces

*) #onsumer Beports (%?) ou7re @ot "etting the MF" >ou

/'pect #onsumer reports (:)*, %1%6

%) .onda Motors website Betrieved $ctober %6, %? fromJ


21/24

httpJLLautomobileshondacomLmodelsLenvironmentaspQModel@ameR#ivic.ybrid

.ow .ybrids wor Betrieved $ctober *9 fromJ httpJLLautohowstuffworscomLhybrid1

car*htm

6) "uerrero, # (%?) !elephone interview with Symes, !oyota Bepresentative

#arlos "uerrero on $ctober %*, %?

3) .ybridcarscom Betrieved $ctober %?, %? from the Corld Cide CebJ

httpJLLwwwhybridcarscom

@ice, 8 (%?) .ow .ybrid cars wor Betrieved $ctober %, %? from

httpJLLautohowstuffworscomLhybrid1car*3htm

?) Ferreault, C&, 5r + Mc#arthy, /5, Hasic Mareting (*?th ed) Mc"raw1

.illLIrwin, %? @ew >or, @>T Betrieved $ctober *, %? from the Dniversity of

Fhoeni' resource httpsJLLmycampusphoeni'eduLsecureLresourceLresourceasp

2) I5I#.I, !aahio


22/24

Michigan 3*%1

*%2*

*3) / 5ih, oshida, DS &epartment of /nergy,


23/24

htt"!##www.bran$re"ublic.com#%i&italA'#ews#*1++*#Toyotalaunchesvehicle

2-) recallwebsitesalestumble#%/''/%i&italA'Bulletin

Brownsell, A. (2010b) Toyota sees sales rise as 34 car mar5et enoys &rowth

available online rom!

htt"!##www.mar5etin&ma&a7ine.co.u5#news#886+#Toyotaseessalesrise

34carmar5etenoys&rowth#%/'9:/;Aountain, ;.?. (200*), @eb 2.0! conce"tual

oun$ations an$ mar5etin& issues@ ?ournal o %irect, %ata, an$ %i&ital 'ar5etin&

ractice. olume! umber! + ""! 2+1CC.

2) n&a&ement $b (2010) Toyota en&a&ement $b


24/24

wwwtoyotacom,

wwwtoyotahistorycom,

wwwtoyotacar=onecom,

wwwcrown1motorcom

wwwhybridcarcom

www !oyota #onversationscom

www greencarreportcom

wwwrentacar1jpcom

www the bestcarcom

wwwlalulalucom

httpJLLwwwtoyota1induscomLcorporateLmanufacturing1facilitiesL

httpJLLgeert1hofstedecomLindiahtml

*

toyota motor corporationof im

Documents