2. Barriers to Entry:
• Cost to entry
70 years of car experience • Government Legislation
3. 1. Toyota will remain first leader
2. New entrants breach the automobile market
3. Evolution of External Factors
4.
5.
6. Cheap, reliable, good fuel efficiency
Captures the market
The big 3 cannot compete against Toyota
7.
8. 1st world leader
70 years of car experience
Cutting edge techniques top notch technology
Avant gardist strategy Hybrid Leader
9. • Will remain Number 1 no matter what…
• Keep innovating and always stay ahead
• China and India Potential markets
• However, can Toyota capture these market despite its light
fall due to the crisis?
• Reducing its cost seems to be in contradiction with its
development strategy
10. U.S, Europe, Japan Stagnant Growth
World's automakers shifted into
reverse
Cheap cars are popular in:
established markets
the developing world
11.
12. India's auto market =
China's = 140% growth over the
double to 3.3 million cars same period, to 16.5 million
cars
by 2014
The fastest growing car markets
in the world
5 Millions 2-Wh/year Sold
26% increase from 2004
Huge Market Potential
Aim 1 million cars by 2010
13.
14. Tata made a $2,500 car
o Few people can afford it
o
The Nano
o 30% less expansive than
o
competitors
Cut cost on everything
o
30 Different Models
o
No lack of potential
o
customers: The midle class Starting Price 11 400€
o
15. The global car market is polarizing
2012: the market for vehicles priced under $10,000 is
likely to reach 18 million cars
2010-11: Great Nano Success: 250 000 vehicles
Geely has gained a domestic market share of around
10% (USD 4,800)
16.
17.
Acquire knowledge
Reduce their dependency towards a domestic market
Expend products portfolio and can introduce different range
Obtain a competitive advantage
19. Tata and Geely The Biggest car
Toyota Loss of competitive
manufacturer in developing
advantage over green market
countries
20. • Oil is not an infinite resources
• Need of alternative sources of energy
• Mastering the new energy
Key competitive advantage
Hybrid may be outperformed
21. • Strategy is not just a matter of taking the right decision.
Taking the right decision, at the right time
• The 1973 Oil Crisis boost to Toyota’s actual situation
Strong Foundation
World Leader
Financial difficulties
• The actual crisis opportunity for new comers to breach the
market
• Strategy is hard to established Many unpredictable factors
22. www.toyolands.com Complete corporate history
www.wikipedia.com : 1973 Oil Crisis – Toyota – Geely – Tata
www.history.com : History facts about oil crisis and Toyota
www.china-roots.com/geely/geely-auto/ : Information about Geely
www.tatamotors.com : Official website of Tata.
ecologie.caradisiac.com
“Automotive Industry Analysis” by Team A