Opportunities of Toyota Company
The first opportunity that Toyota Company having is increasing demand for Hybrid Electric Vehicle. A hybrid electric vehicle (HEV) is combining a conventional internal combustion engine (ICE) propulsion system with an electric propulsion system to produce a type of hybrid and electric vehicle. The demand for HEV will be increase due to the rising energy costs and increased emissions regulations. The engines of hybrid also more fuel efficient and less polluting compare with the conventional gasoline and diesel engines. Production volume will increase due to the cost disparities between HEVs and conventional light vehicles. The primary markets of the Hybrid Electric Vehicle which is United States, Western Europe and Japan also expected to experience relatively strong demand forthese fuel efficient and environmentally friendly vehicles. Toyota Motor is targeted with the growth of demand for hybrid electric vehicles. They were spending a ...view middle of the document...
The company is taking significant steps toward increasing its existence in Asian markets. Toyota Motor operates seven joint ventures and two wholly-owned foreign enterprises. GTMC, which is the Guangzhou Toyota Motor Company that is a joint vehicle production and sales company established with Guangzhou Automobile Group, is an important joint venture for the company in China. The purpose of the company is to expand its model line in China. In India, the company operates TKM, which is Toyota Kirloskar Motor to design, manufacture and market automobiles. Furthermore, the company is also paying close attention with the production capacity of Asian countries which are Thailand, Indonesia and Malaysia. In conclusion, to achieve higher market share in this growing market, the company is strongly manufacturing and marketing operations in Asian markets.
The next opportunity is the Toyota Company always came out their new models to attract their customer. The most success factor of Toyota is they able to produce high quality of vehicles in low price in purpose to focus on the medium income of customers. People are willing to spend on a Toyota car because the price is cheaper than other foreign car manufacturer especially German’s and Italia’s vehicles. They also create the higher luxuries car with higher price to target another group of customers. With the good brands name, Toyota able to achieve higher profits by introduces innovative products. Hybrid technology is a very good example of Toyota Motors to the world. People will still demand their products and believe their technology is trustable. Besides helping to garner additional revenues, new models will also help the company to revamp its aging model line up. Sun Zi said: He knows the other side (the enemy) and knows himself will not be defeated in a hundred battles.
Toyota Company can focus with their “Early Adopters” who are their original consumers. For example, these drivers are free thinkers who detest commercialization and are willing to repurchase another Hybrid car. They admire the “greenness” of the Hybrid car and see the car as a way to do their part in protecting the environment. Toyota Company would benefit by going with this target market as they are loyal, repeat purchasers, and understand hybrid technology.