Socio/Economic/Political/Lifestyle trends
There are various external factors which impact Toyota as well as entire automotive industry. By evaluating such factors, the company’s executives should develop programs and strategies to support the growth and stability of business in short and long term. Toyota, significantly should maintain its position in the market as the leading global firm by effective addressing the issues that would highlighted in PESTLE framework;
One of the opportunity for Toyota is the political stability to grow with the minimal political concerns. Additionally, free trade agreement that involves Japan as well as other countries where the company has been opportunities present the opportunities for improved market penetration. The industry has been rapidlyevolving on various dimensions such as technological innovation, structural shift with in consumer’ changing preferences and adoption of the stricter government regulations.
Notably, the social factors or trends that includes cultural aspects such as population growth rate, awareness, emphasis on safety, career attitudes and age distribution affect the demands for the product of company. In numerous markets, there is a high demand of SUVs while in other markets, customer prefer Sedans. The age distribution in the various population is one of the significant factor that car manufacturer should keep in mind while targeting its customers.
In addition to this, the cloud technology significantly continues to be ongoing trend in the industry, transform every aspect of the manufacturing that includes operations, design and augmented activities that optimizes service and processes, help to eliminate waste and reduce cost.
Lack of growth/ growth drivers
There are various growth drivers that can boost profitability and performance of car manufacturing company to greater extent. The disruptive technology is one of the growth driver in the automotive industry since the industry is capital intensive, the disruption has become one of the fundamental to the rapid evolution of the mobility ecosystem. It is noteworthy that the innovation is challenging established principle from value proposition to product life cycle and cost drivers. It is important for the mobility service providers and automakers that finding innovative ways is essential to retain the loyalty of customer when they would no longer be tied down with contracts and capital investment to the specific service provider or brand.
In addition to this, the purchasing decision of customer is highly influenced by the factors which includes comfort, availability, reliability rating, ease of use, and pricing. In contrast, the lack of growth in the automotive industry is due to the cost pressure and complexity. The increased in regulation in relation to safety and environmental standard tend to increases cost and complexity (Liu, 2018).
Seasonal/ timing factors
The demand for the auto mobile among customers is highly influenced by the two peak season including autumn and spring months. The average sale price of cars during these period rises due to the fact that the manufacturer customarily introduce new cars or automotive inventory stock at this time of calendar year. The sale of car drops since the retail sector starts experiencing its considerable holiday season sales surge, which in turn lead customers to make large expenditures of their disposableincomeelse where (Gorzelany, 2018)
Main players (direct/indirect competition)
Significantly, Toyota Company has been operating in the oligopo listic market where car manufacture always seek to build the high quality vehicles. Because of the operational cost, there are new firms suffers from the high entry barriers. This in turn, limits the automotive manufacture in the industry. The company has interest in enhancing their processes tor restrict the number of emerging companies and to stay competitive in highly competitive market arena. Today, there are many customers who are part of the green movement and have a positive attitudes to the sustainability of environment, in combination with increased prices of fuel has created a demand for fuel efficient, smaller cars. In addition to this, it is important for the company to grasp on both environmentally conscious and cost-conscious customers. The competitors in automotive industry are aggressive in terms of marketing and innovation. The competitors differentiates through fuel efficiency, electronics, cost, brand image. Style and other variables. It is important for the competitors to have a comprehensive strategies for the purpose of addressing the strong force of competitive rivalry(REUTERS, 2016).
4PCs
The company moves with strategy of mass production of which the company has enabled to it sell widely in the international markets. The company manufacturer high quality vehicle at reasonable prices. Also, Toyota also uses tactful pricing strategies via price differentiation so that the company is different from other market players. The company focuses on the distinguishing unique point of difference for the purpose of reaching new market segments and reduce competition. In addition to this, the competitors in the market positioned themselves as the leaders in the affordable, strongly built and eco-friendly cars. Also, they use different tactics to motivate customers to purchase products. They tend to use social media, mass media promotion and print advertising to engage customers in an active process that successfully persuades and informed customers to buy their products,
Trend in IMC
There are several trend in integrated marketing communication (IMC) such as increasing media prices, loss of trust in mass advertising, need to increase the impact of message, and influence and the related need to increase efficiency and effectiveness, media and audience fragmentation. The competitor asses their marketing budget as well as target audience while setting their IMC goals because businesses always grow in their marketing communication(Tsai, 2005).......
This is just a sample partical work. Please place the order on the website to get your own originally done case solution.
Related Case Solutions & Analyses:
Music and the (Real) World: Thirty Years of MTV
ATR KimEng Financial Corporation
Market of Exchanges: HKEx and the New Beauty Parade
Candy Land: The Utopian Vision of Milton Hershey
Does IP Strategy Have to Cripple Open Innovation?
Organization and Strategy at Millennium (B)
Revitalizing Dell
Water Treatment Facility
Arundel Partners
Finance Project
