Gabe

Topics: Automobile, Internal combustion engine, General Motors Pages: 1 (299 words) Published: October 8, 2014
TOYOTA
1. How attractive is the automotive industry before the introduction of hybrid vehicles? Does the introduction of hybrid make the industry more attractive? Automotive industry is always a very attractive industry. As there are not many competitors in the industry. So the competitions are not so intense. The threat of substitutes are really depends on the geographic locations and economic conditions. In society, cars seem to be the major transportation. Although customers do have the bargaining power, it’s still very little compared with other industries such as food industry. The barrier in entering the automobile industry is very high. In accordance with the article, Toyota took an estimated 1 billion dollar to develop the Prius. In other words, it requires a very huge capital which makes it difficult to enter. The introduction of hybrid makes the industry more attractive. Because it created a whole new market for automobile companies to purse. As the technology is not that mature. Both threat of substitutes and competitions are low as it is a completely new segment.

2. In what way is the launch of Prius helping Toyota? What customers’ value is being fulfilled by this new product (Prius)?

Basically, the customers’ value are environmental protection, cost effective and less fuel consumption. Environmental protection is always an issue, people gradually recognized the threats of pollution. Therefore, they will try to look for the products that help to save the environment. And Prius is the one that people need. In the meantime, Prius can free the automobile from gasoline which could reduce consumers’ spending on gasoline. Moreover, less carbon dioxide emissions would make the environment better.

3. Which value discipline(s) is/are Toyota pursuing? Is it possible for Toyota to adopt all three disciplines? Why or why not? Quality, dependability and reliability.
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