Japan: Toyota and the Hybrid Car Industry Can Toyota Continue to Maintain and Advance Its Position in the Hybrid Car Industry?

Topics: Automotive industry, Japan, General Motors Pages: 28 (8734 words) Published: September 24, 2012
BMA5112 Asia Pacific Business

Japan: Toyota and the Hybrid Car Industry Can Toyota Continue to Maintain and Advance its Position in the Hybrid Car Industry?

By:

Du ThiXuanHoa Edwin Choy NarminTartilaBanu
Wai Yean Tze

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Contents 1.0 2.0 2.1 Executive Summary ........................................................................................................................... 4 Introduction ...................................................................................................................................... 4 Japan’s Macro-Environment ......................................................................................................... 5 Economy................................................................................................................................ 5 Politics ................................................................................................................................... 5 Foreign Direct Investment (FDI) and Globalization............................................................... 5 Innovation ............................................................................................................................. 7 Business Groups .................................................................................................................... 8 Culture................................................................................................................................... 8

2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 3.0 3.1 3.2

Japan’s Car Industry .......................................................................................................................... 9 Japan - the world’s largest car exporter ....................................................................................... 9 Analysis of Japan’s competitive advantage in car industry (using Porter’s Diamond Model) .... 10 Sustainable Factor Conditions: ........................................................................................... 10 Dynamic Demand Conditions:............................................................................................. 10 Related and Supporting Industries: .................................................................................... 11

3.2.1 3.2.2 3.2.3 3.3 4.0 4.1 4.2 4.3 4.4 5.0 5.1 5.2

Comparison of Japan’s National Diamond with Other Countries’ Diamond .............................. 14 Toyota Motor Corporation (“Toyota”) ............................................................................................ 17 Toyota’s Origins .......................................................................................................................... 17 Toyota’s Management Philosophy: The Toyota Way ................................................................. 17 Toyota’s Venture into Hybrid Cars .............................................................................................. 18 Analysis of Toyota’s Overall Business Strategy ........................................................................... 19 Hybrid Car Industry ......................................................................................................................... 20 General history of hybrid car industry ........................................................................................ 20 Current status of hybrid car industry .......................................................................................... 21 2

6.0 6.1 6.2 6.3 6.4 7.0

Analysis of Toyota’s Hybrid Car Strategy ........................................................................................ 22 Strategy diamond ........................................................................................................................ 22 Comparison ................................................................................................................................. 25 Toyota’s (Perceived)...

References: 9. The Competitive advantage of Nations, Harward Business Review, March – April 1990, Michael E.Porter 10. Technology and Labor in Automotive Industry, first chapter, Sung-Jo Park 11.The Japanese Automobile Industry, A Brief Industry, Introduction Chapter 12. http://www.ehow.com/about_5318303_history-japanese-autos.html#ixzz1IujExLdd 13.http://www.associatedcontent.com/article/2261655/top_10_car_makers_of_the_world_of_2009.ht ml 14. http://en.wikipedia.org/wiki/Keiretsu 15.http://www.businessweek.com/innovate/NussbaumOnDesign/archives/2007/02/toyota_shows_the _way_in_innovation.html 16. http://www.allaboutprius.com/blog/1014178_toyota-prius-a-brief-history-in-time 17. Annual Report, Toyota, 2010 18. http://www.hybridcenter.org/hybrid-center-how-hybrid-cars-work-under-the-hood-2.html 19. Hambrick, D., and Fredrickson, J. (2005). Are you sure you have a Strategy. Academy of Management Executive, 19, 2005. 54. 20. http://www.mmc.com/knowledgecenter/viewpoint/Slywotzky2007.php 29
21. http://www.allcarselectric.com/blog/1020336_hybrids-are-profitable-for-honda-and-toyota-3100profit-per-vehicle 22. http://www.mmc.com/knowledgecenter/viewpoint/Slywotzky2007.php 23.Powertrain Diversity Drives Toyota Forward , Ward’s Auto World October, Tom Murphy, 2010 24. Technology Strategy and Management- Reflections on the Toyota Debacle, January 2011, Communications of The ACM, Michael A. Cusumano 25. http://usnews.rankingsandreviews.com/cars-trucks/rankings/Affordable-Midsize-Cars/ 26. http://www.fueleconomy.gov/feg/byfueltype.htm
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ANNEX 1 Toyota’s Hybrid Car System Toyota adopted the “series or parallel hybrid” system to deliver the energy-saving benefit of a hybrid vehicle. Two key technologies — the power split device and sophisticated energy management — form the backbone of the system. These technologies are important to enable optimization of the flows of mechanical power and electric power at the highest possible efficiency.
Source: www. toyota-global.com
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ANNEX 2 History of Hybrid Car Industry 1896: The idea of a hybrid car was in part first conceived by a Viennese coach builder named Jacob Lohner, who felt that gas-driven cars were too noisy and smelly. To resolve this problem, Lohner partnered with a young Austrian engineer named Ferdinand Porsche. Porsche had invented the electric wheel-hub motor, a battery-operated motor that actually fit inside the hub of a wheel. Under Lohner and Porsche’s partnership, Posche’s in-wheel motors were combined with one of Lohner 's coaches. The result was the Lohner-Porsche Elektromobil. 1900: The Lohner-Porsche Elektromobil made its debut at the Paris Exposition. Porsche subsequently added an internal combustion engine to recharge the batteries, making it the first hybrid electric vehicle. 1917: Woods Motor Company introduced the Woods Dual Power, a hybrid electric vehicle with a 4cylinder internal combustion engine. The Dual Power had a top speed of around 35 miles per hour (56.3 kilometers per hour). However, it was not a success. 1960s and 1970s: Electrical engineer Victor Wouk built a prototype HEV based on the Buick Skylark. The project was dropped when the U.S. government decided not to invest in the vehicle 's further development. 1968: GM developed the GM 512, an experimental vehicle that ran on electricity at low speeds and gasoline at high speeds. 1989: The experimental Audi Duo was introduced. It combined a 12-horsepower electric motor with a 139-horsepower internal combustion engine. 1997: In response to challenges to develop more fuel-efficient vehicles, Toyota introduced the Prius and began marketing it in Japan. 1999: Honda introduced the Insight. 2000/2001: Toyota began marketing the Prius in the United States. 2002: The hybrid car industry started to grow. Honda introduced the Accord Hybrid. 2004: Ford introduced the first hybrid SUV, the 2005 Ford Escape. 2005: The Toyota Prius was the best seller brand over all other hybrid car models. About 108,000 units were sold. This represented 52 percent sale of the total hybrid car market. 2010: Couple of car manufacturers introduced or announced plans to introduce new hybrid or electric cars. Nissan Leaf and Chevrolet Volt Leaf, both electric cars, were launched in the US. Honda announced that it would introduce electric and hybrid cars in China in 2012. 32
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