Strategic Management

Topics: Automotive industry, Toyota, General Motors Pages: 19 (6360 words) Published: July 31, 2013
School of Business
MBA 550 Group Assignment Submitted to: Dr. Sayed Nayeemul Huda Submitted by: Group- A i

Case Study: Toyota’s Strategy and Initiatives in Europe: The Launch of the Aygo

Group Members:
Abu Sayem ID: 1110838 Kazi Rezwan Shafiq ID: 1125017 Nabil Iqbal ID: 1110827 Syed Al Mahtab Hossain ID: 0730078


Table of Contents


1.0 Introduction 1.1Company Profile 2.0 SWOT Analysis 3.0 PEST Analysis 3.1 Analysis of new entrance of an automobile company in Europe 4.0 Porter’s Five Forces Analysis 4.1 Porter’s Five Forces Model in the context of Europe 5.0 Generic Strategies 5.1 Strategy of Toyota in Europe 6.0 Conclusion 7.0 Bibliography

1 3 4 8 11 14 17 20 20 21 22


1.0 Introduction: Toyota Motor Corporation is a Japanese multinational automaker Company. Toyota Motor is one of the leading auto manufacturers in the world. Toyota sells its vehicles in more than 170 countries and regions worldwide. Toyota‟s primary markets are Japan, North America, Europe and Asia. Toyota Headquarters in Toyota city, Aichi, Japan. In 2010, Toyota employed 317,734 people worldwide, and was the world's largest automobile manufacturer in 2010 by production. Toyota is the ninth largest company in the world by revenue. The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu and Hino Motors, along with several "non-automotive" companies. TMC is part of the Toyota Group, one of the largest conglomerates in the world. In 2008, Toyota's sales surpassed General Motors, making Toyota number one in the world

Toyota Motor Europe oversees the wholesale sales and marketing of Toyota and Lexus vehicles, parts and accessories, and Toyota‟s European manufacturing and engineering operations. Toyota directly and indirectly employs around 80,000 people in Europe and has invested over €7 billion since 1990. Toyota‟s operations in Europe are supported by a network of 31 National Marketing and Sales Companies across 56 countries, a total of around 3,000 sales outlets, and nine manufacturing plants

Toyota's European sales peaked in 2007 at 1.23 million units. In 2012 the company aims to sell 835,000 units, up from 822,000 units in 2011.

Over the time in europe mini car become more popular. Because of economic uncertainty, high unemployment, high fuel price and more concern about environment. For this reason most of automobile company produce mini car for their customers. In 2005 Toyota also introduce Aygo city car in europe. The decision to produce the cars was made on July 12, 2001, when the presidents of Toyota and PSA Peugeot Citroën, Fujio Cho and Jean-Martin Folz respectively, decided to produce a small car to share


development costs. This project was called B-Zero. The Peugeot 107 and Citroën C1 are rebadged versions of the same car. The Aygo's starting on-the-road price is €8,500 (GB£6,845). The main difference between the Aygo and its siblings is in the interior equipment, badges, logos and the easily recognizable rear end of the car. The planned production is 300,000 cars annually – 100,000 cars per brand. Sales began in July 2005 and the car is available as a three or five-door hatchback. There are two engines available, a 1.0 L three-cylinder engine rated at 68 bhp (51 kW), and a 1.4 L HDi diesel I4 engine rated at 54 bhp (40 kW). The Aygo has a 4-star EuroNCAP rating (, 2012).


1.1 Company Profile: Company Name President and Representative Director Company Address Head Office 1 Toyota-Cho, Toyota City, Aichi Prefecture 471-8571, Japan Phone: (0565) 28-2121 Nagoya Office 4-7-1 Meieki, Nakamura-ku, Nagoya City, Aichi Prefecture Phone:...

Bibliography:       Bohm, A. (2009) The SWOT Analysis. GRIN Verlag. Eldring, J. (2009) Porter‟s (1980) Generic Strategies, Performance and Risk: An Empirical Investigation with German Data. Diplomica Verlag. Ferrell, O.C. and Hartline, M. (2010) Marketing Strategy. Cengage Learning. Henry, A. (2008) Understanding Strategic Management. Oxford University Press. Hill, C.W.L. and Jones, G.R. (2012) Strategic management Theory: An Integrated Approach. Cengage Learning. Ward, J. and Daniel, E. (2006) benefits Management: Delivering Value from IS and IT Investments.  (2012) About Toyota, [URL:] (accessed: 9th July 2012)
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