Toyota

Synopsis

Automobile industry has always been a very competitive market with technology and marketing strategies playing very crucial roles. With the recent hike in gasolene prices, recession and product recalls, the industry is undergoing a series of drastic changes.

This case analysis looks at the issues and challenges that the automobile industry is facing. The analysis covers the major players in the industry with emphasis on Toyota. The case analysis takes a deeper dive into Toyota’s core competency, marketing strategies, its strengths and weaknesses.

During these tough times does Toyota have the capability to break the shackles and emerge as a market leader. The saying is - When the going gets tough; the tough gets going. This case analysis provides some areas that Toyota can look into to march past the recent setbacks and regain its brand value.

1. Problem

Before we look at the recent problems that the automobile industry in US has been facing let us look at the primary market, the market leaders and various playes in the US automobile market. The automobile market is dominated by the big five – General Motors, Ford, Toyota, Chrysler and Honda. Out of these 5 GM, Ford and Chrysler are American companies, Toyota and Honda Japanese. [Refer to Appendix A for the market share of the Big 5 and market share trend]. Other companies in the market are Nissan, Hyundai, Kia, BMW, Mercedes, Audi etc. [Refer to Appendix C detailed sales split up]. Automobile industry mainly has 3 segments – Cars, Light Duty Trucks, SUVs which inturn has many sub divisions. [Refer to Appendix B for the sales split up by segments].

Automobile industry has been impacted by a string of events that made the competition more fierce. If in 2008 it was the skyrocketing fuel prices that triggered the decline, it was recession that posed problems in 2009. 2010 looks to be the year that will go down in history as the year of automobile recalls. Though recalls have been across the...