Current Market Conditions Competitive Analysis

The automobile industry is changing constantly. The technology today is advancing at an aggressive rate and automobile manufacturers are creating more fuel efficient and economical vehicles. The Toyota Company is always competing with other manufacturers to make the next big thing. The strategic planning group is proposing the new SUV Family Edition. The Toyota Family Edition will provide a more fuel efficient and family friendly SUV option for consumers. This proposal will provide a history of Toyota and how Toyota is always trying to stay a step ahead and keep families a top priority. This proposal will also explain how the Toyota Family Edition will compete with the other manufacturers and overcome the factors of competition.

History of Toyota

Toyota is a Japanese company that came to the United States around the 1950s. Their presence expanded even the more in 1980s. Toyota is ranked as one of the top companies for its durability and reliability. In 1935 the company unveiled their first car the A1 and in the 1950s the company started to expand and branch out to smaller cities and countries. Toyota’s customers love their high value on the quality and dependability. The Toyota Corolla was introduced in 1968, was one of the best selling cars in the Unites States and remains a best seller today. Approximately 30 million cars were sold in 140 countries. More than 17 Toyota models earned the insurance institute for highway safety award in 2012. For the new 2014 Family Edition, Toyota will continue to uphold the standards of the last 50 years and continue to be the top pick for the most favorable cars by consumers and investors.

Market factors

Toyota operates in an oligopolistic market structure, “a market structure in which there are only a few firms and firms explicitly take other firms’ likely response into account” (Colander, pp. 361 Para 2). There are few major automobile manufacturers and government guidelines make it difficult for new...