TOYOTA

Case study
- Carlos Padial
- Akari Yasuda
-Jeong Mingyu
-Louca Lo Mauro
-Ariuntuya Bayarsaikhan
 Contents
1. Brief introduction of Toyota / history

2. Toyota’s mission

3. Revenue channels and Cost

structure

4. Resources

5. Brands and competitors

6. Main problems of company

7. SWOT ANALYSIS
A history of Toyota

• Toyota is one of the leading automobile maker in the world.

• The history of Toyota began in the 1920s, as a manufacturer

founded by Sakichi Toyoda. The first vehicles were made in the
early 1930s.

• The company started by manufacturing compact cars and, later,

expanded to other types, such as pickups, SUVs, trucks, and
sports cars.

• Toyota is one of the largest car manufacturers in the world, with

more than 10 million vehicles sold annually.

• The company is headquartered in Japan, but it has operations in

27 countries and sells to more than 170 countries in the world.
Source: https://global.toyota/pages/global_toyota/sustainability/report/er/er20_en.pdf
Source:https://global.toyota/en/company/trajectory-of-toyota/history/
 Toyota’s Toyota’s Business Model
Mission •
•
Quality
Speed and dependability
• Suppliers
• Wide range and cost
“To attract and attain customers with
high-valued products and services
and the most satisfying ownership
experience“. Toyota’s Relationships with Customer
• Quality
• Footprint
• Delivery time
• Personal assistance
• Reputation
• After-sales
Revenue channels Cost Structure

Toyota’s revenues
lean-oriented, with low-cost operational
expenses, which include:
• Sales of products (automobiles, • Manufacturing facilities and operations
commercial vehicles, and engines) • Raw materials and components
• Sales of spare parts • Distribution and logistics
• Services of banking • Staff compensation
• Financing, leasing • Investments in technology and R&D
• Maintenance
• Commissions / amounts
• Marketing and advertising
• Sales from non-automotive businesses
Activities Resources Key Partners

• Manufacturing Human resources Manufacturers of

• Engineering Intellectual property parts and
components
• Design Partners Disturbuters
• Assembling Facilities Dealers
• Supply chain Brand Suppliers
• R&D Inventory
• Logistics
 - Japanese market:

Nissan: Based in Yokohama, Japan, 4.75 million sold units in 2020, with revenue of US$
90.8 billion.
Honda: Honda is headquartered in Tokyo, Japan, selling motorcycles and power
equipment.

- European market:

Volkswagen Group: Volkswagen, Audi, Bugatti, Lamborghini, Bentley, Italdesign), Porsche,

Škoda, Seat, Ducati, Europcar.
Stellantis Group: Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep
Toyota’s , Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall.
Competitors Mercedes-Benz: Headquartered in Stuttgart, Germany, founded in 1926, competes in the
luxury segment, sold over 2.1 million units globally in 2020, the largest brand of premium
vehicles in the world;

- American market:

General Motors: Buick, CAMI Automotive, Chevrolet, Cadillac, GMC, OnStar, Baojun,
Wuling et Faw Jiefang.
Ford: Founded in 1903 by Henry Ford, 4.2 million sold units in 2020, a revenue of US$
136.3 billion;
Tesla: Tesla sold over 930,400 vehicles in the year 2021, and over 295,300 units of Tesla’s
Model 3 and Model Y were sold in the first quarter of 2022, according to Tesla.
SWOT ANALYSIS of TOYOTA
Toyota’s Strengths Toyota’s Weaknesses Toyota’s Opportunities Toyota’s Threats

• Comfortable and • Pricing: When compared • Hybrid and electric • Electric vehicle
practical: well- to its close competitors, vehicles: As competitors: Tesla and
equipped, with a some of Toyota’s vehicle sustainability rises even other companies that
spacious trunk and models can be seen as further each year, Toyota emphasize their value
comfortable, practical, expensive for what they can keep it going with its for sustainability can be
and with technological provide to the buyer; hybrid and electric a thorn in the side of
interior space; • Conservative models. Toyota in the near
• Fuel models: Toyota’s cars future.
consumption: Toyota’s are often considered
vehicles are efficient kind of conservative,
results in terms of fuel usually linked to middle-
consumption; aged persons.
• Brand
reputation: Toyota’s
brand is a strong one
worldwide.
PESTEL ANALYSIS of TOYOTA
What are the problems Toyota is currently facing?

- In 2019, Toyota recalled nearly 3.4 million vehicles worldwide due to a malfunction
on airbags.
- In 2018, about 1.03 million Toyota vehicles were recalled due to a safety issue
related to the drivetrain.
- In 2017, Toyota recalled about 2.9 million vehicles for a possible seatbelt defect.
- Like many automotive companies, Toyota has been affected by the chip shortage
crisis, which has led to a decline in production.
- In an industry in the midst of a transition to electric vehicles, Toyota has been
criticized for its late investment in electric vehicles, although the company has
announced ambitious plans to move to full-scale production of electric vehicles by
2025.
Q1:What are the
concerns that
Toyota has with
electric
vehicles?
 Q1:What are the concerns that Toyota has with
electric vehicles?
- Delayed production of its electric vehicles: Although Toyota has recently implemented
an electric mobility strategy, it has been slow to begin production of consumer electric
vehicles.
- Lack of battery technology development: Toyota has not invested as much in research
and development of battery technologies for electric vehicles as some of its
competitors, such as Tesla and General Motors.
- Reluctance to offer electric vehicles outside of China: Toyota remains cautious about
offering electric vehicles outside of China, where the government has imposed quotas
on the purchase of electric vehicles.
- Cost issues: Batteries for electric vehicles are still relatively expensive, which may
make Toyota's electric vehicles more expensive than some of its competitors.
Lack of battery technology development

•Not investing as much as in

research and development of
battery technology for EV as its
competitors

•Less technology than other

competitors
 Capacity of batteries. FIGURE 1

About the last point, this 2 graphs show how the

batteries utility life is still really undeveloped yet in
comparison with fuel injected. Also the second figure
(2), in terms of use, the use of batteries is really low
right now for the automotive market.

Percentages of use of batteries. FIGURE 2

Sources: Springerlink.
Department of environment,
development & sustainability.
Q2: How can Toyota adapt to electric vehicle market
growth?

1. Increase its EV portfolio: Toyota should expand its electric vehicle portfolio and introduce more models
that cater to different segments of the market, including electric SUVs and pickup trucks.
2. Collaborate with EV manufacturers: Toyota should consider forming partnerships with established
electric vehicle manufacturers and technology companies to access their expertise and accelerate product
development.
3. Invest in battery technology: Toyota should increase its investment in battery technology to improve the
performance and range of its electric vehicles and make them more competitive with other EVs on the
market.
4. Develop charging infrastructure: Toyota should work with partners to develop a charging infrastructure
that can support electric vehicles, providing fast and reliable charging stations across the country.
5. Educate consumers: Toyota should invest in educating consumers about the benefits of electric
vehicles, including fuel savings, reduced emissions, and the convenience of charging at home or work.
Overall, Toyota should focus on adapting its products and services to the changing needs of consumers,
while also staying true to its brand values and reputation for quality and reliability.
Q2: How can Toyota adapt to electric vehicle market
growth?
Q2: How can Toyota adapt to electric vehicle market
growth?

Worldwide sales of Toyota

hybrids
Q2: How can Toyota adapt to electric vehicle market
growth?

1. Increase its EV portfolio: Toyota should expand its electric vehicle portfolio and introduce more models
that cater to different segments of the market, including electric SUVs and pickup trucks.
2. Collaborate with EV manufacturers: Toyota should consider forming partnerships with established
electric vehicle manufacturers and technology companies to access their expertise and accelerate product
development.
3. Invest in battery technology: Toyota should increase its investment in battery technology to improve the
performance and range of its electric vehicles and make them more competitive with other EVs on the
market.
4. Develop charging infrastructure: Toyota should work with partners to develop a charging infrastructure
that can support electric vehicles, providing fast and reliable charging stations across the country.
5. Educate consumers: Toyota should invest in educating consumers about the benefits of electric
vehicles, including fuel savings, reduced emissions, and the convenience of charging at home or work.
Overall, Toyota should focus on adapting its products and services to the changing needs of consumers,
while also staying true to its brand values and reputation for quality and reliability.
 Q3:Why should Toyota reduce the dependance on
China?
Why a company like Toyota might want to reduce its dependence on China.
• Business risks: The ongoing trade tensions between China and the US and other countries
have created an uncertain and potentially volatile business environment in China.
• Political risks: China's authoritarian regime and protectionist policies pose political risks to
foreign companies operating in the country.
• Cost pressures: While China has traditionally been a low-cost manufacturing destination,
rising wages, environmental regulations, and tariffs have eroded the cost advantage of making
products there.
• Diversification: Diversifying manufacturing, suppliers, and sales channels can help companies
mitigate risks and capture new opportunities in different markets.
• Reputation: In recent years, China has faced criticism for its human rights abuses,
environmental degradation, and unfair trade practices, among other issues.
Q3:Why should Toyota reduce the
dependance on China?
Index/Countries Vietnam Mexico Thailand Poland China

Factory wage 3.2 USD/Hour 3.7 USD/Hour 3.87 USD/Hour 5.24 USD/Hour 3.10 USD/Hour

Corruption index 42 31 35 55 45
Corporate tax 20 30 20-30 19 25

Ease of doing 70 60 21 40 31
business

Location Good Good Good Good Good

Thailand
• Thailand is Southeast Asia’s auto manufacturing hub.

• As Southeast Asia’s second-largest economy, Thailand has been moving up the value chain in manufacturing and is a
production hub for car parts, vehicles, and electronics, with multinationals.

• Many Chinese companies have relocated parts of their supply chains to Thailand.

• Many car-parts manufacturers are making their way to Thailand due to pressure from their overseas clients who are
now wary of relying too much on China and over geopolitical tensions, Bloomberg reported on April 11, citing car-parts
suppliers.
Poland Vietnam
• Poland is an opportunity for EV push into • Vietnam-foreign investments in its economy.

Europe • “With China’s economy reopening after three years of

• Car-parts makers that supply to European strict COVID-19 restrictions, there has been a flood of
companies setting up shop in Vietnam” Reuters reported
auto manufacturers are looking for
on March 16.
factory sites in Poland.
• Enquiries from Chinese firms about manufacturing
• Shenzhen-based electric vehicle maker investment in Vietnam grew exponentially in the last
BYD – backed by legendary investor quarter of last year

Warren Buffett – is planning to build its • Many Chinese companies that have moved to Vietnam
first EV factory in Europe. include Growatt, a Shenzhen-based power storage firm,
and Hangzhou First Applied Material, a solar panel
component maker.
Q4:What are Toyota's problems with the European car
market?

In 2021, Toyota has challenges in the European market, including:

- Competition: the European market is highly competitive, with many established automakers and new entrants.

- Environmental regulations: Europe has strict environmental standards, forcing automakers to invest more in electric and
hybrid vehicle technology.

- Brand image: Toyota is often seen as a reliable and durable, but not very exciting, car brand. Yet European buyers also
attach great importance to aesthetics and emotion in their choice of car.

- Diversity of tastes and needs: The European market is very diverse according to countries, regions and driving habits. It
is therefore difficult for Toyota to offer models adapted to all needs.

- Sales price: Toyota cars are often more expensive than their competitors for similar features, which leads some buyers
to opt for other brands.

https://single-market-economy.ec.europa.eu/sectors/automotive-industry/environmental-protection_en (european commission

stating environmental regulations)
Q5:Should Toyota try to expand their business in the
EU market or back up from EU market?
There are several factors to consider when deciding whether to enter or exit a market, such as
competition, market demand, regulatory requirements, and economic conditions.

• If Toyota sees growth potential and competitive advantage in the EU market, it may choose to
enter or expand its presence.
• The EU market is one of the world's largest automotive markets, accounting for a significant share
of global vehicle production and sales. Additionally, consumers in the EU are increasingly
demanding eco-friendly and sustainable vehicles, which aligns with Toyota's vision and strength in
hybrid and electric vehicle technology.
• On the other hand, if Toyota faced significant challenges in the EU market, such as declining
demand, trade barriers, or unfavorable regulations, it might consider withdrawing or reducing its
operations.
• For instance, Brexit and recent regulatory changes such as the EU's new emissions standards
have disrupted the automotive industry's supply chain and increased costs for automakers
operating in Europe.
• Ultimately, the decision to enter or exit a market depends on a company's strategic goals, financial
performance, and market analysis.
SWOT ANALYSIS of TOYOTA in Europe
Toyota’s Strengths Toyota’s Weaknesses Toyota’s Opportunities Toyota’s Threats

• Strong focus on research • Lack of competence in • Wage increases in Europe • Brexit

and development (R&D) autonomous vehicles • New technological • Thousands of jobs at risk
advancements • Tariffs
• Recognisable and • Negative publicity due to
• Trend towards the want and • Government insecurity
valuable brands large number of vehicle need of hybrid and electrical
• Toyota’s production returns vehicles
in certain European
system • Poor brand portfolio • Population increase in
countries
• Highly competent • Late entry into the Europe • Tax increases
company in electrified electric vehicle industry • Rise of social media as a • Rise in fuel costs
vehicle production form of advertisement • Shift in Europe towards a
In 2022 healthier lifestyle
• Toyota’s 2050
• Toyota brand consolidates its
environmental challenge 2nd place as best-selling
• Historically Toyota passenger car brand in
produce highly Europe for a second year
dependable vehicles running
• electrified vehicle sales
increased by +14% year-on-
year to 718,608 units

https://studylib.net/doc/25238962/a-strategic-review-of-toyota-in-europe
https://newsroom.toyota.eu/toyota-motor-europes-market-share-increases-to-a-record-73-in-2022-09-points-year-on-year/
Source:
https://arstechnica.com/cars/2021/07/toyota-bet-wrong-on-evs-so-now-its-lobbying-to-slow-the-transition/
https://www.bloomberg.com/news/articles/2023-05-10/funds-urge-toyota-to-boost-disclosure-around-climate-lobbying
(for this one the end is interesting)
https://studycorgi.com/toyota-companys-problems-fixing/
https://strategicmanagementinsight.com/swot-analyses/toyota-swot-analysis/
(Toyota’s Swot)
https://asia.nikkei.com/Business/Automobiles/Toyota-suspends-plant-in-Changchun-China-due-to-COVID-lockdown
https://asia.nikkei.com/Spotlight/Coronavirus/Japanese-automakers-hit-by-China-s-zero-COVID-lockdowns
https://asia.nikkei.com/Spotlight/Coronavirus/Japanese-automakers-hit-by-China-s-zero-COVID-lockdowns
https://studylib.net/doc/25238962/a-strategic-review-of-toyota-in-europe
https://studylib.net/doc/25238962/a-strategic-review-of-toyota-in-europe
Thank you for your attention