Prepared by:

Muhammad Shahnawaz

2008-Ag-43
MBA (4th semester)

University of Agriculture Faisalabad

 STAGES
1. INPUT STAGE
» SWOT
» PEST
» EFE
» IFE
2. MATCHING STAGE
» TOWS
» BCG
» IE
» SPACE
» GRAND
3. DECISION STAGE
» QSPM
•Toyota Motor Corporation is one of the world‘s
leading automakers, offering a full range of models,
from mini vehicles to large trucks. Global sales of its
Toyota and Lexus brands, combined with those of
Daihatsu and Hino, totaled 6.78 million

•its own 12 plants and 11 manufacturing subsidiaries

and affiliates in Japan, Toyota has 45 manufacturing
companies in 26 countries/locations, which produce
Lexus- and Toyota-brand vehicles and components.
 Market shares (February 2009) vs
Competitors

NISAN 8.1%
CHRYSLER 9.8%
HONDA 11.0%
TOYOTA 14.1%
GM 16.2%
 Toyota
Geographic Region Total Sales ( Yen in millions)

Japan North America Europe Asia Others

7%
8%
34%
14%

37%
Toyota International Portfolio
Passenger
Avalon Camry Corolla Avensis

Tarago Prius Echo

Sports
MR2 Camry Sportivo Corolla Sportivo Celica

4 W/D
Rav 4 LandCruiser Prado LandCruiser 100 Kluger

Commercial
Town Ace
LandCruiser 78 Hiace Coaster Hilux
 Indus Motor Company (IMC)
• The company was incorporated in Pakistan as a
public limited company in December 1989 and
started commercial production in May 1993. The
shares of company are quoted on the stock
exchanges of Pakistan. Toyota Motor Corporation and
Toyota Tsusho Corporation have 25 % stake in the
company equity. The majority shareholder is the
House of Habib with 50 % of the equity.
 Toyota seeks to create a more
prosperous society through
automotive manufacturing And to
sustain profitable growth by
providing the best customer
experience and dealer support."
1) CAMRY
2) COROLLA
3) CUORE
4) HiLUX
5) Imported cars
WHO ARE THE TOYOTA COMPETITORS
SWOT ANALYSIS
 Strengths

Competitive pricing.

High market share.

High durability. Easy availability of spare parts.

Aerodynamic body shape.

Elegant body features.

Comfortable ride.

Luxurious car interior.

High goodwill.

Prestigious car history.

Good resale value.

Swift distribution channels.

Updated safety features (Air-bags, seat-belts, ABS braking,Safety beams etc.)

Low fuel consumption·

 Weaknesses
•  People often criticize the breaking of the car although that
braking system of the car has been updated to ABS but still
the body rolls when the brakes are applied at high speed.

•  The cheesy of the car is not stable while doing high-speed

sharp turns.

•  The body of the car is too heavy.The rims and tires of the car
are not impressive.The cars steering is a bit light and the
driver cannot feel the road.
 Opportunities
• Making a sporty version of the car just like the
CIVIC TYPE-R,this is the faster racing version of
HONDA CIVIC .

• Extra market can be captured by introducing

Company fitted CNG Kitts in the car.
 Threats
• Swift competition from other manufacturers’ mainly Japanese and Korean car-makers. 

• High oil prices resulting in decrease in demand of fuel thirsty sedans.

•  Global inflation due to increase in population and high oil prices may result in decrease
in demand of sedans.

•  Increase in demand of other cars may result in downward trend of the brands goodwill.

•  Lower prices of Korean car manufacturers may be a threat in the future.

But presently Korean cars are not making a big impacting the market because of
reliability and resale problems. 

• Currently Pak Suzuki is posing a threat as Pak Suzuki is producing cheap cars and is
targeting the lower-middle and middle income group consumers. 

• Permission given by the Government to the overseas Pakistanis to import used cars in
Pakistan.
 IFE MATRIX R
  Strengths Weight Rat Score a
  Weaknesses Weight t Score
1 Competitive pricing. 0.03 2 0.06

2 High market share. 0.07 4 0.28          

3 High durability. 0.08 3 0.24
People often criticize the breaking of
4 Easy availability of spare parts. 0.07 3 0.21 1 the car although that 0.07 3 0.21
5 Aerodynamic body shape. 0.02 2 0.04

6 Elegant body features. 0.05 2 0.1 braking system of the car has been
  updated to ABS but still the      
7 Comfortable ride. 0.03 4 0.12

8 Luxurious car interior. 0.09 3 0.27 body rolls when the brakes are applied
9 High goodwill. 0.07 4 0.28
  at high speed.      

1          
0Prestigious car history. 0.06 3 0.18

1 The cheesy of the car is not stable

1Good resale value. 0.05 4 0.2 2 while doing high-speed sharp turns. 0.04 3 0.12
1
2Swift distribution channels. 0.02 3 0.06          
Updated safety features (Air-bags,
1 seat-belts, ABS braking,Safety
3 beams etc.) 0.05 2 0.1 3 The body of the car is too heavy. 0.05 4 0.2
1
4Low fuel consumption 0.05 3 0.15 The rims and tires of the car are not
1 ·As production of vehicle is based 4 impressive. 0.02 1 0.02
5 on foreign joint ventures of 0.05 2 0.1

Japanese origin, the product The cars steering is a bit light and the
quality is of international 5 driver cannot feel the road. 0.03 3 0.09
  standard.      
         
    1   3.03

         
 EFE MATRIX  
1
Threats
Swift competition from other manufacturers’ mainly Japanese
W
0.08
R
3
S
0.24

  and Korean car-makers.      

  Opportunities W R S          

Making a sporty version of the 2 High oil prices resulting in decrease in demand of fuel thirsty 0.09 3 0.27
car just like the CIVIC TYPE-R, sedans. But the fuel Consumption of Toyota Corolla is fairly
this is the faster racing version of   decent.      
HONDA CIVIC having 200bhp          
and a sports body frame.
3 Global inflation due to increase in population and high oil prices 0.07 2 0.14

  may result in decrease in demand of sedans.      

1 0.15 3 0.45
         

4 Increase in demand of other cars may result in downward trend 0.06 2 0.12
       
  of the brands goodwill.      
Extra market can be captured by
introducing Company fitted CNG          

Kitts in the car. 5 Lower prices of Korean car manufacturers may be a threat in 0.12 3 0.36
2 0.2 4 0.8
  the future. But presently Korean cars are not making a big impact      
          in the market because of reliability and resale problems.      
                   

6 Currently Pak Suzuki is posing a threat as Pak Suzuki is 0.16 2 0.32

  producing cheap cars and is targeting the lower-middle and      

  middle income group consumers.      

         

7 Permission given by the Government to the overseas 0.07 3 0.21

  Pakistanis to import used cars in Pakistan.      

    1   2.91
 Competitive Profile Matrix CPM

    TOYOTA   HONDA   Mitsubishi  

Critical Success Factor Weight Rating Score Rating Score Rating Score

               

Advertising 0.2 3 0.6 4 0.8 1 0.2

Product quality 0.1 4 0.4 3 0.3 2 0.2

Price Compititivness 0.1 4 0.4 3 0.3 3 0.3

Management 0.1 3 0.3 2 0.2 2 0.2

Financial position 0.12 4 0.48 3 0.36 3 0.36

Costomer Loyality 0.1 4 0.4 3 0.3 2 0.2

Global Experience 0.2 3 0.6 3 0.6 4 0.8

Market share 0.08 3 0.24 2 0.16 1 0.08

               

  1   3.42   3.02   2.34

Matching Stage
TOWS MATRIX
 TOYOTA COROLLA BCG MATRIX
STAR
QUESTION MARK
 2.0D
 Xli 1.3  GLI

+ DOGS
CASH COWS  SE Saloon
 2.0D Saloon
 Altis
 The McKinsey / General Electric Matrix

Typical factors that affect Competitive Strength of

a Strategic Business Unit:
Typical factors that affect Market
Attractiveness:
- Strength of assets and competencies
- Relative brand strength
- Market size
- Market share
- Market growth rate
- Market share growth
- Market profitability
- Customer loyalty
- Pricing trends
- Relative cost position (cost structure compared
- Competitive intensity / rivalry
with competitors)
- Overall risk of returns in the industry
- Relative profit margins (compared to
- to differentiate products and services
competitors)
- Demand variability
- Distribution strength and production capacity
- Segmentation
- Record of technological or other innovation
- Distribution structure
- Access to financial and other investment
 
resources
 
Internal External- IE Matrix
SPACE MATRIX OF TOYOTA
 Suggested strategies

• Developed and produced multi product line

for different income class.

• Design less fuel consuming engines.

• developing new brands with unique features.

 Recommendation
• Invest in other
products line .
• Make hybrid car.
?