Some countries have made some new laws of tariff to protect domestic industry and business. For instance, in Russia, the government makes a new policy in tariff to control the exporters to its country. (Raise the tariff in import cars from other countries)
Internal Analysis
Sustainability in Three Areas
-Technology (achieving sustainable mobility)
Technological innovations hold the key to the environmental preservation and economic growth that are essential for Toyota to contribute to a prosperous society and the earth. Accordingly, Toyota is conducting research and development aimed at the realization of an automotive society that can coexist with the earth, or sustainable mobility.
As you can see from the table 1, it shows trends and forecast of world energy demand by fuel. Obviously, renewable and nuclear energy would be used widely. So based on the vision of "Zeronize & Maximize", Toyota aims to minimize the negative impact that vehicles have on the environment, while maximizing their positive aspects, such as convenience, comfort, enjoyment, and excitement. To improve environmental performance, one of Toyota manager said “with respect to power trains, by 2010 we will have installed in all our vehicles a new series of gasoline and diesel engines and transmissions to boost fuel efficiency. In addition, we are currently increasing efforts to further evolve hybrid technology and expand our hybrid line up."
-Manufacturing (implementing "Sustainable Plant" activities)
Sustainability is also being pursued at the plants that drive Toyota manufacturing operations. In July, Toyota initiated "Sustainable Plant" activities with the goal of creating production sites that are in harmony with their natural surroundings.
Toyota conducts its "Sustainable Plant" activities globally on three broad fronts. The first energy reduction through the development and introduction of low CO2-emitting production technologies and daily activities. The second is energy conversion utilizing photovoltaic and other renewable energy sources. The third is tree-planting to foster involvement with local communities and ecological preservation.
-Society (Environmental Activities for a Sustainable Future)
Toyota engages in a wide range of nurturing society activities at home and abroad as it seeks to become a trusted global corporate citizen and to contribute to the sustainable development of a prosperous society.
Toyota implements measures on a national and international level in its efforts to achieve a sustainable level of global environmental preservation. Recognizing the importance of ongoing efforts deeply rooted in local communities, they proactively contribute to society in each country and region through their development programs for forestry, human resources and the local community.
-Resource Saving
To achieve efficient use of finite resources, Toyota industries promotes design and development that implements the 3Rs ( table 2 ); reduce materials used by utilizing them more efficiently, reuse products and parts that have completed their service life and recycle resources.
Implementing 3R Design for all products
To ensure easy implementation of reducing, reusing and recycling of resources. Starting from the development and design stages they pursue the rationalization of rawmaterials usage and the safety and efficiency of dismantling process. Serval examples illustrate the scope of our efforts in this area. For their new two-wheel drive shovel, a certified environmentally friendly product, Toyota industries utilized recycled materials for the counter weight and re-evaluated the structure of the headlights to improve ease of recycling. ( Cho, F. 2007 )
-competitive advantage
Toyota is outstanding at manufacturing equipment and serving a source of competitiveness for each business and protecting against any outflow of proprietary. They are also utilizing their strength in creating manufacturing equipment for the quick startup of operations at oversea production bases. Based on these strengths Toyota focus on raising the production technology capabilities of the industries.
External Analysis
Porter’s 5 forces
Threat of New Entrants
In the past, people thought that the American automobile industry and the Big Three were safe; however, this did not last long time when Japanese automobile companies like Toyota went to American market, and took a lot of` market share of the North American companies. The reason for that is cars are big consumption for every family, and people consider various elements before their buying behaviour. That is rational, so consumer take the car with high quality and lower price home. The point is the threat o new entrants is high if the new entrants have the high technology to manufacture and they control the cost very well.
Power of Suppliers
The power of the suppliers is low because that normally automobile supplier rely on the car manufacturer very much. The supplier will has no business if the previous car manufacturer decided to change their supplier. As a result, suppliers hold very little power.
Power of Buyers
Power of buyer is huge. There are a number of automobile manufacturer all around world, that means consumers have various alternatives. In addition, nowadays, the consumers are very price sensitive, if they think your car is expensive, they turn to look at the Japanese. If they think your Japanese car is expensive, they turn to look at the cars made by China or India. In a word, consumer can influence the automobile companies to change their cars.
Availability of Substitutes
This force become higher today. That not only means people will bur other companies’ cars instead of buying your cars. Toyota should be careful with the fact that more people choose the public transportation from several reasons. Like it’s not easy to park private car when you go out, and the cost of having a car goes up. That different factors makes the more substitutes.
Competitive Rivalry
Almost every automaker got loss during this financial crisis even the Toyota. But toyota become the top-seller in the period because their sales didn’t went down too much. That’s reasonable due to the fact that company invested a lot into developing some environmental and less gas consuming cars. Additionally, automakers avoid price-based competition, but now the competition has arisen. discount, buy today pay tomorrow, and many strategies are used by the automakers in order to survive.
PESTLE
Political
Toyota had a lot of help from the local government, including tax breaks. For example, a city in China wants a foreign company to invest in the city. Toyota builds a factory in there and employs many workers from local. As a result, the local government will reduce the tax as a reward to Toyota.
Economics
Opening a factory will bring the economic benefits to the local. A Toyota factory means more than 1000 employees. And those employees will purchase from the salary they earned from the Toyota. Consequently, that stimulates our economy.
Social and Cultural
The environment is getting better since Toyota move into that area. Toyota promised that they will make the community cleaner.
Technology
Toyota keeps R&D in order to meet their goals that make human live better. Like Prius, the hybrid vehicles to reduce the gas consumption.
Appendix
Table 1
References
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Ishikawa,T (2007) How is the business successful? www.toyota.com (accessed on 14,04,2009)
Toyoda, T (2008) Implementing 3R Design for all products www.toyota.com (accessed on 15,04,2009 )
