Assignment
Major forces impacting Toyota’s environment
Introduction
The automotive industry in Australia, like many others, is a highly competitive market. Toyota is one of the world’s largest motor companies, and is highly successful in the Australian market. To be successful and maintain profitability, Toyota must constantly monitor the external environment and respond to any changes. Several environmental forces impact on Toyota’s environment, including economic, competitive, technological, sociocultural, legal/regulatory and political. They also have a major influence on Toyota’s marketing strategies and initiatives.
The current global financial crisis, combined with rising fuel prices and ownership costs has resulted in a rapid decline of the automotive industry. Global vehicle sales are at their lowest level in a long time. There is also growing environmental awareness in the global community. This is reflected in widespread media coverage of climate change and global warming, and also in government policies. Consumers are concerned about the harmful impact of burning fossil fuels and the release of greenhouse gases on the environment. Toyota responded to this concern in 1997 by becoming the first company to mass produce a hybrid, petrol-electric car, the Toyota Prius. The Prius combines industry-leading fuel economy and environmental friendliness with cutting edge technology.
Toyota’s strategies for the Prius are also influenced by some other forces. Sociocultural forces are the result of changes in people’s lifestyles, attitudes the general makeup of the population. They affect buying behaviour and willingness to spend on certain products, so are crucial to understand. Toyota is targeting families and people looking to save on rising costs of car ownership.
Technological forces
Technology is the application of knowledge and creativity in solving problems and increasing efficiency. In most industries, capitalising
Introduction
The automotive industry in Australia, like many others, is a highly competitive market. Toyota is one of the world’s largest motor companies, and is highly successful in the Australian market. To be successful and maintain profitability, Toyota must constantly monitor the external environment and respond to any changes. Several environmental forces impact on Toyota’s environment, including economic, competitive, technological, sociocultural, legal/regulatory and political. They also have a major influence on Toyota’s marketing strategies and initiatives.
The current global financial crisis, combined with rising fuel prices and ownership costs has resulted in a rapid decline of the automotive industry. Global vehicle sales are at their lowest level in a long time. There is also growing environmental awareness in the global community. This is reflected in widespread media coverage of climate change and global warming, and also in government policies. Consumers are concerned about the harmful impact of burning fossil fuels and the release of greenhouse gases on the environment. Toyota responded to this concern in 1997 by becoming the first company to mass produce a hybrid, petrol-electric car, the Toyota Prius. The Prius combines industry-leading fuel economy and environmental friendliness with cutting edge technology.
Toyota’s strategies for the Prius are also influenced by some other forces. Sociocultural forces are the result of changes in people’s lifestyles, attitudes the general makeup of the population. They affect buying behaviour and willingness to spend on certain products, so are crucial to understand. Toyota is targeting families and people looking to save on rising costs of car ownership.
Technological forces
Technology is the application of knowledge and creativity in solving problems and increasing efficiency. In most industries, capitalising