Japan: Toyota and the Hybrid Car Industry Can Toyota Continue to Maintain and Advance Its Position in the Hybrid Car Industry?

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BMA5112 Asia Pacific Business

Japan: Toyota and the Hybrid Car Industry Can Toyota Continue to Maintain and Advance its Position in the Hybrid Car Industry?

By:

Du ThiXuanHoa Edwin Choy NarminTartilaBanu
Wai Yean Tze

1

Contents 1.0 2.0 2.1 Executive Summary ........................................................................................................................... 4 Introduction ...................................................................................................................................... 4 Japan’s Macro-Environment ......................................................................................................... 5 Economy................................................................................................................................ 5 Politics ................................................................................................................................... 5 Foreign Direct Investment (FDI) and Globalization............................................................... 5 Innovation ............................................................................................................................. 7 Business Groups .................................................................................................................... 8 Culture................................................................................................................................... 8

2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 3.0 3.1 3.2

Japan’s Car Industry .......................................................................................................................... 9 Japan - the world’s largest car exporter ....................................................................................... 9 Analysis of Japan’s competitive advantage in car industry (using Porter’s Diamond Model) .... 10 Sustainable Factor Conditions: ........................................................................................... 10 Dynamic Demand Conditions:............................................................................................. 10 Related and Supporting Industries: .................................................................................... 11

3.2.1 3.2.2 3.2.3 3.3 4.0 4.1 4.2 4.3 4.4 5.0 5.1 5.2

Comparison of Japan’s National Diamond with Other Countries’ Diamond .............................. 14 Toyota Motor Corporation (“Toyota”) ............................................................................................ 17 Toyota’s Origins .......................................................................................................................... 17 Toyota’s Management Philosophy: The Toyota Way ................................................................. 17 Toyota’s Venture into Hybrid Cars .............................................................................................. 18 Analysis of Toyota’s Overall Business Strategy ........................................................................... 19 Hybrid Car Industry ......................................................................................................................... 20 General history of hybrid car industry ........................................................................................ 20 Current status of hybrid car industry .......................................................................................... 21 2

6.0 6.1 6.2 6.3 6.4 7.0

Analysis of Toyota’s Hybrid Car Strategy ........................................................................................ 22 Strategy diamond ........................................................................................................................ 22 Comparison ................................................................................................................................. 25 Toyota’s (Perceived)...
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