This case study will look in depth the introduction of hybrid car Prius by Toyota. Toyota launched its first hybrid car Prius in 1997 with technology that uses both gas and electricity to run, making it cleaner and more efficient. Toyota hoped to capitalize on growing concerns for rising fuel prices and environment safety and launched Prius early in the market, much ahead of other automakers.
Toyota Prius, world's first standard-production hybrid-electric vehicle combines a 1.5 litre four-cylinder petrol engine and a 33 kilowatt electric motor. It starts with the electronic motor and uses a nickel metal hybrid battery which recharges by regenerative braking. Prius switches between electronic motor and internal combustion system depending on the speed of driving which results in delivering higher fuel economy and lower emissions compared to regular cars.
With a limited life expensive nickel battery, high cost of service, spare parts and the fact that it’s not a power car, it’s fuel efficient feature may not attract consumers. Hoping to reduce these cost issues, which may take years, Toyota strategically approached Government Agencies for tax incentives on grounds of its clean fuel and high mileage. The US Government gave $2000 reduction in taxes for owning a hybrid car and UK Government offers reduced car taxes on initial purchase and also exempt the electric car drivers from the city congestion charges.
1) What Micro Environmental Factors Affected The Introduction And Re-Launch Of The Toyota Prius? How Well Has Toyota Dealt With These Factors?
Micro environment is a factor of the Marketing Environment and it consists of the issues that, in one way or another, affect the company's ability to serve its clientele in a close and direct way. This includes factors such as customers, suppliers, competitors, shareholders, employees and media (among others). Having this in mind, it could be safe to state that the micro-environmental factors affecting... [continues]
Cite This Essay
(2012, 01). Report on Toyota. StudyMode.com. Retrieved 01, 2012, from http://www.studymode.com/essays/Report-On-Toyota-900024.html
"Report on Toyota" StudyMode.com. 01 2012. 01 2012 <http://www.studymode.com/essays/Report-On-Toyota-900024.html>.
"Report on Toyota." StudyMode.com. 01, 2012. Accessed 01, 2012. http://www.studymode.com/essays/Report-On-Toyota-900024.html.