Strategy Memo for Toyota Prius
STRATEGY MEMO
SITUATION: LAUNCH OF TOYOTA PRIUS – WORLD’S FIRST HYBRID CAR
BPSM
PGDM: 2009-11
TEAM: A9, MICHAEL PORTER
MEMBERS:
9020: KASTURAY ADITYA MANOHAR
9025: MOLKANTI PARIMAL
9036: PURNA CHANDRA SHEKAR
9076: GOKUL KRISHNAN B V
9100: ROHIT N
9103: SANTHOSH K.S.
SUBMITTED TO: Prof. GOVINDA SHARMA
DATE: 27-JULY-2010
Table of Contents
COMPANY DESCRIPTION 3 Toyota: History and Growth 3 Toyota Mission 5 McKinsey 7S Model for Toyota 6
THE ENVIRONMENT ANALYSIS OF JAPAN AND USA 11
AUTOMOBILE INDUSTRY ANALYSIS 15 Geography-wise Analysis 15 Automotive Industry Life Cycle 16
COMPETITOR ANALYSIS 18
SWOT ANALSIS 19
NEED FOR THE LAUCH OF PRIUS 20 Competition Analysis for Prius 20 Porter’s Five Force Model for Prius 21
Toyota Prius: A Blue Ocean Strategy 23
SKELETON FOR FINAL STRATEGIC MEMO 25
REFERENCES 26
COMPANY DESCRIPTION
Toyota: History and Growth
The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota.
Toyota Motor Corporation is headquartered in Toyota City, Aichi and in Tokyo. In addition to manufacturing automobiles, Toyota provides financial services through its Toyota Financial Services division and also builds robots.
The Toyota Motor Company received its first Japanese Quality Control Award at the start of the 1980s and began participating in a wide variety of motorsports. By the early sixties, the US had begun placing stiff import tariffs on certain vehicles. The Chicken tax of 1964 placed a 25% tax on imported light trucks. In response to the tariff, Toyota began building plants in the U.S. by the early eighties.
In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the Toyota Motor Corporation. Two years later, Toyota entered
SITUATION: LAUNCH OF TOYOTA PRIUS – WORLD’S FIRST HYBRID CAR
BPSM
PGDM: 2009-11
TEAM: A9, MICHAEL PORTER
MEMBERS:
9020: KASTURAY ADITYA MANOHAR
9025: MOLKANTI PARIMAL
9036: PURNA CHANDRA SHEKAR
9076: GOKUL KRISHNAN B V
9100: ROHIT N
9103: SANTHOSH K.S.
SUBMITTED TO: Prof. GOVINDA SHARMA
DATE: 27-JULY-2010
Table of Contents
COMPANY DESCRIPTION 3 Toyota: History and Growth 3 Toyota Mission 5 McKinsey 7S Model for Toyota 6
THE ENVIRONMENT ANALYSIS OF JAPAN AND USA 11
AUTOMOBILE INDUSTRY ANALYSIS 15 Geography-wise Analysis 15 Automotive Industry Life Cycle 16
COMPETITOR ANALYSIS 18
SWOT ANALSIS 19
NEED FOR THE LAUCH OF PRIUS 20 Competition Analysis for Prius 20 Porter’s Five Force Model for Prius 21
Toyota Prius: A Blue Ocean Strategy 23
SKELETON FOR FINAL STRATEGIC MEMO 25
REFERENCES 26
COMPANY DESCRIPTION
Toyota: History and Growth
The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota.
Toyota Motor Corporation is headquartered in Toyota City, Aichi and in Tokyo. In addition to manufacturing automobiles, Toyota provides financial services through its Toyota Financial Services division and also builds robots.
The Toyota Motor Company received its first Japanese Quality Control Award at the start of the 1980s and began participating in a wide variety of motorsports. By the early sixties, the US had begun placing stiff import tariffs on certain vehicles. The Chicken tax of 1964 placed a 25% tax on imported light trucks. In response to the tariff, Toyota began building plants in the U.S. by the early eighties.
In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the Toyota Motor Corporation. Two years later, Toyota entered