Toyota-Aygo

TOYOTA-Aygo

Executive Summary

Toyota Motor Europe, has in 2005 begun production of the Aygo model in a joint venture plant with PSA, in the Czech Republic.

In order to deal with a highly competitive industry the company has capitalized on its technological leadership and production expertise, and created a low cost, low CO2 emitting car, while fashionable with youth appealing features. Given the present economic situation in Europe, and the urgent need   for environmentally friendly vehicles, this is a very promising project. The so called A segment is a fast growing market segment in Europe and Toyota has all the strengths required to successfully compete in it.

Tables of context

Executive Summary……………………………………………………..p.1

Tables of context…………………………………………………………p.2

Five Forces Analysis……………………………………………………..p.3-6

Global or Multi-Country & Type of International Strategy………….p.7

Key Success Factors…………………………………………………….p.8

SWOT Analysis………………………………………………………….p.9-12

TME's Joint-Venture with PSA………………………………………..p.13

Recommendations………………………………………………………p.14

Conclusion……………………………………………………………....p.15

Bibliography-Reference List…………………………………………..p.16-18

Five forces analysis

[pic]

Every firm has to be profitable in order to going concern. The determinant of how profitable a firm is,   is connected to the profitability of the industry in which it operates. According to Porter's analysis (1985), an industry is profitable, when the five competitive forces allow it to earn, on average, more return in its investments than the cost of capital. The five competitive forces, define how profitable an industry is because they affect the elements of return in investments. These elements are the prices, costs and required investment of firms in an industry (Porter M. 1985). The five forces do not affect equally any firm in any industry. The same applies for Toyota Motor Europe (TME).

Competitive Rivalry

Concentration and Balance... [continues]

Read full essay