Toyota Pestle Analysis

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PESTEL Model of Toyota

Do you want to know how to analyze the SWOT of Automobile company Toyota? In the this post, we analyze PESTEL Model first...

In order to formulate a strategy view, the current business environment of the auto industry is analyzed. The business environment is mainly analyzed in the PESTEL framework and the Porter’s five forces model. In this post, We analyze PESTEL Model first, and this will help you analyse the Opportunities and Threats of Toyota…

Political Factors
In the background of the financial crisis, each country’s government carried out the relating remedy policy to protect or stimulate each important industry, including the annotative industry. For example, in end of 2008, U.S. government gave $17.4 billion short-term loans to General Motors and Chrysler to help them. In March, 2009, Toyota has asked for $2 billion loan from the Japanese Government. These loan policies may help the vehicles corporation survive in the difficult position caused by the financial crisis. In addition, the U.S. Federal Reserve Board took the quantitative easing policy, which leads the global asset price inflation to protect U.S. trade. Therefore, these policies would help each country to spur its own automotives industry and protect others country automotives corporation to occupy the market share.

Economic Factors
The automotive industry shows the recovery evidence. The General Motors paid back $8.1 billion in emergency government loans and Chrysler demonstrated that it started to produce an operating profit. In the United States, the passenger vehicle sales rose 12.3 million in 2010 compared with 11.3 million in 2009. It is the first time that the sales exceed 10.0 million since the financial crisis, September 2008. In Canada, the revenue of passenger vehicle was 1.61 million compared with 1.56 million last year, due to the new growing point light trucks. The Asian automotive market was the bright point in the past several years. For...
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