A Case Study of Toyota Motor Thailand Company Limited

Topics: Toyota, Lexus, General Motors Pages: 18 (3916 words) Published: June 12, 2013
An Analysis of Strategic Management of Thai Automotive Industry: a case study of Toyota Motor Thailand Company Limited

Executive Summary

The intent of this report is to analyse the strategic management of Thai automotive industry, focus on a case study of Toyota Motor Thailand Company Limited. The relevant data and information are selected, evaluated and analysed. The results clearly suggest that this industry is very attractive to investors. The firm should compete with offensive strategies. With strong strategic capabilities and opportunities in the industry, the firm has ability to compete in exist markets and also can expand to the new markets in the near future. The firm is now the leader among other principle players, such as Isuzu, Honda, and Nissan. Therefore, it can be said that Toyota Motor Thailand will be the winner in Thai automotive industry in the future. Furthermore, its dominance is likely sustainable, because it has ability to manipulate the industry the way it want, such as the environmentally friendly and fuel-efficient vehicles. However, if see in the 3 scenarios it can be concluded that Optimistic scenario, supports from government and other environmental factors may lead to the higher growth rate in the future. Because the firm has higher strategic capabilities, it will still be the winner in the future. Likely scenario, the market growth is unpredictable because the environmental factors are uncertain. The market growth may steady at the same level. All principle players will maintain their status, so, the firm will still play as the leader. Pessimistic scenario, there will be a very high competitive industry. Principle players could improve their strategic capabilities to compete in the market. The firm may lose the leader position in the future.

Table of Contents

Executive Summary2
Table of Contents3
2.Strategic groups4
3.Market segments and strategic customers5
4.Industry growth rates5
4.1The number of sales5
4.2Export Value6
5.Firm’s performance7
5.1Production performance7
5.2Market share8
5.3Economic performance9
5.4Technological performance9
5.5Environmental performance10
5.6Social performance10
6.PESTEL analysis of the industry10
7.Key drivers for change12
7.1Political and economic factors12
7.2Technological development factor13
8.Firm’s resources and competences13
9.Five forces analysis of the firm14
9.1The threat of entry14
9.2The threat of substitutes14
9.3The power of buyers14
9.4The power of suppliers14
9.5Competitive rivalry14
10.Firm’s Strategic Alliances and supply chain management15 11.Firm’s particular financial strategies15
12.Firm’s direction15


Automotive industry is viewed by most developing countries as a major factor for their goal of industrialization. Thailand is among those countries whose domestic auto-assembly has been supported and encouraged [1].

Toyota Motor Thailand Company Limited has started its business since 1962. It is the core company of the global Toyota organizations. It is recognized as the leader in Thai automotive industry [2].

This report presents an analysis of strategic management of Thai automotive industry, focus on a case study of Toyota Motor Thailand Company Limited. Thus, Thai automotive industry is defined as the group of companies in Thailand that designs, develops, manufactures, markets, and sells motor vehicles (exclude motorcycle), and does not include industries dedicated to automobiles after delivery to the customer. Hint: “industry” refers to Thai automotive industry and “firm” refers to Toyota Motor Thailand Company Limited.

Strategic groups

The strategic groups of Thai automotive industry may be created as...

References: 1. AUTOMOTIVE INDUSTRY IN THAILAND. 2002 [cited 2011 18/05]; Available from: http://www.thaiauto.or.th/research/document/Reportauto_mar2002.pdf.
2. Toyota Motor Thailand. Sustainability Report 2010. 2010 [cited 2011 30/04]; Available from: http://www.toyota-global.com/sustainability/sustainability_report/pdf_file_download/10/pdf/sustainability_report10.pdf.
3. Toyota. Products and Services. 2010 [cited 2011 20/05]; Available from: http://www.toyota.co.th/th/product_index.htm.
4. ISUZU. IsuzuClub. 2010 [cited 2011 20/05]; Available from: www.isuzuclub.com.
5. Ford. Price. 2010 [cited 2011 20/05]; Available from: http://www.ford.co.th/servlet/Satellite?c=DFYPage&cid=1178852223955&pagename=wrapper&site=FTH&view=detail.
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9. Ernst&Young. Automotive Market in Thailand: Industry Overview. 2009 [cited 2011 18/05]; Available from: http://www.ey.com/Publication/vwLUAssets/Automotive_Market_in_Thailand/$FILE/Industry_Automotive_market_in_Thailand.pdf.
10. The Thailand Automotive Institute. statistic report records. 2010 [cited 2011 18/05]; Available from: http://www.thaiauto.or.th/Records/eng/records_menu_eng.asp.
11. TOYOTA MOTOR CORPORATION. TOYOTA IN THE WORLD 2010. 2010 [cited 2011 30/04]; Available from: http://www.toyota-global.com/company/profile/overview/in_the_world/pdf/databook_en_2010.pdf.
12. Runckel, C.W. Thailand’s Automotive Industry to See Growth Accelerate. 2010 [cited 2011 19/05]; Available from: http://www.business-in-asia.com/automotive/thailand_automotive.html.
13. Runckel, C.W. Thailand Automotive Industry Update: 2005. 2005 [cited 2011 19/05]; Available from: http://www.business-in-asia.com/auto_article2.html.
14. Kukarja, A. The Engineering Institute of Thailand. 2005 [cited 2011 17/05]; Available from: http://www.business-in-asia.com/automotive/interview_engineer.htm.
15. Reese, T. Industrial Estate Drive Thai Production and Exports Manufacturing platforms and services help companies compete. 2005 [cited 2011 18/05]; Available from: http://www.business-in-asia.com/automotive/industrial_estate.htm.
16. TOYOTA MOTOR CORPORATION. Annual Report 2010. 2010 [cited 2011 30/04]; Available from: http://www.toyota-global.com/investors/ir_library/annual/pdf/2010/pdf/ar10_e.pdf.
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