Porter's Five Forces Analysis Of Toyota

Worldwide automobile organization like Toyota depends on vehicle prices, per capita disposable income, fuel prices and product innovation. For supplier, vehicle prices stem from material and equipment costs, with higher steel and plastic prices raising manufacturers ' purchasing costs and, ultimately, retail prices. Last five years, automakers have been plagued with high steel and plastics prices, which have raised manufacturing costs and product prices. For the demand side, Income determined affordability for consumers to buy car. As incomes increase, the propensity to purchase motor vehicles increases as they become more affordable
Incentives are used to generate sales during periods of low economic growth. Over the past five years, there

8) Media
a. Media can mean printed, televised or online media. If you can use that media well, people know about your product, and you can give more service by online media. Media is a good tool to make success.
Porters Five Force Analysis for Toyota is a tool to find out profitability of industry, develop an accurate and firm strategy and allow to analyses how that five force affect in industry and their competition in industry.

- Bargaining Power Of Buyer o If the buyer power is strong, they do have the power to demand lower price or higher quality. o Bargaining power of buyer is strong for Toyota because they have too many competitors which have similar car aiming for similar market (Example: Nissan, Honda, Ford) o So, they have too many choices and easy to change to other brand. o Due to rising oil prices, customer tend to seek out more fuel-efficient and it’s make increase the demand of hybrid car that offer cheaper alternatives for operating the vehicle with high quality. o But cost cutting practice in Toyota operation lower the customer power and put their car into more advantages position compare with their competitor.

- Bargaining Power Of

o According to automotive manufacturing market, Toyota are working hard and their production are worldwide global and that mean Toyota is still leading and succeeding. o Also according to this manufacturing trend, customer still loyal to used car market.

- Rivalry among existing competitor o Main determinant on how competitive and profitable of industry. o It will get high when barrier set low, threat of substitute is high. o The rivalry among existing competitor is high for Toyota o The major competitor such as Nissan, Honda, they already balance and have their own level that is the same with Toyota. o Government make there is more competition by law which protect their own product o Lack of differentiation opportunities also will cause high rivalry and the companies will compare to each other constantly. o However Toyota always try to differentiate their product service to increase the customer loyal to their brand o Focus on innovation and forward intelligent has brought Toyota into the lead of hybrid technologies and automation of manufacturing facilities. o Toyota still lead in producing low cost car and that make other brand to change their approach to operation. o Even Toyota introduce the low cost car, the natural disaster has put pressure to additional cost for