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Toyota External Environment Analysis

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Positioning
Toyota’s uses both diversity and low cost strategies to gain a economical advantage over their competitors in the automotive industry. The market opportunity that Toyota uses is a broad one that covers almost every type of customer’s automotive needs and desires. Toyota is able to target such a large market that suits everyone. Toyota has four wheel drive trucks and SUVs for the outdoor activities and those who live in harsh weather areas, hybrid models like the Prius or BEV/FCV for the eco-friendly customers that are interested in saving the environment, beside standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges. From the low price Toyota Corolla line of cars to the high priced …show more content…

Evaluating the external environment, the PESTLE9 charter is used as tools to consider the main factors, which affect the business that drives change. This can identify dominant effects in each area, which is a key success factors.
• Political
Political environment is most associated with government policy such as taxation policy and trade tariff. Since Toyota imports some parts components from other countries, needs to pay for the tariff. Consequently the cost of products will be increased, if government increase import tariff, leading to cost fluctuation of cost.
• Growing environmental concerns are forcing governments around the world to introduce harsher regulations for the automotive industry. These include strict regulations by increasing taxes on cars with higher CO2 emissions, increased taxes for cars with higher carbon dioxide emissions. Toyota's main markets (US and Europe) are affected by the above the strongest.
• Low - emission cars benefit from tax incentives, such as free road tax, lower insurance prices, free parking, carpooling and so on.
• BRIC8 economies are gaining substantial power against of those of the Western

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