Business Plan for Automatic Driving Cars

Situational Analysis
Political factors Strict government rules pertaining to tax and pollution control
Economic factors Economic slowdown and thereby decrease in customer spending
Social factors Demand for advanced features: Changing customer preferences
Technological factors Technological advancements are taking place frequently
Legal factors Compliance with laws and legislation is must
Environmental factors Focus on sustainable operations for improving brand image
Business Plan
Strengths
Largest manufacturers
Undertaking advanced
technology
Loyal customer base
High market share
Company overview: Toyota Motor
Corporation
Japanese automotive manufacturer
Headquartered in the Aichi, Japan
Market leader for hybrid electric vehicles
Product Overview
 New unique business idea for automatic
driving cars.
 Highly advanced robotic features
 Charge the battery automatically from the
friction created while running
 Eco-friendly car
Weaknesses
Weak management and relationship
with suppliers
Opportunities
By focusing on and adopting highly
advanced technology firm can
improve brand image.
Threats
Facing threats from
competitors
Changing regulations and
customer preferences
impose threat in front of
the firm.

Porter five force analysis
Marketing mix
Product Automatic cars with unique
features Price Cost plus pricing strategy Place
Will be sold through physical stores Promotion
Social media marketing, advertisements on
television and newspapers
Bargaining power of
suppliers: High
Competitor analysis
 Volkwagen
 Ford
 Hyundai
Threat from substitutes:
high
Bargaining power of
buyers: low
Threat from new entrants:
Low
Segmentation, targeting and
positioning
Segmentation
Toyota will segment customers based
on their income
Targeting
Differentiated targeting strategy
Positioning
Innovation and advancement
Break-even analysis
Particulars Formula Figures
Number of units required to sell
Fixed cost + desired profit
margin / contribution per unit 6250
Competitive rivalry: high
Monitoring and Control
Top executives of Toyota will monitor and evaluate
reports
Test controls will be implemented
Focus will be placed on assessing defaults and taking
corrective measures for improvement

Notes
INTRODUCTION
Entrepreneurial venture could be defined as organisation which takes place the innovation and
opportunities at primary attention for producing social or economic value. Entrepreneurs are the people who have
business idea and undertakes the responsibility for accomplishing that idea. This idea is usually new product or
service which encompasses new product or service which would be based over existing model. They undertake
the complete responsibility for their business from risks to all the rewards. Present report will discuss about the
new business plan that would be undertaken by the company. The business plan will provide about the new
product that will be brought by the company
Executive Summary
The automobile industry is changing constantly with new inventions and innovations. It is laying
increased importance over the companies to bring something new and unique to the market that will help them in
gaining competitive advantage over others. Toyota is planning to bring new robotic cars. Toyota is big
manufacturer in the world of cars and the consumers are demanding new innovations from the regular technology
(Wilberforce and et.al., 2017). The robotic cars have zero emissions as they do not use fuel and run on electric
charging. The most unique feature is that the car can run without any driver and take the passenger to the
destination without manual driving. This will be complete automatic car that will run on sensory detectors. It will
be the first car that will run without driver and take the passenger to destination.
Company overview
Toyota Motor Corporation is multinational Japanese automotive manufacturer that is headquartered in
the Aichi, Japan. In 2019 is was 10th largest company by revenues in the world. It is 2nd largest manufacturer of
automobiles after Volkwagen based on unit sales. It is market leader for hybrid electric vehicles. It is also leading
market in vehicles of hydrogen fuel cell. Lexus passenger and Toyota car models have achieved milestone of 15
million in January 2020.
Product Overview
Toyota along with electric cars has now brought a new unique business idea for automatic driving cars.
The cars will have highly advanced robotic features that are successfully tested by the companies. These are
electric cars that will put a stop to environment pollution and provide relief over increasing fuel prices. The
automation system will also charge the battery automatically from the friction created while running. This will
also reduce the charging of car at short intervals (Magnusson and Wellington, 2017). Cars will get high
recognition in market as other automobile companies do not have such technology and it is new innovation in the
automobile sector.
Situational Analysis
Internal and external factors influencing the company are analysed using PESTLE and SWOT analysis
PESTLE Analysis
Political: Company operates in several countries and therefore has to comply with all the political regulations.
There is lower political interventions in the automobile industry but strict rules are there regarding the pollution
control. The trade policies of governments may impact the functioning of Toyota.
Economical: The economic state of the world has slowed down due to several forces. Inflation is increasing in
countries with lower growth in real income (Toyoda and Nakamura, 2018). It is decreasing consumer spending
and decreasing the revenues. The monetary and fiscal policies of economies are being framed for increasing
investments. Economic state may affect sales.
Social: With growing automation demand of society is also increasing. They are demanding new and advanced
features that make their life more easier. The new and advanced features will help the company to meet the
demand of consumers properly. Toyota is most trusted brand for its quality products and it needs to retain that