Business Environment Analysis Report: Toyota's UK Market Entry

This report provides a comprehensive business environment analysis of Toyota, focusing on its potential expansion into the UK market. The analysis begins with a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors influencing Toyota's operations. It delves into the political landscape, including international relations and government regulations, as well as economic factors such as inflation, labor costs, and currency exchange rates. The social factors, technological advancements, legal frameworks, and environmental considerations are also thoroughly examined. Following the PESTLE analysis, the report presents a SWOT analysis, evaluating Toyota's internal strengths and weaknesses and external opportunities and threats. The report then explores Toyota's marketing mix strategy, detailing the 7 Ps: product, price, place, promotion, process, people, and physical evidence. Finally, the report covers Toyota's segmentation, targeting, and positioning strategies, outlining how the company identifies and caters to its target customer segments within the UK market. The report concludes with a summary of the key findings and insights regarding Toyota's potential for success in the UK market.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1 Pestle analysis of Toyota.........................................................................................................1
2 Segmentation, Targeting and Positioning of the company.......................................................3
3 Company’s marketing mix strategy..........................................................................................4
4 Swot analysis of Toyota ........................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is very essential activity of company which concern with planning,
controlling, implementing and monitoring activities related to marketing research and promotion
of company and its products (Kolk, 2016). For better understanding the Business environment,
Toyota is taking which is the largest car manufacturing company of Japan which is planning to
expand in UK. They provide the variety of automotive products such as Vehicles, air
conditioners' car compressor, good engine, electronics car etc. Toyota launched their product by
use different promotional activity. The report will describe the pestle analysis of Toyota. This
analysis is help to company for determine the external environment of the Toyota by analysis the
political, economic, environmental, legal, social, technological factors. Furthermore, report will
describe the SWOT analysis of Toyota that describes the internal or external environment of the
company. Moreover, report will describe the 7 P’s of marketing mix of the Toyota this 7 P’s
helps to company for identify the opportunity of the company. Further report will describe the
Segmentation, Targeting and Positioning of the Toyota.
TASK 1
1 Pestle analysis of Toyota
PESTLE Analysis
Political Factor
Political factor includes the different rules and regulation by government which affects
the performance of the company. The impact of political factor on Toyota is that the poor
relationship with some country such as the relationship is not good between China and Japan. So
Toyota is not properly sale their product in Japan and China. This creates the negative impact on
the revenue of Toyota that they cannot generate the profits by selling their products in china.
Also, Toyota faces some problems related to political battle in Australia that the prime minister
of Australia has criticised the business of Toyota (Saleem, 2015). So Toyota announces that they
will stop the manufacturing in the Australia. In another side the political factor also creates the
positive impact on the Toyota that is the company moves the right country they expand their
business in UK market, because market is in good condition and the political parties has also
stable, so Toyota sale their product in UK market and increase their market shares.
Economical factor
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There are many economic factors that affect Toyota such as inflation rate, labour rate,
currency exchange rate, interest and tax rate in UK market. For example Toyota's total income is
decline due to high inflation rate in UK market. So this is creates the negative impact of the
operating income of Toyota. In 2018 Toyota the car manufacturing company contribute to
economy by £10.2 million, in 2017 company will give the 0.8 of total output, but also the
manufacturing cost is high it is 8.1 %. This creates the negative impact on the Toyota Company.
However, also the Demand of car is increasing due to new generation and customer needs.
Social factor
Social factor includes the different norms, behaviour, attitudes, needs and wants of
Society. In the car manufacturing industry, 200000 employees in car manufacture, assemble,
maintenance, supplies, servicing and in car retailing sectors. Toyota is the car manufacturing
company that they can give the job opportunity to the peoples and provides many opportunities
to employees (Virglerová, Dobeš and Vojtovič, 2016). So this is crates the positive impact on
profile of Toyota. UK CAR manufacturing market environment. In 2017 there were 1 million car
produced in the UK by Toyota. There are many consumers who purchase the car there are 1.67
million passenger who use the car on daily basis also there are 78,000 commercial vehicles' who
use the car on daily basis. So basically car manufacturing industry expand their business by sale
their product, because the requirements of car is increasing in society that creates the positive
impact on the Toyota.
Technological factor
Technological factor includes the different technology that company uses in their
business expand their business by launch the innovative products within market of UK. Toyota
also develop the technologies and improve the quality in their product, they regularly research
and makes the innovative products such as air conditioner car, electronic car also they innovate
the hybrid car for helping the environment. So this creates the positive impact on the
performance of Toyota. However, Toyota also fails in innovation when they launch the
electronic cars, customer are not satisfied with this car because, without charging the car is not
work good so customer not buy the electronic cars in UK.
Legal factor
Legal factor includes the different government policies such as employment law, equality
act, health and safety at, consumer protection act etc. In 2018, Toyota was produce 7 million car.
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Also, 85 % of car exported in 2018. So this also advantage for Toyota, because they also
generate the profits through international market, Toyota follows the consumer protection act to
develop the trust in the consumer, so consumers trust the product of Toyota which helps to
increase the sales. Also, increase the total value of exporting the car is £25.3 billion. But also
import is increased by £30.8 billion (Saleem, 2015). So deficit of trade was recorded as £5.5
million. So this creates the negative impact on the company. Also in 2017 UK imported the auto
parts by the EU27 the amount of purchasing the part is €11.4 billion. So this all is described that
the demand of car manufacturing is increases and there are lot of opportunity in the industry to
expand the future growth of the Toyota Company.
Environmental factor
Environmental factor is includes the scarcity of raw materials, pollution targets and
carbon footprint in UK. Toyota have opportunity when the oil price is declining which creates
the positive impact of the sale of company in UK as customer purchase the car due to decline the
price of oil. In other side when oil prices are high so the demand of cars is also reduces that
creates the negative impact of the Toyota.
2 Segmentation, Targeting and Positioning of the company
Segmentation
Segmentation means company define the characteristics of the customer by segment their
audience into demographic, geographic and Psycho-graphics basis. Toyota is the largest car
manufacturing company. So company focus on the high income class of group that who have
high life style and customer want to high branded cars such as Toyota Altis Sport Model and the
Toyota Fortuner.
Targeting
Targeting means company offer the product to the different customer such as men,
women, youngster, elders etc. Toyota has targeted all types of customer who have needs for car
on daily basis such as business man, families, youngster who go office, also targets the customer
who use the car as profession such as taxi.
Positioning
Positioning means how to company use the different marketing strategy to increase the
demand of the production. Toyota uses many strategies to attract the customer such as
promotional activities, pricing strategy etc. so these activities increase the demand of the cars
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because positioning is the strategy that places the products in the mind of customer. So the
positioning strategy helps to increase the customer also helps to increase the brand value.
3 Company’s marketing mix strategy
The 7 P’s of Toyota marketing mix strategy.
The 7 P’s of marketing mix is identify the different opportunity of business. Company
use this marketing mix strategy for achieving the maximum result of the company this strategy
also help to identifying the market and needs of customer.
Product
Toyota is the largest car manufacturing company in the worldwide. So they are providing
the best quality of product to their company. Toyota makes the high quality, and using the best
parts and accessories in to makes the high quality and efficient cars to run long period. Also,
company always doing and research to makes the innovative products and satisfy the consumer
by innovation they constantly improve the quality in their product. Toyota also offer the variety
of product in their product portfolio such as different auto mobiles (Vehicles, car air
conditioners' compressor, good engine, electronics car etc.) Also, they produce the different
textile machinery and material handling machinery. Toyota invests the huge amount in
innovation they produce the new product by using the new technology. So basically Toyota
serves the verity of products in worldwide (Bah and Fang, 2015).
Price
Toyota has provided the best service and product to their customer. Also, Toyota makes
the car for everyone. So they use the different pricing strategy to increase the demand of product.
So, they use the market oriented pricing and secondly value based pricing. In market oriented
pricing. Company determines that price is set according to different market conditions. For
example Toyota sold car according to the different market such as the buyer of the market want
the cheaper model as well as price, so they provide the cheaper model to the customer and in
other side the buyer of different market want the high quality of model. So they also produce the
expensive and high quality SUVs that describe the Toyota advanced auto manufacturing
technologies (Huang-Horowitz,2015). In value based pricing strategy. Toyota has decided the
prices of cars according to the values and quality of product not as cost of product and last years
of prices. So company uses these pricing strategy in their business to increase the demand of
cars.
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Place
Toyota has sale their product in all over the world. There are few places that they not
servers their product. Commonly, company sale their product through different distribution
channels such as, retailers, whole seller, dealers. Company sale their cars mainly through
retailers and dealership. Also, company said that the majority of products is sale by the
dealership. Also, retailer of the Toyota has commonly bought ans sale the pars and engenie,
accessories of the cars. Also, there have many dealers in all over the world which sale their
produc everywhere as the result is the success of the company. Also, the best dealer of the
company has SBT japan who sell the cars in online platforms (Hillary, 2017).
Promotion
Toyota uses many promotional strategy to increase the demand of the car. Also, they
organize many promotional activities that the goal of expanding the demand and sales of the
company. So Toyota uses the different promotional activities such as personal selling.
Advertising, sales promotion, direct selling etc. company investing the high amount in
advertising on television, newspapers, magazines etc. company also organize the environmental
friendly program to increase the good relations with the people. Personal selling means dealers
and other retailers promote the products. In direct selling, company promote their brand also
Toyota organizes the program that is meal per hour. So these all promotional activity done by
Toyota to increase the demand of the product.
Process
TOYOTA has uses the best process to manufacturing the cars. They reduce the waste to
maintain the corporate suitability responsibility (Huang-Horowitz, 2015). Also, company reduce
the time provide the best strategy makes better processing of manufacturing. So this is the good
for company because it’s help to reduce the cost and also makes the better working environment.
So basically its helps to increase the profit of the company as well as manage the sustainable
operations.
People
Toyota has provided the best opportunity to their employees, they value their people and
provide best training, learning facility. Also provide the knowledge about the new technology of
auto manufacturing (Huang-Horowitz, 2015). They also provide medical benefits, encouraged
the people by appreciate their work give awards, bonus, incentives etc. The employee factor is
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most important factor for all the companies. This factor helps to Toyota for accession in their
business.
Physical evidence
The packaging is the important in marketing mix. This is reflected that Toyota has used
the best packaging to present their vehicles (Bah and Fang, 2015). So customer is impressed with
the packaging and they purchase the car according to the model of car. Also, the logo of Toyota
is attracted the people this is unique so customer also like this profile of Toyota.
4 Swot analysis of Toyota
SWOT analysis
The marketing performance of Toyota is that this is the biggest car manufacturing
company in the world. The company recently concentrated on development on the new
technology to enhance the performance and increase the value and quality in the product also
increase the brand value.
Toyota increases their availability in the new markets. So they increase the advertisement
and promotional activity to enhance the availability in the market. Toyota launches the different
automobile brand in all over the world. They distribute their product in worldwide. In 2018
Toyota has sold the 8.9 million cars in all over the world, which means the demand of product is
increase by 1.2 % from the last years. So the promotional activity is succeeded which increase
the demand of product (Hillary, 2017).
Strength
 Toyota is the Successful brand which provides the variety of auto-mobile products.
 Toyota has the best distribution channel in all over the world they distribute their
products in everywhere by the help of dealership.
 Toyota has capability of launch new products and creates innovative product such as
electronic car, hybrid car etc.
Weakness
 Toyota always produces new products and creates innovation so these all activity leads
the cost of production. So the production cost in increased by these activities.
 The organizational structure is not much good as result its increase the misunderstanding
and also increase conflicts between employees.
Opportunity
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 Increase the demand of product who cannot harm the environment such as fuel-efficient
auto mobiles.
 Enter in developing country to enhance the business in European and Asian markets.
Threat
 Competitor threat, competitors provide the low prices of product to the customer which
reduce the customer base.
 Customer loyalty, customer are not loyal they switch and change their preferences
(Prajogo, 2016).
 The list of competitors include like that of Ford, Volkswagen, Hyundai, General Motors,
Nissan and BMW.

CONCLUSION
From the above study, it has been described about the market performance of the Toyota.
This concluded that the promotional activity helps to increase the brand value of the company,
also increase the demand of the product. So the advertisement is the essential part of every
organization that helps to enhance the market share of the Toyota. The report has been conduced
about the Pestle analysis of Toyota this analysis helps to company for identify the external
environment. Further report has been concluded about the SWOT analysis of Toyota. Also,
report has been concluded about the Segmentation, Targeting and Positioning of the Toyota. At
the last report has been described the 7 ps of marketing mix of Toyota. This marketing mix is
decibel the 7p's of company which means how to company use the strategy in their business and
this strategy helps the business or not.
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REFERENCES
Books and Journals
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Bah, E.H. and Fang, L. 2015. Impact of the business environment on output and productivity in
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Virglerová, Z., Dobeš, K. and Vojtovič, S. 2016. The perception of the state’s influence on its
business environment in the SMEs from Czech Republic. Administratie si Management
Public.
Saleem, S. 2015.BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
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Kolk, A. 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Charter, M. 2017.Greener marketing: A responsible approach to business. Routledge.
Miller, R.L. and Jentz, G.A. 2017. Business law today: The essentials. Cengage learning.
Huang-Horowitz, N.C. 2015. Public relations in the small business environment: Creating
identity and building reputation. Public Relations Review . 41(3). pp.345-353.
Andersson, U., Forsgren, M. and Holm, U. 2015. Balancing subsidiary influence in the
federative MNC: A business network view. In Knowledge, Networks and Power (pp. 393-
420). Palgrave Macmillan, London.
Pearson, R. 2017. Business ethics as communication ethics: Public relations practice and the idea
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