Business Essentials Project: Toyota Hybrid Car Industry Analysis

This project provides an analysis of the Toyota hybrid car industry, focusing on its market position and competitive forces. It examines the concept of hybrid and electric vehicles, highlighting their technological advancements and market potential. The project explores the business sector, identifies key competitors like Tesla and Honda, and analyzes competitive forces such as rivalry, buyer power, supplier power, threat of substitution, and new entrants. It also considers the geographical consumer base, including countries like China, the USA, and EU nations, and addresses potential issues impacting business performance. The project aims to provide insights into the organizational and operational aspects relevant to the Toyota Group's success in the hybrid car industry.

Threat of new entrants: it is a weaker competitive force that may impact
overall performance of the cited auto mobile manufacturing entity.
As per various surveys and analysis, it has been found that big countries like China,
USA and nations of EU are major consumers of electric and hybrid vehicles. These
nations are very supportive for the use of electric and hybrid vehicles.
The electric and hybrid automobile manufacturing sector faces many issues that can
impact the business performance and growth to a greater extent
Different organisational and operational aspects will be taken by Toyota Group into
effective consideration.
TOYOTA HYBRID CAR INDUSTRY
Hybrid and electric cars are major concept that has been taken in consideration by many auto mobile companies. The
hybrid car sector helps in proper rise in placing of a company in technological and auto mobile market in an effective
way. This is however a new concept that is been covered by only few car manufacturing firms.
Concept of hybrid cars
The concept of hybrid cars and electric vehicles is comparatively new in automobile market sector. These are
highly developed and technological vehicles that operate on both fossil fuel and electricity with equal ease. However,
these vehicles are at present in their starting phase and require extensive research and development.
Business sector
The electric automobile business sector is one of the fastest emerging markets that have high potential and
chances of growth. High costing of petrol, diesel and other carbon-based fuels increase in pollution and rise in
environmental concerns that have been major driving factor.
Competitive players and forces
Some major firms like Tesla Motors, Honda Motor Co, Ford Motors are operating within this industrial sector
and can prove as major competitors to Toyota Group. Thus, the cited firm is required to effectively manage these
competitors’ as one of the market leaders (Cherubini, Iasevoli and Michelini, 2015).
Competitive rivalry: It is a strong force that impacts company's
performance.Toyota Group will face major competition while handling business
operations and actions that help in superficial support to increase the overall
performance
Bargaining power of Buyers: Hybrid and electric cars tend to be quite
expensive as compared to normal automobiles.
Bargaining power of suppliers: Suppliers are one of the major parts of cited
firm's stakeholders and support in effective execution of its business operations
and functions.
Threat of substitution: the chances of substitution are very meagre but prevails
in the hybrid and electric auto mobile sector.
References
Budde, B., Alkemade, F. and Hekkert, M., 2015. On the
relation between communication and innovation
activities: A comparison of hybrid electric and fuel
cell vehicles. Environmental Innovation and
Societal Transitions, 14, pp.45-59.
Cano-Kollmann, M. and et.al., 2018. Burying the Hatchet for
Catch-Up: Open Innovation among Industry
Laggards in the Automotive Industry. California
Management Review, 60(2), pp.17-42.
Cherubini, S., Iasevoli, G. and Michelini, L., 2015. Product-
service systems in the electric car industry: critical
success factors in marketing. Journal of Cleaner
Production, 97, pp.40-49.