EXTERNAL ANALYSIS OF THE AUTOMOTIVE INDUSTRY

External Analysis of the Automotive Industry



External Analysis of the Automotive Industry

Introduction

The presented SWOT analysis has the purpose to expose the diverse internal and external characteristics and factors that have shaped Toyota´s strategic development and its role as a global retailer.

Opportunities

Major threats and opportunities facing Toyota as a company

Since 2005, the Japanese auto Enterprise Honda decided to introduce to the Mexican market the Civic hybrid. Nowadays is the automobile more ecological that is commercialized in Mexico. Therefore, enterprises as Smart (German) and Toyota (Japanese) decided to enter as competitors with two hybrid models. Smart just in July of 2008 announced the introduction of the Micro Hybrid model FORTWO that will be available in September 2008. Toyota will introduce the Camry Hybrid in the first months of 2009, and will also amplify the branch of the micro hybrid Prius.

In contrast, United States firms still resist bringing hybrid models to Mexico, but analysts say that with the lounge of this hybrid models, they will not last to commercialize these new products. It´s known that GM manufactures in Mexico the Veu Saturn (hybrid model), Ford manufactures Fusion and Milan of Mercury, but these three models are just for the United States market.

The introduction of hybrid models represents a strong opportunity in Mexico, especially to affront the high oil prices and the threatening imports of “junk cars” that enter to Mexico from United States and Canada.

Changes in the US consumer behavior

GM has been severely affected in its global car sales because of the economic recession that United States is passing through. For the first half of 2008, GM is below of its Japanese rival, Toyota.

GM informed that their car sales went 3% down in the first semester (4.54 million) In the other side, Toyota got up 2.2.% ...