Toyota Analysis

Strengths

Good recognition of the Toyota brand

Toyota holds the second position in Australia as auto manufacturer with a market share of around 20%. Prius is the world's first mass-produced petrol-electric hybrid veicle. Toyota is a strong brand with a reliable and high quality image.

Advanced technology with lots of technical features

Toyota Prius is built with a new technology with energy-efficient design. The hybrid engine is environmental friendly combining the power of an electric motor with a petrol engine and as result reducing consumes and the amount of pollutants. The new model offers good autonomy, space and performance with a huge range of high tech optionals. Furthermore as a statement for quality the company offers 8 years warranty for the battery pack.

Good fuel economy

In the last years the price of petrol has been getting even more higher. Hybrid cars allow the customers to save money in low regimes when the car uses the electric engine. It is the perfect solution for the city drivers.

Social Responsibility

Prius helps to save the environment with lower emission of pollutants and is seen as the first car environmental friendly in the market.

Low competition

Toyota Prius is the first hybrid car commercialized in Australia and has only one competitor in its sector.

Weaknesses

Still high price

The new technology used by Prius is still expensive due to the low production and consequently the price of this hybrid car is still too high (from $37,000) and less competitive than the other cars in its category.

Furthermore Pius has a questionable cost/performance ratio compared to other cars in its class and some consumers might choose the old proven reliable petrol-engine car or even diesel over hybrids.

In addiction the car has been criticized on account of aesthetics which result slightly older in style comparing with the trends.

Possible development issues

Hybrid is a new technology that is not "tried and true" and little is known about potential development issues. This could result in technical problems and product recalls that may damage the image of the company.

Long delivery time

The production is not so high and for this reason the waiting time for purchasing a Prius is still too long cause the car has to be ordered from overseas. This thing might make the consumers to choose another alternative in the category.

Opportunities

First mover's advantage

Being the first commercially mass produced hybrid automobile in the world (since 1997) and in Australia (since 2001) may give to the product the opportunity of the first mover leading to a head start in the competition to gain market share. In addiction Australia is a market with great future potential and few competitors in this sector.

Association with environmental politics

The recent emphasis put on Social Responsibility could lead to an incredible advantage of Toyota to join associations with the government and environmental politics. In most countries owners of hybrid cars enjoy special tax reductions or special regulations. It's an opportunity for the company to be part of governmental policies that encourage alternative energy sources.

Environmental Statement

Trend toward environmentally friendly vehicles are enforced both in the public and private spheres. Some companies offer incentives to their employees to purchase hybrid cars, and most governmental policies offer tax deduction opportunities and privileges to owners (Wikipedia Online Encyclopedia)

Furthermore Prius takes advantage on celebrity publicity. Hollywood stars buy the car to make an environmental statement, and influent organizations encourage its purchase by using it in glamorous events such as the Oscars (Toyota.com)

Economies of Scale

Because the cars are presently produced on a standard mass-production assembly line, the costs will be significantly cut, offering larger profit margins and better price offers for the final consumer.

Rising fuel price

The ever increasing price of petrol could be a significant incentive for the consumers to switch to hybrid technology in order to save money.

Threats

Increasing competitivity on the market segment

Although the competition in hybrid market is still low, eapecially in Australia, it has to be considered that in the future other car manfacturers with strong brand recognition could enter in this segment as they are already doing in other countries and the increase of competitors woul lead in more aggressive

battles for the market share.

Development of public transportation

Public transportation is an indirect threat as it can't replace the convenience of a car. However the government's continual promise to improve public transportation as seen as an increase in the number of people catching public transport in capital cities

Petrol cars still on the run

The still increasing and developing market of petrol cars is a dramatic threat for the improvement of the hybrid automobiles. In fact the higher performance and the even more low consumes of the new cars as diesel still represents strong competitors in this segment. Furthermore the petrol cars in the same class of Prius are significantly lower in price. In addiction to this there are very strong

pressures in the market due to the petroleum cartels.

Risk of product recalls

Due to the new technology