Toyota South Africa has moved into a new era in vehicle manufacturing in South Africa as a fully-fledged member of the Toyota Motor Corporation (TMC) global production network.
Following a five year multi-billion Rand plant modernisation and revitalisation programme Toyota’s Prospecton manufacturing facility, just south of Durban, boasts the latest in world class automotive manufacturing technologies. Many of these are proprietary TMC systems only recently released for use in Toyota plants outside of Japan.
March the 4th 2008 marked a significant new chapter in the history of Toyota South Africa as the company became firmly established as a true volume exporter of vehicles in TMC global proportions.
Using the Five Forces model of Michael Porter is a very elaborate concept for evaluating Toyota's competitive position. Michael Porter provided a framework that models an industry and therefore implicitly also businesses as being influenced by five forces. Michael Porter's Five Forces model is often used in strategic planning. Porter's competitive five forces model is probably one of the most commonly used business strategy tools and have proven its usefulness in numerous situations when exploring strategic management model.
The auto manufacturing industry are considered to be highly capital and labour intensive. The major costs for producing and selling automobiles include:
Labour - While machines and robots are playing a greater role in manufacturing vehicles, there are still substantial labour costs in designing and engineering automobiles.
Advertising - Each year automakers spend billions on print and broadcast advertising, furthermore, they spent large amounts of money on market research to anticipate consumer trends and preferences.
Replacement Parts Production and Distribution - These are the parts that are replaced after the purchase of a vehicle. Air filters, oil filters and replacement lights are examples of products from this