Toyota the Launch of Aygo
1) What is competition like in the minicar segment of the European automobile industry? What do we learn about the nature and strength of the competitive pressures Toyota Motor Europe faces from doing a five-forces analysis?
Toyota Motor Corporation is one of the biggest car manufacturers in the world. From 2000 to 2005 the sales units have increased from 2.5 million to 7.97 million. With 35 percent of the total market capitalization in the automobile industry, the Japanese firm is becoming more than a serious competitor for General Motor which is the world largest car manufacturer. In spite of this excellent situation, Toyota is still developing his firm around the world by setting ambitious goal such as “to reach 15 percent global share in 2010”. Developing in Europe is one of Toyota strategy to meet this goal. The brand has launched a first European car, the Toyota “Yaris” which was such a success that the company decided to repeat the experience but in the minicar automobile segment.
This segment exists for a long time in Europe. Nevertheless it became popular only for few years. Several factors such as economic uncertainty, high unemployment and increasingly high fuel prices have boosted this segment in Europe. Today the big automobile brands are fighting to gain market shares and increase their sales in this specific segment.
To know how the competition is in this segment and to learn about the nature and strength of the competitive pressures TME faces we have to do a five-forces analysis.
Rivalry among competing sellers
The minicar segment is a fragmented industry and price competition is likely to be severe. The rivalry is intense because of the number of competitors in this segment. Fiat, Hyundai, Renault, Nissan, MCC, Volkswagen, Audi, BMW, Peugeot and Citroen are all big brands competing on this segment. The rivalry is intensifying year after year because of the increasing number of competitors entering in this segment and because they are
Toyota Motor Corporation is one of the biggest car manufacturers in the world. From 2000 to 2005 the sales units have increased from 2.5 million to 7.97 million. With 35 percent of the total market capitalization in the automobile industry, the Japanese firm is becoming more than a serious competitor for General Motor which is the world largest car manufacturer. In spite of this excellent situation, Toyota is still developing his firm around the world by setting ambitious goal such as “to reach 15 percent global share in 2010”. Developing in Europe is one of Toyota strategy to meet this goal. The brand has launched a first European car, the Toyota “Yaris” which was such a success that the company decided to repeat the experience but in the minicar automobile segment.
This segment exists for a long time in Europe. Nevertheless it became popular only for few years. Several factors such as economic uncertainty, high unemployment and increasingly high fuel prices have boosted this segment in Europe. Today the big automobile brands are fighting to gain market shares and increase their sales in this specific segment.
To know how the competition is in this segment and to learn about the nature and strength of the competitive pressures TME faces we have to do a five-forces analysis.
Rivalry among competing sellers
The minicar segment is a fragmented industry and price competition is likely to be severe. The rivalry is intense because of the number of competitors in this segment. Fiat, Hyundai, Renault, Nissan, MCC, Volkswagen, Audi, BMW, Peugeot and Citroen are all big brands competing on this segment. The rivalry is intensifying year after year because of the increasing number of competitors entering in this segment and because they are