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Situational Analysis Report about Toyota in Australia - Essay Example

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Situational Analysis Report about Toyota in Australia

This paper will focus on present information about the market situation, Toyota share in Australia market, target market, trends that bear on the company’s product line in future, and identify the (SWOT) strengths, weaknesses, opportunities, and threats facing the company. Introduction In Australia, the head office for Toyota Motors Corporation is located in Melbourne where all the manufacturing activities are conducted. However, the marketing and sales are done in Sydney. The Australian branch deals with manufacture of vehicles such as Camry and Aurion. However, Toyota Australia is also concerned with importing other models, which include Corolla, Toraga, Kluger, HiAce, HiLux, LandCruser, Yaris, Torago, RAV4, and Prius. Additionally, Toyota Australia is concerned with selling of other brands such as Lexus. Toyota Australia is performing considerably well. It was the best vehicle exporter in 2008 when it exported 101,668 cars. Toyota Australia markets its vehicle to more than 20 countries located in different parts of the world. Market Situation Toyota Australia leads the automobile industry in Australia in manufacture of environmentally friendly vehicles. One of the greatest successes was success of hybrid technology, which was used in Prius. Currently, Toyota Prius, the most advanced hybrid system in the world is the most selling product for Toyota Australia. After the 2008 economic crisis, has been experiencing decreased sales in vehicle sales resulting in reduction in profits. However, Toyota Australia remains the best performing Automobile manufacturer in Australia. It has a market share of about 23.7%. However, the sales are expected to grow as the global economy recovers from the recession. After the recession, the Australian dollar weakened resulting in increased prices for all imported cars (Deloitte, 2012). Toyota Australia is the largest automobile exporter in Australia and mainly exports its vehicles to Middle East, Pacific Islands, and New Zealand. However, Toyota Australia is facing grave competition in Middle East due to entry of automobile companies from China into this region. Although the market condition continues to become tougher, Toyota Australia is performing considerably well. The best performing car model include Corolla, Yaris, Corolla, and HiLux (IBM, 2011). Increase in the demand for car over the recent past has resulted in growth in market for Toyota Australia. Target market is the people working in the cities. The Toyota automobiles are affordable to people in middle and lower classes. However, Prius is quite expensive but being efficient in fuel use makes it favorable for different groups (IBM, 2011; Deloitte, 2012). Macro Environmental Situation Macro environment is the economic external market environment and the broad trends that may bear on product line (Woof, 2011). Increase in completion has obligated Toyota Australia to create more fuel-efficient cars, which emit fewer wastes hence environmentally friendly. This led to manufacture of Toyota Prius, which is considered the greenest car since it has reduced pollution and greenhouse effect. However, this model is facing competition from Honda Civic Hybrid and Ford Fusion Hybrid Car. The major competitors of Toyota Australia include Ford, GM, Mercedes, Volkswagen, BMW, and Honda (Mullins, Walker, & Harper, 2009; Silva, 2006), Politically, Australia is a democratic country. Australia is ...Show more


Situational Analysis Report about Toyota in Australia Date Executive Summary Toyota Motor Corporation (Toyota Australia) deals with manufacture and sale of automobiles. Toyota automobiles are widely preferred due to their great efficiency in the oil system, which makes them cheap to maintain, and more environmental friendly…
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