Moreover there is a feeling of belongingness for The Big Three among Americans. Hence the market is highly competitive.
The report makes an attempt to develop a marketing plan that would help Toyota to regain its market share and become a market leader once again. A detailed analysis of the internal strengths and weakness, market scenario, competition analysis is done to identify the gap and accordingly new ways of meeting these gaps through an effective market plan is devised.
Bargaining Power of Suppliers: Toyota believes in the philosophy that it is as strong as its weakest supplier. Hence Toyota believes in building long term relationship with its supplier’s and also goes to the extent of providing support and technical guidance which promotes a “win-win” situation for both. Hence Toyota’s suppliers are always loyal and also strive to deliver the best quality of materials (Lean Enterprise Institute, 2006).
Toyota does not change suppliers based on cost considerations because it upsets the entire working model of Toyota. Toyota’s success depends on strong alliances with its vendors. It is something that Toyota lives with every day (LaFlamme, n.d.).
Bargaining Power of Buyers: Buyers in U.S. are very well informed about the automobile market and the latest cars. A wide variety of choices is available to the customer. Some of the big names include General Motors, Ford, Chrysler, BMW, Hyundai, Mitsubishi etc. With information available easily in the internet customers can dictate terms. They can negotiate on price, mode of payment, more discounts on used cars, free accessories etc. Hence bargaining power of buyers is high (Gatton College of Business & Economics-a, n.d.).
Industry Rivalry: US market has been dominated by the Big Three namely, General Motors, Ford and Chrysler. In addition there are others like Nissan, Hyundai, Volkswagen, Mitsubishi and BMW having significant