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TOYOTA FIRST CAR

 ENVIRONMENTAL FACTORS THAT
AFFECTED THE PRODUCTION OF
TOYOTA PRIUS

Company Name

Syed Fawad Hussain

MBA (Marketing)
HISTORY IN MAKING
• 1992
Toyota Motor Corporation announced the “Earth
Charter”
• 1993
Partnership for a New Generation of Vehicles
(PNGV) announced.
• 1997
The Toyota Prius was introduced to Japanese
market.
• 2000
Toyota released the Toyota Prius, the first hybrid
four-door Sedan available in the United States.
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ENVIRONMENTAL FACTORS
 Success of an organization depends
upon its adaptability to the
environment.
 Environment analysis is helpful for
survival and prosper the business
activities.
 Organization environment influence
the functioning of the organization
system.
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ENVIRONMENTAL FACTORS
 Analysis on internal and external
factors can produce substantial
amount of information.
 The environment includes outside the
firm which can lead to opportunities
for or threats to the firm. (Glueck and
Jauch)

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ENVIRONMENTAL FACTORS
External factors
 Political Legal Forces
 Economic Forces
 Technological forces
 Competitors
 Customers

Internal Factors
 Beliefs
 Structure

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 POLITICAL-LEGAL FORCES
 Political influences relate to
government or constitutional policies
that may affect your business.
 Automobiles were subject to many
governmental regulations.
 Government also encouraged
manufacturers to increase the fuel
efficiency.
 CARB (California Air Resources Board)
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 ECONOMIC FORCES
 Economic factors affecting the
production and sale of hybrid
vehicles.
 Expensive entry into foreign markets.
 Increased globalization of the industry
intensified competition.

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 TECHNOLOGICAL FORCES
 Technological changes may create
new opportunities for the firm, or
threaten the survival of a product,
firm, or industry
 Technological forces can affect Prius in
two ways. It can be:
• A potential opportunity
• A potential threat

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POTENTIAL OPPORTUNITIES
 Long term strategic benefit
 Environmental protection
 Innovative changes
 Nickel-Metal hybrid battery

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 POTENTIAL THREATS

 Reliability of Prius
 Manufacturing cost
 Technical problems
 Development of batteries

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 POTENTIAL THREATS

 Overheating
 Cost of battery
 Warranty & service support issues
 Regenerative braking system
 Development of insulated gate
bipolar transistors (IGBTs)

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 COMPETITORS
 The biggest fear
 Competitor’s hybrid strategy
 Competitor’s demonstration of hybrid
system
 Changed image of TMC
 Hybrid vehicle from other companies,
such as the Insight from Honda.

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 CUSTOMERS

 Demand for Prius

 Consumers price estimation
 Consumers perception to reduce
pollution

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 BELIEFS

 Aggressive target
 Mass production
 Which strategy of launching should be
adopted?
 Aggressive launch
 Smoother launch

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 CULTURE

 Employees are trained to solve

problems.
 Inculcation of scientific methods.

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Title

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