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low market share as well as a low market growth rate i. This kind of product does not generate
cash nor consume cash in terms of investment. On the other hand, Question Marks are rapidly
growing and consume large cash investments i. However, the products have low market cash,
resulting in a net consumption of cash.i It also has the potential to gain market share and become
a star, while it could potentially lose market growth and also become a dog i. Question marks
require further understanding before further investmentsi.
BCG Growth
Share Matrix -
Toyota Toyota RAV4
Toyota Corolla
Market Share
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QUADRANT 1: QUESTION MARK
In terms of Toyota, hybrid cars such as the Toyota Prius would be a question mark in the market.
This is due to the fact that hybrids are rather new entrants in the market. Since question marks
have high growth but low market share, Toyota hybrids would be perfect examples of question
marks. The Toyota Prius is the leading hybrid in global sales in 2010 iii. In October 2010, Toyota
Prius hit 2 million in global sales and it hit 1 million in April 2011 in America iv. In September
2011, the Prius in North America sold 9,325 units and sold 93,243 units calendar year to date
(2011)v. These figures relate to the high market growth of the product. At the same time, the
market share for hybrids is relatively low compared to regular automobiles iii. As popular as the
hybrids are due to consumer awareness, tax incentives and fluctuating oil prices as well as
emission standards, the hybrid market only comprises of 1.8% of the retail vehicle market in the
U.Siii. In western U.S., the retail registrations for hybrid cars composed of 5.5% iii. This could
potentially change as the consumer awareness increases in underdeveloped regions and the
Toyota Prius could potentially gain market share.
QUADRANT 2: STARS
A star in the automobile sector of Toyota Motor Corporation would be the Toyota Camry. The
Camry has been in the market since 1982 and is the best selling car in the United States for over
the past decade. It is currently in the rising growth stage of the product life cycle. In September
2011 alone, Toyota sold 24,851 units and sold 229,521 units in 2011 to date v. This is low
compared to 30,769 units sold in September 2010 and 250,830 units sold in 2010 altogether v.
The Camry has a high market share and since the units sold are high in the US market, it requires
cash investment in order to improve the product and maintain company profits. The high growth
and market share has allowed investors to invest in the hybrid model of the Camry and this could
potentially become the next star as consumer awareness for hybrids increase to promote
environmental sustainability.
Looking at the portfolio of Toyota, the Toyota Corolla is the cash cow. Having been in the
market since 1966, the Toyota Corolla has reached its maturity stage in the product life cycle.
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This means that the relative market share for Toyota Corolla is low and the product will not grow
in the market any long. This results in the Corolla being produced for the sake of raking in
profits. Another reason the Corolla is simply a cash cow is due to little cash investments. The
Corolla does not require investments to improve the product, as its market share in the US
market is relatively low, compared to that of the Camry or the Prius. In September 2011, the
retail sales for the Corolla were 16,147 units and a total of 186,891 units in 2011 to date v. This
was lower than the retail sales in the previous year, which were 209,186 units in 2010 in total
and 21,060 units for September 2010 alonev.
At the moment, the Toyota Prius is at its beginning of the product life cycle. Having been
introduced into the market at 1997, the Toyota Prius has been one of the most successful and
profitable automobiles in the U.S. market. The Prius hybrid is the leading global automobile in
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terms of global sales, having sold over 2 million units this year, and 1 million in the U.S. alone. iv
Even though, the Prius is experiencing a high growth, it does not have a large market share at the
moment. As hybrid cars are introduced in the emerging markets such as BRIC and the product
and consumer awareness increases, the Toyota Prius has the ability to increase its market share
and growth to become a star globally.
The Toyota Camry has the potential to be converted into Cash cows. According the BCG Growth
Share matrix, a cash cow is essentially a product that has reached its maturity and has low
growth, while sustaining a high market share. The product has been in the market for nearly 30
years and has been selling successfully in the North American market. At the moment, the
original Camry is facing high growth, however as its successor the Toyota Camry hybrid gains
market share, it may become a cash cow along with the Toyota Corolla.
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Works Cited
"Auto Sales - Markets Data Center - WSJ.com." Business News & Financial News - The
Theories. http://www.valuebasedmanagement.net/methods_bcgmatrix.html
"Chart Of The Day: Compact CUVs In September And YTD | The Truth About Cars."
New Car Reviews, Ratings & Pricing, Auto News for New Models.
http://www.thetruthaboutcars.com/2011/10/chart-of-the-day-compact-cuvs-in-
"Toyota Prius Sets 1 Million Sales as Green Car Benchmark | Hybrid Cars." New Hybrid
http://www.hybridcars.com/news/toyota-prius-sets-1-million-sales-green-car-
"Toyota USA Newsroom | September 2011 Sales Chart." Toyota USA Newsroom |
Home. http://pressroom.toyota.com/releases/september+2011+sales+chart.htm
EVWorld.Inc. "US Forecast to remain Leading Hybrid Car Market 2012." US Forecast to
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i
http://www.netmba.com/strategy/matrix/bcg/
ii
http://www.valuebasedmanagement.net/methods_bcgmatrix.html
iii
http://evworld.com/news.cfm?newsid=23563
iv
http://www.hybridcars.com/news/toyota-prius-sets-1-million-sales-green-car-benchmark-29731.html
v
http://pressroom.toyota.com/releases/september+2011+sales+chart.htm
vi
http://www.thetruthaboutcars.com/2011/10/chart-of-the-day-compact-cuvs-in-september-and-ytd/
vii
http://online.wsj.com/mdc/public/page/2_3022-autosales.html#autosalesE