Toyota: Driving the Mainstream Market to Purchase Hybrids
Intro/Situation
Toyota's goal: 1) become the largest worldwide automaker 2) grow by nearly half during next decade 3) be the leader in the hybrid market 4) make all of its vehicles with a hybrid option by 2012
Situation: consumers are becoming more environmentally conscious; gas engines will not meet future regulations; government providing tax incentives and passing laws to encourage/require cleaner vehicles.
Advantages: past success in producing hybrids, superior fast production systems; predicted HEV growth high
Issues/Decisions to be made
? Should Toyota continue to focus on cars (as its Prius was successful and the Rav was not), or should they compete against American automakers in trucks and SUVs as well?
? How can they move hybrids from a niche to a mainstream product?
? How can they overcome consumer misperceptions?
? How much should they sacrifice short-term profits for future gains?
? How much should they invest in researching other technologies?
Questions not answered in case
? Does all of the car require special service, or only the engine?
? Are all automakers under intense short-term shareholder pressure like Honda?
? Do consumers perceive hybrids as being as safe and reliable?
? When are tax incentives that encourage ownership of heavy trucks for business use going to be phased out?
Recommendations
1. Attain leadership by having highest quality hybrids ? build on already established quality superiority. Emphasize in communications that hybrids ...