Toyota Prius

1. What little purlieual calculates affected both the initiative genesis and flake contemporaries models of the Toyota Prius? How rise has Toyota dealt with these factors? The micro environmental factors atomic number 18 those forces close to a company, yet outside its internal environmental, that warp the ability of a avocation to mete out its clients, forces such as customers, suppliers, competitors and other business that assistor influence a businesss ability to sell, distri preciselye, promote and develop increases or services.In regards the Toyota Prius case, the factors that the company dealt with be Customers Toyota launched the offshoot generation in 2001 with a small, cramped and non attractive elevator carmobile into a grocery were the big SUVs were dominating the business. They were deliverance to the food marketplace a confused run off, environmentally friendly and high tech vehicle. In my opinion, Toyota took a risk launching a vehicle that was fitting future needinesss that customers were going to have with the forthcoming scotch situation (gas price increment).Toyota launched the present moment generation ameliorate the fuel enjoyment and improving the lacks on the first stochastic variable style and capacitance. The biggest success was to anticipate the customer needs. Suppliers Without the support of suppliers, Toyota would not have be able to launch the first generation. Toyota call for the suppliers to be onboard on this risky spue in which they were developing a novel technology that requires a high heavy(p) investment up front with a high risk of failure.Competitors First generation did not have direct competitors since it was the but hybridisationisation vehicle on the market. I consider that the challenge for Toyota on the first generation was to create a market box for this impudently vehicle belief. The scenario was dissimilar for the chip generation were the market niche existed already a nd fresh competitors were acquire into the business. Honda with the hybrid polite, Mercury with the Mariner and Ford with the pretermit were trying to bugger off their first step on this vehicle category but being a step back Toyota in price and efficiency. 2. Outline the major(ip) macro environmental factors demographic, economical, natural, technological, political and ethnical that have affected Prius sales. How well Toyota dealt with each(prenominal) of these factors? Demographic American population has been festering at around 10% since 2000 as well as the GDP per capita. This expire to an increase on the demand for simple machinemobiles and to a more(prenominal) than demanding costumer re consecrateable to his higher(prenominal)(prenominal) purchase power. Economic Toyota Prius was launched in regular army in a growing economic environment but right originally a scenario were gasoline price would setoff wage hike considerably.Looks like Toyota did not answ er against trends and fads but did a good long term economic analysis going ahead in respect his competitors that but wait until gasoline price started rising to start taking fuel ingestion into account as an important factor during the vehicle development. Natural December 1997 manhoods leading nations meet japan to discuss Kyoto protocol. Several months before, Toyota introduces in lacquer the first hybrid vehicle. Consumers start to channelise into account environmental factors on their purchases. other factor that push consumers toward lower consume vehicles is the gasoline price rise that occurs in 2004.Smaller SUVs, cars and hybrids see their demand increase due to these two natural factors. Toyota, being mindful of this factors, changed his targeted costumer investing $40 million dollars campaign on this set of customers, the environmental conscious. Technological late 90s is considered a high-tech boom. This may be the reason why Toyota targeted first on early adopt ers and techies who ar attracted by cars advanced technology. Political many another(prenominal) states are rewarding the car owners with impose breaks amounting to thousands of dollars.Furthermore, just about states government gave further impose breaks, in some circumstances complementing the national tax break. There were also some eco-friendly organizations involved in this incentive punt such as Google, Timberland and Hyperion Solutions providing employees as much as $5,000 toward the purchase of hybrids. some(prenominal) states level gave permission for the hybrids to use carpooling lanes which dispense with people to travel more rapidly to work. Lastly, lots of insurance companies offer discounts to hybrid cars. Cultural since the last decade, society is getting more sensitive in regards environmental issues.This is being reflected on customer decisions that are looking for environmental friendly product regular(a) at a higher price to them. 3. Evaluate Toyotas trade dodge so far. What has Toyota done well? How might it improve its strategy? trade strategy consist of 4 Ps which are product, price, place and forwarding Product Toyota brought to the market a new vehicle concept that fitted into the new economic, neighborly and political scenario. Toyota identified the lacks on the first generation and incorporated the improvements on the second generation improving also efficiency.Price Toyota Prius with Honda Civic were the only two Hybrid models in which customers were recovering the price premium and starting signal to save money after 75. 000 miles. invest Toyota was aware of the difficulty of introducing a new concept to the market. Lack of customer info could induce to a mistrust toward the product. Toyota amaze emphasis training specifically to the dealerships to make sure customers were being properly informed. In addition, Toyota opened a site on the web where customers could share their questions and modifications they made to their Prius.Promotion Toyota did not put too much labour on advertising this vehicle. Toyota used the dealerships as a communication line to the customers. In my opinion, the biggest success of Toyota comes from the long term strategy they planed that come up with a vehicle that fit perfectly to the changing economic and social context. In addition to the low consume advantage the Prius was, they continued improving their models to provide customers with the said(prenominal) comfort and capacity of vehicles that were dominating the American roads by increasing the capacity on his second generation for instance.Customers, in general, are aghast(predicate) to invest in new concept products due to a mistrust on their performances. Battery life and tutelage were the biggest concerns that customers were having. other automakers, such as Renault are pass to the customers a systems in which they take the indebtedness of the battery life. Automakers own the batteries and customer s just pay a monthly rent for the maintenance and replacement. I consider that this strategy offers more confidence to the new customers to invest on this new technologies. 4. GMs marketing director for new ventures, Ken Stewart, says if you motivation to get a lot of hybrids on the road, you put them in vehicles that people are buying now. They seems to summarize the U. S. auto makers approach to hybrids. Would you agree with Mr. Stewart? Why or why not? American market is being originally dominated by big SUVs and pickup trucks. Statistics pomp this customer preferences. The American auto makers are trying to provide to customers a more efficient vehicle keeping the current confront and performances.Obviously, the efficiency achieved is not the same as the one other auto makers are achieving by developing littler hybrid vehicles. In my opinion, what they are doing is to attain a short term dissolvent to the current customer needs sooner of anticipating the future ones which are smaller cars with even higher fuel efficiency. So, if the macro environment continues pushing auto makers toward the efficiency cars, they go away continue being ahead the others because even if they are trying to improve efficiency, it is not the main goal for them right now.