Toyota Psa Case Study - Aygo

1827 words 8 pages

Toyota Motor Corporation is a Japanese multinational corporation. It is currently the world's largest automaker.


"Toyota Motor Corporation is a company devoted to enhancing the quality of life for people around the world by providing useful and appealing products" (Toyota Motor Corporation, 1994).
Its mission has not changed much in the past few years, for the current mission of Toyota can be characterized as becoming the world's leading vehicle manufacturer, which means that it expects to sell more cars than any competitors, whilst setting benchmarks on product quality and production efficiency. Toyota also aims at providing good quality cars at competitive and affordable prices in order to well establish
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Developing countries such as India or China are notably famous for being attractive markets for carmakers, because these countries have an important population whose majority does not own a car yet.



The European car industry can be segmented according to the different classifications of car. The following segments are therefore relevant: mini-cars, lower medium, upper medium, executive, luxury, sport or utility cars.
Moreover other segments in the transport industry can be substitutes to car industry segments. For example, train or plane can replace cars of medium and big size, or intra city transports such as metro, buses or cable cars can substitute mini-cars or cars in general.

Porter’s five forces

Rivalry among competitors : very strong
There are many competitors on the automotive market from different countries and with different targets on the market. The industry can be considered as a capital intensive industry, with high fixed costs. The market grow slowly; competitors try to attract new clients and gain market shares from their rivals with aggressive offensives like discounts and advertising. Threat of substitutes : relatively low
Substitutes are not a real threat for the automotive industry. They consist in train, subway, bicycle and walking. These substitutes are not very convenient for the consumer, for they do not enable him to reach his exact point of