NEED FOR THE LAUCH OF PRIUS
Toyota has utilized its strengths like R & D, Cash Surplus and Future oriented leadership in the launch of Prius hybrid car. It has strategically converted the threats it faced like rise in fuel prices and emission standards with the idea of launching Prius. Prius, being a hybrid car, is fuel efficient as it utilizes electric batteries along with gasoline. This reduces fuel consumption and also the emissions. The Prius also utilizes the opportunities at that time like growing customer requirement for a fuel efficient and environment friendly car. Thus, the launch of Prius is a great strategy to be adopted by Toyota. We as CEO of Toyota, give a green signal to develop and launch Prius, first in Japan (around 1997) and then in US and other parts of the world.
Competition Analysis for Prius
As of now in the automobile sector, hybrid technology is still an untapped segment. Many companies like Honda, Nissan, and General Motors are doing research on that technology to come up with a car. In future they might come up with a hybrid car. Till now there is no competition for Prius. It will be the first mass produced hybrid vehicle, so it will have pioneer advantage in the market.
This does not mean there is no competition for Prius. As conventional cars are ruling the market, how far buyers are ready to accept this hybrid car, is a question that cannot be answered now. Toyota’s own cars like Corolla, Camry or other cars can also compete with the new car as they have strong association with Japanese.
Porter’s Five Force Model for Prius
Bargaining Power of Suppliers:
The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods or services.
In the case of Prius, Supplier bargaining power is likely to be low. Why because
* The product is differentiated one and cannot be replaced by substitutes easily.
* Over a period of time Toyota has established good relations with suppliers....