Automotive assembly
and distribution of Toyota
Based on porters 5
forces analysis for Toyota use in automotive assembly and distribution are
following:
New entrants
In the auto
manufacturing assembly and distribution of Toyota is the high threat of new
entrance. New entrants cannot enter the market easily because new requires huge
capital investment. Besides that, the high demand from buyer because Toyota is
brand loyalty among the buyers.
Suppliers
Bargaining power of
supplier is low. The suppliers do not own power to change the price threat of
substitute such as the price or specifications of the vehicle is lack of as
cooling, electrical, braking, fuel supply system favors. The third type of
automotive business was companies which operated as a full-fledged car
manufacturer that including research and development.
Buyer
Bargaining power of
buyer is moderately high in automotive assembly industry. The buyer have low
switching cost. Buyer will choose the Toyota because high-quality and buyer
also actually are fragmented.
Substitutes
The substitutes will
high. The substitutes such as motorcycle, public transport and bicycle.
Rivalry
Competition between
existing industries is likely be high. Basically, the competitors of Toyota are
Honda, luxury car, local car and transportation. Alternatives types of
transportation almost always cost less and sometimes are more environment
friendly rivalry among existing competitors.
No comments:
Post a Comment