Competitive Rivalry

Competitive contender * Industry dominance by few large firms The car gondola industry - in that respect are sundry(a) competitors in this market but the superior ones include General Motors, Volkswagen, Chrysler, Ford, and Honda etc. Entry barriers prevent other entrants and set is mostly by competition and mutual understanding between take place manufacturers. * Huge setup cost and complete resource ownership * Prices die hard stable if afirm reduces increase price others follow causa and cut down their price as well, if a firm increases product price, others do not increase their price. oyota foc victimisation on continuously determination ways to reduce production costs. The company also optimized its processes to accelerate the various phases of production from initial design to production so that it could introduce saucy models faster than its competitors. Seek less expensive ways to produce suitable products -BMW Group and the Toyota Motor Corporation announced a c ollaborative suit aimed at germinateing new products and advanced-powertrain technologies. Toyota also has an agreement with Ford to develop hybrid systems for light trucks and sport utility vehicles. Threat of substitute products * There are a lot of substitutes in the automobile industry. When the price of the vehicles rises, the substitutes volition emerge, there are many types of equipment that can take the place of vehicles, such(prenominal) bus, subway, bicycle and even walking. The Hybrid Synergy Drive also must(prenominal) be evaluated using Porters model factor for threat of substitute products.Other companies could potentially enter the hybrid market by developing a sympathetic drive and neutralizing Toyotas advantage. In fact, Nissan and Honda have developed similar technologies for their sedan models. However, Toyota continues to endure the market for hybrid vehicles beca mathematical function Honda and Nissan do not have a profound impact on the market yet. In th e future, Toyota may lose their rivalrous advantage if hybrid vehicles take a bigger market dower in the automotive industry.However, before long Toyota is adding Sport Utility Vehicles (Toyota Highlander) to their line of vehicles using the HSD. By being the first to add SUVs to the hybrid market, they have currently protected their competitive advantage from substitute products. Bargaining power of Suppliers Toyota takings System which developed a network of suppliers who would supply the right quality, measurement at a point just in time for Toyota to use in building its cars. This reflects weak bargaining power on the cave in of the suppliers in terms of our model.