If you look at the analysis from the Five Forces Model, you can conclude that it would be best for Toyota to invest in new technology. Nissan and General Motors just promoted their new electric-powered vehicles on the market, and Ford is planning to start selling an all-electric version of the Ford Focus later this year.
But even though the degree of rivalry is high, Toyota sticks to their hybrid technology and they keep developing. But it might be a good idea for Toyota to start investing in a new technology that would enable them to produce fully electric cars.
Because of this, it is easy for other companies to satisfy the same demand. If they do this, the company will become the leader in this industry because no other company has used this technology already and they will keep the leadership in green car technology.
Also, the barrier of entry is relatively low. The reason why the Prius was such a success and other hybrid models were having troubles to get buyers, is that the buyers of the Prius want to make a statement about themselves.
As mentioned in the second paragraph, Toyota had some setbacks to deal with. This model contents the following forces: They want to show people that they are more environmentally aware then other people.
But although they had to deal with some setbacks, Toyota is planning to develop the hybrid technology even further. Secondly, the threat of new entrants is also high.
Therefore, it is of big importance that Toyota starts investing in a new technology for that the stay the leader in this industry.
Toyota Toyota is the leader of the hybrid technology with its Prius. They had to re-callhybrid cars because of some brake problems. To analyse whether Toyota should stick to hybrid technology or invest in a new technology, I decided to use the Five Forces Model. Threat of new entrants and entry barriers 3.
When industries like Toyota boast relatively high on sales in hybrids, they attract the attention of firms operating elsewhere who are looking for new arenas to compete in. But Toyota is not the only company producing hybrid vehicles any more. First of all, the degree of rivalry on hybrids and full-electric cars for Toyota is very high.
Toyota used the Prius as the centre-piece of their campaign to give themselves a more environmental image compared to their rivals.Up to Us Competition; Wear it Wise; Careers. Jobs and Internship Board; Job Search Tools and Tips “All the people I've met through Net Impact have an incredible drive to accomplish great things and really make a positive impact on the people around them.
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