Toyota Case Analysis

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Harvard Case Study: Toyota Motor Corporation - Launching the Prius By Gilmara B. Amado Rizka R. Pratiwi Sannipa Pattanapiyasup Johnson & Wales University Situation Analysis The newly appointed CEO of The Toyota Motor Corporation (TMC), Hiroshi Okuda, believed that a totally new concept would change the face of Toyota. Thus, TMC launched Prius as the first hybrid car under its G21 program which was the car for 21st century. The main purpose of this G21 program was to create automobile for the future and it needed to be environmentally friendly. Also, many regulations was put in place in order to regular the car mileage per gallon and pollution emission. Eiji Toyoda, who was a chairman of the TMC, was concerned about the way of they were building cars and if they would survive in the 21st century with their current R& D development. G21 team was putting in place where team member would brainstorm ideas to bring totally new concept to life. This G21 would tackle their lack of innovation ideas and the environmental concerns in additional to giving Toyota the lead on the hybrid technology. During development, G21 team encountered few obstacles with the engine performance; also Prius body style was a combination of Corolla and Corona. The team wanted to go with a 50% fuel efficiency performance but the managers wanted to go with 100% fuel efficiency. The idea of bring hybrid technology emerged. Although this technology was not relatively new, making it reliable was a challenge. Hybrid technology has two key technologies: the batteries and the control software. The TMC biggest challenges were to master these key technologies and launch the car in 3 years period. Within these key technologies, TMC encounter two major issues: the development of these batteries which was not available then to meet Prius’ demand and the development of regenerative braking

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