Case 2: Prius: Leading a Wave of Hybrids

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Q1. What microenvironmental factors affected both the first generation and second generation models of Toyota Prius? How well has to Toyota dealt with these factors? Customers: The first-generation Prius first focus on the early adopters, techies who were attracted by the car's advanced technology. This group of consumer not only bought the cars, but also exploited more utilities of the car unexpectedly. Thus the Prius benefited from the first group of consumer and gained the reputation. Then Toyota made countless improvements in the second-generation Prius including better looking, more fuel efficiency, more room and luxury equipments. Apparently, the second-generation Prius successfully made all types of consumers to be interested like people who pay attention to the environmental protection. Therefore the Prius had been consolidating its status as the dominant green car in the world, even the other green car with the different brand nameplates as BMW could not exceed it. Intermediaries: The second-generation Prius sold in United States in 2004 and gained a runaway success. During the period, many Toyota dealers got price premiums of up to 5,000 dollars over sticker price for the Prius, which was also a good way to promote and advertise the Prius. Q2. Outline the major macro-environmental factors – demographic, economic, natural, technological, political and cultural - that have affected the Prius sales. How well has Toyota dealt with each of these factors? Demographic: The Toyota emphasized the Prius was environmentally friendly and fuel efficient. At the beginning, however, the function and the sticker price of the Prius were not competitive compare to the other brands, as a result most of people did not want to take the risk to buy the Prius. Therefore, for starters, the Prius targeted possible potential customers to the people who were attracted

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