Case #2 Toyota

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Case #2 Prius: Leading a Wave of Hybrids 1. What micro environmental factors affected both the first generation and second generation models of the Toyota Prius? How well has Toyota dealt with these factors? The micro environmental factors that affected the first and second generation of the Toyota Prius included the customers, competitors and the vendors of the vehicle. Customers were a primary factor in the success in the Toyota Prius. By identifying the qualities that were important to the consumer, such as fuel efficiency and luxury improvements, Toyota was able to capitalize on the niche market. As there were no major competitors currently on the market, Toyota was able to capture a main hold on buyers who were interested in the hybrid vehicle, and create a demand which exceeded the supply. Other businesses that were involved were the dealers of the vehicles, who went through extensive training to provide the information and customer service to match the quality of the vehicle. In each of the micro environmental factors, Toyota has successfully created a dynamic structure in the introduction of the Prius Hybrid. 2. Outline the major macro environmental factors--demographic, economic, natural, technological, political and cultural-- that have affected Prius sales. How well has Toyota dealt with each of these factors? Macro environmental factors also played a crucial role in the sales of the Prius. Demographically, Toyota directed the vehicle towards the consumer who could afford to pay a higher ticket price for the fuel efficiency and environmental benefits. These well-educated consumers recognized the Prius as the front runner in the hybrid field, and were willing to pay top dollar (and in many cases above the asking price). Economics played a major role, as the price of fuel skyrocketed and consumers abandoned the full sized vehicles that

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