Environmental Factors Essay

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Introduction An organization must be familiar with the needs of the consumer before introducing a product in to a select market. Toyota Motor Company understood this when introducing the Toyopet Crown in 1957. Even though this vehicle was not such a great hit this did not stop Toyota’s pursuit to gain their share of the market in America. This move was taking on a big risk since the two countries were at war just fourteen years prior. Toyota has grown to be a well-known vehicle manufacturer based on their reputation for quality and ability to change based on outside factors. There have been other outside factors have also influenced the direction of Toyota within the United States and adjustments they have had to make to their marketing plan. Environmental factors that have mostly influenced Toyota’s marketing plan are competition, demographic factors, governmental policies, and technological changes. Competition When the Japanese auto manufacturer Toyota first came to America in 1957, they were already facing stiff competition with big names American made vehicle manufacturers such as Chevrolet, Ford, and Dodge but that did not seem to affect their decision to move forward. Toyota has been able to keep up with their competition by adding different levels of vehicle lines such as Lexus and Scion. According to Wall Street Cheat Sheet, Toyota is the number one most reliable vehicle with an average of 210,705 miles in its lifespan (Becker, 2014) compared to other manufacturers. Consumers want a vehicle that is reliable, cost effective, and affordable. Many consumers will purchase a vehicle with the intent of keeping the vehicle for a long time, whether it is because they plan on passing it on to a new driver or their income does not give them the flexibility to purchase a new vehicle every three years or so. While American made vehicles are usually cheaper to

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