Toyota Case Study

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Case 5: Toyota 1. Based on this article, the competition in the mini car segment of the European automobile industry is best described as multi- country. Looking at exhibit 5, the top 10 car registrations in the four largest European countries, the top five cars in each country are very different than the top five in other country. There is no one mini car that competes towards the top of the list in more than two countries. In fact, the top selling car in France is the 8th bestselling car in Italy. These different countries have a demand for different mini car manufacturers must design their product towards each market individually. A company like Fiat has the top two spots in Italy, but isn’t in the top 10 in France, Germany, or the United Kingdom. Competition in each country is completely different and this is multi-country, not global. This is also because there are different sellers in different countries. As mentioned before, Fiat primarily sells in Italy, not these other countries, so there is only a demand for Fiat cars in Italy. In general, the competition is multi-country, but for Toyota, competition is global as they try to market similar vehicles in these European countries as well as in North America. 2. By joining PSA in the European mini car segment of the automobile industry, Toyota strengthened its competitive position. PSA had cars such as Peugeot and Citroen that used 93% of the same materials as Toyota’s model. PSA was already the second leading manufacturer in Europe and has a strong position in the European market. Toyota did not have much familiarity in this market, so they could learn from PSA as to the demands of the European buyer and also how to operate most efficiently in Europe. Had Toyota not joined with PSA, it would have been a much bigger and harder step for Toyota to make the transition to a foreign market. They probably would

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