Toyota Market Power

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Toyota Motor Corporation was founded on 28th August 1937 by Kiichiro Toyoda with their headquarters based in Toyota, Aichi, Japan. They have five different brands under this company which is Scion, Ranz, Lexus, Hino and Toyota. They are the employer of 333,498 employees globally and were regarded as the biggest automobile manufacturer in the year of 2012 as they were the only company that managed to manufacture above 10 million vehicles in a year. This company practices the quality first and customer first approaches and constantly works on the line of kaizen concept for their whole supply chain. By doing so, it has contributed towards Toyota’s success in their market dominance in Malaysia. With their market power dominance, Toyota has higher bargaining power compared to their customers or potential customers. It is very common for car manufacturers would offer free gifts, various discounts especially the festive season, promotion for hire purchase interest reduction and etc. Automobile industry is an oligopoly market as one changes made by one automobile firm will affect the decision by others. This can be seen by the respond of Toyota in the international arena when GM Motor and Ford offered USD 1,000 commission to their employees for every successful referral. As for Toyota, they have restructured their pricing and offer a competitive interest for their loans. However as for Toyota in Malaysia, they usually maintain their car prices without giving discount. At best, especially during festive season, they will only probably offer a free service vouchers, or additional free gifts as promotion to purchase their vehicles. They are able to control their prices due to the demand from the customers and pricing strategy is usually the least strategy they use to push for an increased sales volume. Secondly, with Toyota’s market power, they are financially rich to

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