Essay on Analysis Tools For A Company Brand Image And Reputation

Essay on Analysis Tools For A Company Brand Image And Reputation

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Analysis Tools

Value chain

Five forces
Threat of New Entry (Weak):
• Large amount of capital required
• High retaliation possible from existing companies, if new entrants would bring innovative products and ideas to the industry
• Few legal barriers protect existing companies from new entrants
• All automotive companies have established brand image and reputation
• Products are mainly differentiated by design and engineering quality
• New entrant could easily access suppliers and distributors
• It is very hard to achieve economies of scale for small companies
• Governments often protect their home markets by introducing high import taxes

Supplier power (Weak):
• Large number of suppliers
• Some suppliers are large but the most of them are pretty small
• Companies use another type of material (use one metal instead of another) but only to some extent (plastic instead of metal)
• Materials widely accessible
• Suppliers do not pose any threat of forward integration

Buyer power (Strong):
• There are many buyers
• Most of the buyers are individuals that buy one car, but corporates or governments usually buy large fleets and can bargain for lower prices
• It doesn’t cost much for buyers to switch to another brand of vehicle or to start using other type of transportation
• Buyers can easily choose alternative car brand
• Buyers are price sensitive and their decision is often based on how much does a vehicle cost
• Buyers do not threaten backward integration

Threat of Substitutes (Weak):
• There are many alternative types of transportation, such as bicycles, motorcycles, trains, buses or planes
• Substitutes can rarely offer the same convenience
• Alternative types of transportation almost always cost les...

... middle of paper ...

...ce. No other automobile manufacturer can do it as well as Toyota does. This distinct competence has led to a competitive advantage that has given Toyota a sustainable brand name and a market leader position.

BCG Matrix

High Relative Market Share Low Relative Market Share

High market growth STAR
• Lexus- luxury sedans
• Prius hybrid
• Land Cruiser SUV
• Scion – for youth in USA
• Camry / Corolla – as hybrids
• Bio –fuel, Solar –powered , hydrogen gas
• Diesel engine cars for India, Southeast Asia
• Small cars for India / China
• More SUVs and MPVs : Fortuner

Low market growth CASH COW
• Camry , Corolla sedans
• Innova , Venza –MPV
• Daihatsu -small cars
• Celica , MR2 -for youth
• Tundra –pick-up
• Crown, Cressida, Corona, Quails: Withdrawn
• Declining markets in UK, Europe
• Petrol cars to be phased –out

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