CHAPTER 1 INTRODUCTION

INTRODUCTION
Indus Toyota Industries has serving its customers since long time. Indus Toyota motor develops and manufactures automobiles and automobile-related products, such as vehicles, engines, car air-conditioning compressors, car electronics components and devices, and stamping dies.

THE EYES OF THE CUSTOMERS

"Concern beyond Cars" We are providing reliability, after sales service, better performance, safety and spacious. We know that the only way to meet the needs of the customer is by putting our self in the shoes of customers and asking our self what we need, what would make us happy.

REGIONS
Indus motors ( akistan! started its business in akistan as a public limited company in "ecember 1#$#. The shares of the company are %uoted on the stock e&changes of akistan. I'()s production facilities are located at ort *in +asim Industrial ,one near -arachi in an area measuring over 1./ acres lant (Indus Motor Company Limited lot 0o 0.W.,111 -1, ort +asim 2uthority, -arachi, akistan! -arachi +uetta 3arkana 3ahore 4aisalabad 5argodha 'ultan 5ialkot Islamabad 6awalpindi eshawar 27ad -ashmir "era Ismail -han 'ardan

VISION STATEMENT
8To attract and attain customers with high-value products and the most satisfying ownership e&perience around the world9

MISSION STATEMENT
8To be the most successful and respected car company around the globe9

CORE VALUES
Based on five pillars

Respect for People. Safe and friendly environment for all. Best work practices based on Et ics and Inte!rity. "eamwork. #onesty is t e best policy

HISTORY OF TECHNOLOGY DEVELOPMENT

Toyota is striving to develop automobiles that meet the needs of our customers while at the same time achieving an optimal balance between consideration for the environment, safety, drivability, comfort and reliability.

1867 Birth of Sakichi Toyoda. 1924 Sakichi Toyoda invents Toyoda Model G Automatic Loom. 1929 Automatic-loom patent is sold to a British company. 1930 Kiichiro Toyoda be ins research on small asoline-po!ered en ine. 1933 Automobile "epartment is established at Toyoda Automatic Loom #orks$ Ltd. 1935 The Toyoda precepts are compiled. 1936 The AA Sedan is completed. 1937 Toyota Motor %o.$ Ltd. is established. 1938 &onsha 'lant be ins production 1950 %ompany faces a financial crisis( Toyota Motor Sales %o.$ Ltd. is established. 1951 Su estion System be ins.

1955 The Toyopet %ro!n$ Toyopet Master and %ro!n "elu)e are launched. 1957 The first prototypes of the %ro!n are e)ported to the *nited States( Toyota Motor Sales *.S.A.$ +nc. is established.

1959 Motomachi 'lant be ins production. 1962 ,oint "eclaration of Labor and Mana ement is si ned. 1965 Toyota !ins the "emin Application 'ri-e for .uality control. 1966 The %orolla is launched( business partnership !ith &ino Motors Ltd. be ins. 1967 Business partnership !ith "aihatsu Motor %o.$ Ltd. be ins. 1974 Toyota /oundation is established. 1975 The prefabricated housin business be ins. 1982 1984 Toyota Motor %o.$ Ltd. and Toyota Motor Sales %o.$ Ltd. are mer ed into Toyota Motor %orporation. ,oint venture !ith General Motors 01e! *nited Motor Manufacturin $ +nc.2 be ins production in the *SA.

1988 Toyota Motor Manufacturin $ *SA$ +nc. 0present TMMK2 be ins production. 1989 The Le)us brand is launched in the *SA. 1992 Toyota Motor Manufacturin 0*nited Kin dom2 Ltd. be ins production. 1997 The 'rius is launched as the !orld3s first mass-produced hybrid car. 1999 %umulative domestic production reaches 455 million vehicles. 2000 Sichuan Toyota Motor %o.$ Ltd. be ins production in %hina. 2001 Toyota Motor Manufacturin /rance S.A.S. be ins production in /rance. 2002 Toyota enters /ormula 6ne #orld %hampionship( Tian7in Toyota Motor %o.$ Ltd. be ins production in %hina.

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2004 The Toyota 'artner 8obot is publicly unveiled. 2005 The Le)us brand is introduced in ,apan. 2008 #orld!ide 'rius sales top 4 million mark. 2010 #orld!ide 'rius sales top 9 million mark( Toyota and Tesla Motors a ree on 7oint :; development. 2011 #orld!ide &ybrid ;ehicle sales top < Million mark( Toyota Motor Manufacturin $ Mississippi$ +nc. be ins production in the *SA.

2012 #orld!ide sales of TM% hybrids top = million units

CHAPTER 2 PRODUCT MIX

%. P&"E'"I(L PR&)*C" 4uture product innovation and featuring! 5afety measures +. (*,ME'"E) PR&)*C" (>alue added product and services! ?ood %uality, comfort, after sales service, innovation, high resale value, low maintenance cost.

0. E1PEC"E) PR&)*C" 'ore 'ileage, *etter 2ccelerator, 'ore 6eliability, 4uel @fficiency 2. B(SIC PR&)*C" (26

-. C&RE PR&)*C" .'EE)S/ Transport (i.e. convenience and mobility!

Product Mi$

MAR ET STRUCTURE3
(PPLIC("I&' PR&)*C"S @conomy segment Mehran89 Cuore 5mall low segment CultusB 5mall high segment "oyota Corolla9 Honda City*, Honda Civic8 3u&ury car segment "oyota Camry9 Honda Accord* ick-up segment #ilu$ Ravi* <D< segment Land Cruiser

)ealers ip

Indus Motors Co.

0oteA 5egment of our representative company is in bold form, where as, segments of competitors in auto mobile Industry are written in Italic form with 5tar 5ign (B!

PRODUCTS LIFE CYCLE STAGE

We have selected 5*C of Toyota corolla, and here we are interested to know that which product of corolla lies at which stage Product Se!ments Corolla (ltis -45+cc Corolla6,li Corolla61li Corolla 1E Corolla62.7 ) Saloon Corolla62.7 ) Introduction ,rowt Maturity )ecline

CHAPTER 3 INTERNAL AND EXTERNAL ASSESSMENT

INTERNAL FACTOE EVAUATION !IFE"

:ey Internal ;actors <ei! t Rate -6+ <ei! ted Score

Internal Strengths
1. Largest manufacturer in market 2. Best Supplier 3. Good reputation and Image 4. lose pro!imit" to #irport $. Strong %anagement team &. Increase as' (lo) *. Lo"al emplo"ees 8. #ccess to c'eap and relia+le financing ,. -istor" of minimum complains Internal 10. Weaknesses (inancial .atio 10% 12% 4% 8% 4% $% 4% 3% 4% $% 4 4 3 4 3 3 3 4 3 4 0.40 0.48 0.12 0.32 0.12 0.1$ 0.12 0.12 0.12 0.20

1. Saturated %arket 2. Sensiti/e to oil prices 3. Little di/ersification 4. #+sence of Strategic partner $. Limitation #ccess to International market
Total

10% 1$% 8% 4% 4%
100%

1 2 2 1 1

0.10 0.30 0.1& 0.04 0.04

2.79

2ccording to the I4@ matri& rating (1! means maFor weakness, (:! means minor weakness, (;! means minor strength, (<! means maFor strength

E#TERNAL FACTOR EVALUATION !EFE"

#

Opportunities

1. Industr" onsolidation 2. 0e/elopment of ne) tec'nolog" 3. 1roduct 2ualit" 4. Gro)t' in lo)3cost sector $. Increased demand in
Threats

11% 12% 10% 8% 1&%

4 3 2 4 3

0.44 0.3& 0.20 0.32 0.48

1. 4e) ompetitors 2. Gro)t' of e!isting competitors 3. 5aste of t'e consumer 'as alread" de/eloped 4. Imported ars $. 6conomic 0o)nturn Total

10% $% 8% $% 1$% 1.00

1 3 2 2 1

0.10 0.1$ 0.1& 0.10 0.1$ 2.46

2ccording to the @4@ matri& rating (1! poor, (:! means below average, (;! 'eans above average, (<! means superior

COMPITITIVE PROFILE MATRI# !CPM"

1.

"oyota

#onda

Su=uki

Critical Success Factors %arket S'are In/entor" s"stem (inancial position 1roduct 2ualit" onsumer Lo"alt" .elations'ip )it' Suppliers Glo+al 6!pansion 7rgani8ation Structure 1roduct apacit" #d/ertising 6fficient ost %anagement 1roduct .90 Totals

Weight 0.0 to 1.0 0.12 0.0$ 0.20 0.1$ 0.0* 0.03 0.0& 0.02 0.0$ 0.1$ 0.0$ 0.0$ 1

Rating 1 to 3 3 4 4 3 3 3 3 3 2 3 3

W. Score

Rating 1 to 2 2 2 3 2 3 1 2 2 4 3 2

W. Score

Rating 1 to 1 2 3 3 1 2 1 1 2 3 2 2

W. Score

4 0.3& 0.1$ 0.80 0.&0 0.21 0.0, 0.18 0.0& 0.1$ 0.30 0.1$ 0.1$ 3.20

4 0.24 0.10 0.40 0.4$ 0.14 0.0, 0.0& 0.04 0.10 0.&0 0.30 0.04 2.56

0.12 0.10 0.&0 0.4$ 0.0* 0.0& 0.0& 0.02 0.10 0.4$ 0.20 0.04 2.27

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IE MATRI# OF TOYOTA COMPANY

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CHAPTER 4 STRATEGY IN ACTION

CURRENT STRATEGY
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Toyota current strategies on which the company has been working are as fallow

$AC %ARD INTEGRATION

5teel price are going high and it may be cause of increasing cost of product and also create problem in availability of steel which is very key 6aw 'aterial of automobile industry. 5o, Toyota should adopt 8*ackward Integration 5trategy9 to overcome e&pected future problem. (Toyota has a very good *alance 5heet!.

FOR%ARD INTEGRATION
2ccording to the available "ata it reveals that in 8@conomy 5egment9 (oure have a strong competitor 'ehran due to two reasonsA 1! 3ow rice :! 0umber of "ealers Toyota has ;: dealers while 5u7uki has </ dealers. In this situation Toyota should adopt 84orward Integration9 to take control of dealers and number of dealer should be increased.

COST LEADERSHIP STRATEGY

5u7uki says that it)s become a Gouse hold name because they focus in the 'iddle and Cpper 'iddle class. 'ehran and 2lto are considered economical and popular among them, although (oure is there to this class but it)s so e&pensive than 2lto and 'ehran. This segment has very potential to Increase the 5ale >olume of Toyota. 'ehran growth p.a. is <:H while coure Fust 1=H %uestions are whyI Toyota should adopt cost leadership strategy to focus 'iddle and 3ower 'iddle class customer to beat their competitors in $..cc and 1...cc cars. > 5ynchroni7ed dealership network setup, the innovative concept revolved around the 8Toyota ; 5 "ealership9. J Toyota always tries to grasp shifts in customer demands constantly checking for conformity with its standards and acting swiftly to resolve any discrepancies. J (ollect information from customers through %uality reports from dealers and %uestionnaires given to purchases of new cars and suppliers. J The main differentiating factors are the overall industry for Toyota cars is its customer)s base and brand loyalty. Its spare parts are charging reasonable to buy. It)s after sale service is improved efficiently with the passage of time.

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J Toyota Indus 'otors (ompany spends a lot of amount on 6K", which is shown by their product development program. J I'( provides better customer service through adopting product differentiation strategy, improved product design and durability of its product. J 4or I'(, the vendor supplier to reduce their bargaining power. The vendors work at an established rate that only varies in prices whenever inflation takes place. J 2fter sale service is a very important aspect of Toyota motors. J +uality of product has not been comprised with and very heavy investment has been made to build its production facilities based on state of art of technologies. J I'( has installed capital intensive technology. They are using conveyer belts to transfer a car during assembling from a station to another station. They have heat e&changer, spray booth, drying tower etc. J Toyota concept is purely depends upon Total +uality management (T+'/

ey Ind&ca'ors o( Ho) %e** '+e S'ra'e,y Is %or-&n,

Trend &n sa*es and .ar-e' s+are
The company)s unit sales increased from :#,/#/ units to a record ;/,$E< units, an increase of 2?@ and translated to a sales value of Rs. 24.? billion as compared to Rs. 22.% billion durin! 277?62774. <e ave seen increased in "oyota corolla se!ment by t e passa!e of time e$cept decline in 277Ayear due to devaluation of currency.

Ac/0&r&n, and1or re'a&n&n, c0s'o.ers

I'( has a mission to be delighting their customers and make best possibility of providing the range of products. I'( has embarked on the development of an @&press 'aintenance rogram with the assistance of Toyota 'otor (orporation, for both increased service capacity at our dealerships as well as enhanced convenience for our customers, based on Toyota roduction 5ystem provides for prompt maintenance of vehicles and has strong customer appeal for speedy delivery of service vehicles with attention to %uality detail. There is a strong emphasis on 2fter 5ales 5ervice at I'( and its dealerships. In living up to this vision, we hope to achieve our long-term goal of becoming L 1 in (ustomer 5atisfaction in akistan by implementing (ustomer 6elationship strategies and policies that will motivate our (6 staff to perform at increasingly higher standards. Mur (omplaint Gandling rocedure provides clear guidelines on how to achieve %uick resolution of customer complaints. Integration of every department at organi7ation, among vendors and dealerships help to improve standard work and focus our approach to customer oriented that is how they are %uickly resolving their key issues throughout the (ompany and our "ealer network to ma&imi7e customer satisfaction. That is a reason, Toyota has large customer base with good reputation.

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Trend &n 2ro(&' .ar,&ns

The current trend of profit margins of Toyota /./;H whereas Gonda has :.:1H and 5u7uki has :.:;H.

This analysis shows that company earned :.:/ H on its sales. Gonda and 'itsubishi)s earnings are also very close to each other.

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CHAPTER 5 COMPANY ANALYSIS

S%OT ANALYSIS

5WMT analysis is an analytical tool that for understanding the strength and weakness of organi7ations and opportunities and threats. With a thought, it can help you uncover opportunities that you are well placed to e&ploit. 2nd by

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understanding the weaknesses of your business, you can manage and eliminate threats that would otherwise catch you unaware.

S'ren,'+
3oyalty from the customers @&tensive research and development Gighly customer focused cars 5trong financial position Gigh resale value @asy availability of spare parts Well established dealer network @nFoying := H market share *rand image in the mind of customers *rand loyalty of customers Toyota currently uses ultra-high strength steel grades in :..# model year vehicles "iversified product range ositive work climate and organi7ation culture 2fter sales service

%ea-ness
3ow capacity of production with respect to ak 5u7uki 2lmost same shape of Toyota corolla available in 1;.. cc and also in 1$..ccN 1.$ 2ltis whereas the Gonda K other competitors has different shape in its product range 3ess safety measures provided in most of their brands 3ack in ability to make parts locally, thus increased on imports 4aces problem in gear bo& and clutch plate of (uore

O22or'0n&'y
@&pansion to foreign markets particularly in less developed countries 3ocal company)s e&pansion due to high consumer demand. (ater to new market segments such as 5mall low segment i.e.1...cc-

1:..cc range
Mpportunity to introduce its Toyota corolla with (0? fitted

1$

 @nvironmental friendly vehicles

T+rea'

WTM (World trade Mrder! opening local markets for global competition
The rising price of the steel is the great threat to the sectorN if Toyota

copes up with this problem they can survive and retain its market position (their own steel plant!. 2ppreciation of yen and also devaluation of akistani currency with respect to "ollar currency Gigher the discount rate from state bank affects the sales of auto industriesN they should finance cars by setting their own financings. (& mart introduce their own bank to finance the banks! Toyota 4aces stiff competition with firstly Gonda and ak 5u7uki 0arrowing industry margins

@DT@6023 2023O5I5 M M6TC0ITO 6M'I5I0? M M6TC0ITI@5

I0T@6023 2023O5I5 5T6@0?TG

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1. @&pansion to foreign markets particularly in less developed countries 2. 3ocal e&pansion due to high consumer demand. 3. (ater to new market segments such as 1...cc range with (0?.

M6TC0ITO

W@2-0@55

Mnly opportunities after improvement

1. @nvironmental friendly vehicles. 2. Cnable to meet the local demand

TG6@2T 2bility to resist

5T6@0?TG5

1. The rising price of the steel is the great threat to the sector, if Toyota

copes up with this problem they can e&ist in the market (their own steel plant!. 2. 2ppreciation of yen also the threat. 3. Gigher the discount rate from state bank affects the sales of auto industriesN they should finance cars by setting their own financings. (D '26T I0T6M"C(@ TG@I6 MW0 *20- TM 4I020(@ TG@ *20-5!

$CG MATRI#3 INTERNAL ANALYSIS OF TOYOTA PORTFOLIO

#i! relative market s are

Low Relative market s are

:.

#i! market !rowt

5tar Le$us B lu$ury sedans Prius ybrid Land cruiser S*C

+uestion Scion B for yout in *S( CamryD Corolla B as ybrids Bio6fuel9 Solar6powered9 ydro!en !as )iesel en!ine cars for India9 Sout east (sia Small cars for IndiaD C ina More S*Cs and MPCs 3 ;ortunes

Low market !rowt

(ow

"og Celica9 MR2 B for yout "undra6pick up Crown9 Cressida9 Corona9 Euails3 wit draw )eclinin! markets in *:9 Europe

(amry , (orolla sedans Innova, >en7a-' > "aihatsu-small cars

This matri& shows the current status of Toyota product in their portfolio. 0ow we have shown you the strategies of the Toyota for their products with the help of orter)s matri&

PORTERS MATRI#3 4 OPTIONS FOR COMPETITION1TOYOTA

Low Comp. advanta!e #i! comp. (dvanta!e

:1

Lar!e Market Scope

Low Cost leader

)ifferentiation

Oaris, (amry, (orolla

rius plug-in 5C>s- 5e%uoia, Gigh 3ander, 4P (ruiser, 62> <, >en7a 4ortune, < 6unner

Small Market scope

(ost 4ocus

"iff. 4ocus 3e&us- 3u&ury sedan 3and cruiser 5C>

Tundra pick-up 5cion, (elica, 'atri&-for youth

PESTEL ANALYSIS OF TOYOTA COMPANY

3e&us is a Papanese company, which produces automobiles. This company was founded by director of TMOMT2 concern 4iFi Toyoda in 1#$#. There are some key people in 3e&us history like, -a7uo M)Gara, >ince 5acco and etc. 3e&us was introduced for the first time in 1#$# in the C52. In present, 3e&us is the large-selling Papanese make of premium cars. 3e&us)s vehicles are marketed in E. countries. 3e&us is one of the most successful brands in Papan. The head%uarters of the company is located in Toyota, 2ichi, Papan, but there is a have the branch in *russels, *elgium and The C52. 3e&us originated from a clandestine flagship sedan proFect that began in 1#$;. This effort developed into the original 3e&us 35, which was the first vehicle to wear the 3e&us brand upon its launch in 1#$#. In following years, 3e&us added sedan, coupe, convertible, and 5C> models. In :../, a hybrid version of the 6D crossover debuted, and additional hybrid models were subse%uently introduced to the 3e&us line-up. In :..E, 3e&us launched its f mar%uee performance division with the arrival of the I5 4 sport sedan. 4rom the start 3e&us was produced in Papan on the Toyota)s factory and in its own factories in (hubu and -yushu. The first outdoor factory was created in :..; in (anada. 4urther, it was new factory in the C52 which is the largest outside factory of 3e&us. The first 3e&us proFect was implemented in 1#$;, when the chairman of Toyota motors 4iFi Toyoda posed the %uestionA 8(an we create a lu&ury vehicle to challenge the worldQs bestI9 This proFect had the code-name 41 (84lagship 8Rnumber 1!, the proFect)s aimed to create 3e&us 35<... It is a flagship sedan, which was the first step of a new remium car producer in Papan. Total sales and production ::

Re,&ona* sa*es5 6786 Un&'s

Papan S$;T :$,1=E @urope S$<T :/,#:1 Cnited 5tates SE<T :1/,#E/

Ty2e 2rod0c'&on5 6779 Un&'s

assenger vehicles :::,=$< (rossover 5C>s #=,=1. Gybrid vehicles =.,=:/

L&ne 2rod0c'&on5 6779 Un&'s

Papan production S$/T ://,.1: (anada production S$=T =<,:$:

To'a*
;1#,:#<0owadays, 3e&us is one of the biggest auto concerns in the world. The main competitors in Papan are its elder brother Toyota and another famous brand 0issan. 3e&us although, is very popular in the C52, because the most successful in sale this cars is Cnited states. The table to the right shows that :1/,#E/ 3e&us cars were sold in the Cnited 5tates. In :..#, 3e&us ranked 1=th in the list of TM 1.. *rands of the world. It is the big progress, because only two years ago 3e&us ranked ;1st. This year, the main competitors of 3e&us are 'ercedes-*en7, *'W, Toyota, and some other big companies. Mtherwise, 3e&us has 1.th place in the top :. most preferred brands in the world. In conclusion, the facts demonstrate that 3e&us has been developing e&tremely fast in the last three years.

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