Competitive Rivalry

Competitive Rivalry * Industry dominance by hardly a(prenominal) large firms The car automobile industry -There are various competitors in this market but the dominant ones include General Motors, Volkswagen, Chrysler, Ford, and Honda etc. entranceway barriers prevent other entrants and pricing is mostly by competition and reciprocal understanding between top manufacturers. * Huge setup cost and sail through resource ownership * Prices remain stable if afirm reduces produce price others follow suit and cut down their price as well, if a firm increases product price, others do non increase their price. oyota stress on continuously finding ways to reduce exertion costs. The political party besides optimized its processes to accelerate the various phases of production &8212 from initial design to production &8212 so that it could introduce new models faster than its competitors. Seek less pricy ways to produce desirable products -BMW Group and the Toyota Motor Corporation pro claimed a collaborative effort aimed at developing new products and advanced-powertrain technologies. Toyota also has an agreement with Ford to develop hybrid systems for light trucks and sport utility-grade vehicles. Threat of convert products * There are a lot of substitutes in the automobile industry. When the price of the vehicles rises, the substitutes will emerge, there are many types of equipment that puke take the place of vehicles, such bus, subway, bicycle and even walking. The Hybrid synergism Drive also must be evaluated using Porters model ingredient for threat of substitute products.Other companies could potentially enter the hybrid market by developing a similar drive and neutralizing Toyotas advantage. In fact, Nissan and Honda have essential similar technologies for their sedan models. However, Toyota continues to dominate the market for hybrid vehicles because Honda and Nissan do not have a significant impact on the market yet. In the future, Toyota may lose their competitive advantage if hybrid vehicles take a bigger market share in the automotive industry.However, currently Toyota is matching rollick Utility Vehicles (Toyota Highlander) to their line of vehicles using the HSD. By being the first to add SUVs to the hybrid market, they have currently protected their competitive advantage from substitute products. Bargaining power of Suppliers Toyota Production System which developed a net income of suppliers who would supply the right quality, quantity at a point dear in time for Toyota to use in building its cars. This reflects weak negotiate power on the part of the suppliers in terms of our model.