The paper "Toyota Company Marketing Analysis" is a perfect example of a marketing case study. Government regulations and laws have been affecting Toyota Motors throughout the world. Regulations on the need to take into consideration environmental concerns have forced Toyota Motors to become forced to design and manufacture less polluting motors as well as meeting certain mileage per gallon as illustrated by Haberberg & Rieple (2001). National Traffic and Motor Vehicle Safety of various countries have forced Toyota to improve the passenger’ s safety, driver visibility, and braking system in their vehicles.
The Japanese government has reproached Toyota due to increasing recall practices. Since many countries have been keen to develop their automobile sector, the government protect the Toyota Company from other competing countries by increasing the barriers of entry into the industry. In terms of the legal influence, the Toyota Company has had various directives and regulations as argued by Bill (2003). Such regulations include areas such as competition law, consumer protection law, taxations and emissions. The company, therefore, introduced a system of local suppliers who will help to cope with the increasing legal needs necessary to ensure national integration.
Toyota has been subjected to various legal aspects including competition law, taxation, consumer protection, and emissions including fuels and air quality. Introduction of new legislation or change of current legislations might as well affect Toyota Company. Economic In the automobile business, Toyota Company is the pillar company in most developed and developing countries. It is the central foundation of their economic progress due to its major support in their steel, glass and plastic sector that provides its raw materials. However, it has recently faced decreasing profits and stagnant sales.
It is also losing its significance in financial sectors and capital markets as a result of decreasing sales and profits. The current changes in taxation changes, interest rates, inflation, and economic growth around the world has greatly affected the production and sales of Toyota. This started during the financial crisis. This has made it is exporting difficult to some countries due to foreign exchange rates. There is increasing high wages demands for workers in most countries due to inflation rates. The cost of raw materials (steel plates) for Toyota has been increasing recently making it increase its cost of production and subsequently high prices as illustrated by Haberberg & Rieple (2001). Social/cultural forces Tastes and fashions in car styling are greatly influencing the designing and manufacturing by Toyota.
Change of lifestyles especially activity sporting is becoming a great threat to Toyota. Toyota Company has socially affected the society by employing millions of people directly and indirectly throughout the world as illustrated by Hanson, D et al (2008). It has also increased the mobility where people are now able to move from one area to another easily.
However, they are some social factors that are affecting the demand of the Toyota vehicles. The issues of safety have negatively affected Toyota as people are starting to fear the safety of vehicles. The current increased recalls by Toyota have changed the perception and attitude of people concerning safety. Demographics Changing demographics including declining family size is undermining the demand for big family cars of Toyota such as station Wagons. Increase in old people population in areas like China, Europe, and America is greatly affecting the industry as this segment does not put emphasize much on the use and purchase of cars.
There has been increased demand for cars by both genders, especially at younger and working classes regardless of gender. This has greatly increased the market segment of Toyota vehicles as illustrated by Jeffrey (2004).
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