Prius: Leading a Wave of Hybrids

Question 1

The 4 factors in the microenvironment that affect the introduction and sale of the Toyota Prius are: The company, Customers, Competitors and the Public

1. Company:

Toyota spends a lot of money to promote and advertise the Prius because it expects its product to set a luxury vehicle rather than a line of hybrids from mini compacts. Coordination within the company is required to successfully introduce the Prius and build a strong new line. A lot of problems were caused within the company by the second generation as production increased necessitating a cut in production for other lines. Some external incentive that were favorable by the company was some states gave permits allowing hybrid to dive on highway occupancy vehicle, some provided parking, government gave tax breaks mounting to thousand of dollars and some company gave their employees up to $5000 just by owning a eco friendly car

2. Customers:

Toyota has carefully studied the consumer market and has adapted its marketing accordingly to better satisfy consumers needs and wants as they want better design, roomy interior, fuel efficient and storage space. Toyota focuses on techies who will be the purchasers. With that in mind Toyota focuses and pushes the technology of the car, promotes the environmental aspect of the vehicle. Techies are very interested in the technology as stated in the case "buyers not only bought the car but found ways to modify it by hacking into the prius's computer system".

3. Competitors:

Toyota managed to jump into the market earlier than their competitors, which was a major aspect, as competitors will have to enter the market later as companies in America were slow to introduce the hybrids. First companies to introduce hybrids were Toyota and sHonda, which helped them in marketing and positioning themselves. Toyota were willing to enter the market and establish technological lead as well as fuel efficient and environmental friendly product. American companies on the other hand are taking a different approach as they believe gas savings are greatest on vehicles using most gas, they are trying to introduce the bybrids on bigger cars.

4. Public:

Toyota promotes and floods its media groups with press releases and videos on the vehicle. The biggest and successful promotion aspect was the earth day promotion, which got them good media coverage and helped them promote their cars and build good relationship with environmental groups and focus on their intended target market. The public is favorable toward a company or product that aims to reduce lower gas mileage and reduce emissions and is environmental friendly.

Question 2:

* Economic:

Toyota offers a tax deduction but price of the car is relatively similar to what Americans customers are paying for their cars. People are willing to pay and go the extra mile to be first owner of a prius. The success of selling the car leads to increase in supply resulting in lower price. Gas prices also plays an important role in consumer behavior and prius offers greater savings due to their technology, leading to an increase in demand of the car.

* Technological:

Technology is prius main focus and strength. Toyota aimed the car to "techie" customers and introduced it in their marketing campaign. The car is technologically advance compare to other vehicle such as the batteries brand vehicle adds on such as cruise control options, six cd player and the dashboard allowing customers to play video games and connecting devices to their laptop or even watch TV.

Question 3:

a) Value delivery network describe as company, suppliers, distributors and ultimately customers who partner with each other to improve the performance of the entire system.

Toyota in this case uses a close relationship with its suppliers