Вы находитесь на странице: 1из 4

DCM Toyota Ltd.

. Of India Climate for business: India vs US Indias economy is larely based in agriculture (1989 : 80% GNP) 800M people; large market (largest democracy in the world) Domestic production to reduce imports is encouraged Absence of reliable electric power thus firms encounter frequent electric supply problem Poor quality of Indian road system, making products and goods for sale difficlt to transpor By 1980, icenses for joint venture with foreign companies is easily obtained. Rapidly growing number of institutional investors in 1989

Market for LCV in India 1951 : 11% transported by road (others is either by rail or water) 1986 : transport by road had grown to 50% 2001 projection: 62% transported by road Since rail roads were slower and air freight is limited due to terrorrism bombing, demand on CV rise. 2 tonnes and 3.5 tonnes LCV were produced

Five Forces Model

Suppliers : Strong limited number of suppliers that supply quality parts demanded by DCM substitute parts for LCV were not yet considered suppliers can demand higher cost due to unavailability of needed parts

Buyers : Moderate since DCM produces quality products, mostly incur high price limiting the number of costumers buying the product Substitute : Weak alternatives are available such as ox cart, river barges, railway and airplane wherein it does not meet the users wants which is inclined on transporting fast and easy. New Entrants : Weak entry in the field requires large capital investment

Competitors : Strong statistics shows the tough fight for companies in this field with regards to price comparison and superior quality feature.

Strength produces quality product latest production technology quality people from top management to labor workers training services to technical support

Weakness product is usually overload and driven at great speed over bad roads creating road accidents high speed accident involves replacement of LCV components service was not available in many parts of the country component for LCVs were not available in India due to limited suppliers of quality component planned quality that is higher than customers were accustomed to

Strategy of the company production of top quality LCV in JIT system, having quality people in the company working together to meet the customer demand Challenges in the industry competitive price of product in the local market sustaining the high quality feature of the product while maintaining sales on top

Strategic Initiatives Find a way to have a strong competition in the product price Finding alternatives of parts and components that is available in the Indian market

DCM-Toyota Ltd. Of India Case Study

November 10, 2012 Submitted by: Jorizz Jem A. Martinez Submitted to: Ma.Cecilia C. Carlos