Strategic planning could be defined as a review of internal and external business environment and resources to determine the major influences on the position of an organization . This essay discusses the Toyota Motor Corporations strategic planning. Specifically, the essay analyzes the new Toyota Prius Hybrid and determines the products potential success in the highly competitive automobile industry.Competition in the automobile industry is intense, and this has forced manufacturers including Toyota to institutionalize a culture of innovation. The new Prius brand will face competition from the already established brands in the market. The rising fuel prices have forced motor vehicle enthusiasts to look for ways to cut the costs of motoring. The Prius brand is environmentally friendly; therefore, it will capture the hearts and wallets of drivers throughout the globe. Even though the Toyota Prius brand is not fast compared to other brands, it has gained much popularity in the past few years due to its efficiency.
The ageing population crisis in Japan is causing major concerns for corporations, including the Toyota Motor Corporation. This is due to the fact that the situation has adverse effects on the labor supply. Tiffen and Gittins (2014) define labor force participation as the section of the total populace that chooses to be actively involved in the labor force. The ageing population will undoubtedly cause a reduction in the number of employed persons. Decreases in the workforce will certainly lead to changes in the levels of output. Production of Toyota Prius may increase with ageing of the population up until the point where the effects of ageing begin to affect the majority of workers, and production is bound to experience a major decline, all factors held constant. The result of this will be an inevitable decline in aggregate levels of production of the Toyota Prius brand, which may only be counteracted by changes in technology.
Manufacturing vehicles is a costly affair; consequently, the Toyota Motor Corporation has moved its manufacturing sites to countries where fixed costs of manufacturing are relatively lower. Therefore, Toyota manufactures the various car parts and assembles them in foreign countries. This move has enabled the company to cut its costs significantly. As a result, the Toyota Prius brand is likely to succeed in the highly competitive automobile industry.The Toyota Prius brand has been subjected to a rigorous analysis. For this reason, it can be concluded that it is likely to succeed in the market.