Toyota And Lexus Pestel Analysis

Toyota And Lexus Pestel AnalysisThe purpose of this report is to conduct a strategic appraisal of Ebrahim Khalil Kanoo Group and assess the implications for the outline of the keep company. To conduct these epitome 2 main full points get out be clearn into consideration. Firstly the international environment of the company that ordain focus on its wider environment by applying a PESTEL frame melt down and Porters tailfin campaigns that will lead on to secern key opportunities and threats facing the company. Secondly the internal resource capability digest that will focus on the companies Recourse Audit and its value drawstring followed by a linkage of its Core Competency by applying the VRIN analysis, that will lead to an indication of the key strengths and weaknesses of E.K.Kanoo Group.For over a century, the Kanoo family has been one of Bahrains preeminent merchant dynasties. With business connections spanning the Arab land and South Asia from the days of antiquity regular(a) in front the invention of the motor railroad car the Kanoo name has for generations been a proverb for trust, benefit, and dependability.In 1920, there were entirely two cars on the island of Bahrain, both possess by the Ruling family.Therefore in 1952 Ebrahim took the chance to established himself as a leading importer of automobiles and sp atomic shape 18 move under the name discolour Auto Stores, securing in 1966 the sole authorized distributorship in Bahrain of Toyota automobiles, industrial vehicles and associate servicings. The Toyota Motor Corporation was founded in 1937 by Kiichiro Toyoda. The first vehicle, the Toyota AA, was produced in 1936 whilst the company was still associated with Toyoda. The brand as we know it became established as an single-handed company in 1937 and changed their name to Toyota. They opened their first factory in 1938 but it had to be cease production during World War II.In 1974, Ebrahims sons, Mohamed and Fuad, assumed r esponsibility for the day-to-day operations and strategic direction of the business, point it into a bran- raw(a) era. They formed the E.K. Kanoo Group of Companies. Focus was initi eithery solo on the Toyota franchise, and this resulted in the establishment of one of the roughly sophisticated and happy automotive businesses in the region.In 1989 Toyota launched their new luxury product imbibe Lexus and in 1990 the company was offered to become the sole distributorship of Lexus automobiles.Toyota is legitimately one of the largest corporations develop hybrid vehicles for the commercial securities industry.Today, with more than 50 years of commitment to attend to excellence, E.K. Kanoo is univers onlyy acknowledged as one of the islands automotive pioneers of Toyota and lexus, developing and surpass expectations in the automotive business.The next generation of the Kanoo family atomic number 18 now in full involved in the business and are building their careers, and expa nding the business, in the founders footsteps. make head modality diversification expansion took the group into some former(a) business areas, building new companies with the same commitment to trust, commitment and dependability such as Kanoo IT, ho show 1, Kanoo mightiness solving.Kanoo IT in 1999In 1999 Kanoo IT was launched as a cleavage of Ebrahim K. Kanoo B.S.C.(c) which deals in A commitment to first-rate ICT product and benefit support that is contriveed in its partnership with the leading hardware and software brands throughout the world.The changing type of the ICT industry drives Kanoo ITs strategy to provide industry leading products and returns to its trade in Bahrain. The company has geared itself to meet this ch exclusivelyenge by oblation an innovative nock out of products and allied operates and cosmos sensitive to the nice postulate of todays guest security measures 1 in 2006In 2006 Security superstar was launched as a division of Ebrahim K. Ka noo B.S.C.(c). Which deals in a division of the Ebrahim K Kanoo Group of Companies that stands on developing and providing especial(a)ized solutions in the areas of Security, Fire, asylum and Automation requirements for all Governmental, Commercial, Residential and Industrial projects.In involvement with the first of all and established international product manufacturers in Security business, it has created a unshakable Competence Center in Bahrain with an professional experienced aggroup of consultants and sensible engineers, aimed at providing the most(prenominal) innovative and cost effective solutions, coupled with minute customer support and after sales service.They develop, deliver and support the most mission-critical applications to meet the most stringent customer service requirementsKanoo Power solution in 2006In 2006 the Kanoo Power Solutions was launched as a division of Ebrahim K. Kanoo B.S.C.(c) which deals in mightiness products for industrial applications. It is the Authorised Distributor in the Kingdom of Bahrain for Exide Technologies and Chlo annoy UPS Systems who are pioneers in their respective champaigns.Exide batteries sustain a design life ranging from 5 to 20 years and are available in both AGM and change technology. Exide Technologies is a Global leader in stored electrical energy solutions for all major critical reserve standby power applications and involve. Standby power applications include communication/data networks, UPS organizations for computers and control strategys, electrical power generation and statistical distribution agreements, as well as a wide range of other industrial standby power applications.Toyota Lexus PESTEL AnalysisThe first stage of the external environment analysis is through the PESTEL framework that suspensors E.K.Kanoo get awayrs understand the loose picture of the semi governmental, economical, social, technological, environmental and legal issues that they are operating within. (r eference)Based on our enquiry it has been recognised that they piece of ground the same analysis as the yield company in Japan but differ in nigh areas.(To be added)Political factors impact on many another(prenominal) vital areas such as the environment of the workforce, the humans health and the quality of technology such as hybrid system.Based on our research, Toyota have positive political impact. By producing the environmental friendly cars which use less gasoline and make out dependency on petrol, Therefore, the orbit itself reduce the dependence of the petrol. On the other hand EKKanoo and its customers benefit from this issue as prices of full are untold lower than Japan and the US.The dependence of the natural gas and oil from the conflicting source will directly and indirectly affect one body politic economy growth and besides the national security.Growth in the pedestal development sector following the announcement of Qatar hosting the 2022 world cup and Qatar B ahrain provide will revise the economy.(Economical factor)The social unrest continues to weigh heavily on the countrys political stability. People are not in a pip to comfortably invest in expensive products.Economical factors This includes interest rates, appraise charges such as the road tax, insurance tax, economic growth, inflation and tax incentive. In other words, the costs have to pay more for car users.Economy is overly another impact to almost all countries slightly the world. The consumers start to choose the hybrid car ground on the benefits of smoke savings over prison term which means the paid back.There had been a slight decline in sales of non-luxury automotive brands due to the political unrest and economic slowdown (2009-2011), but the figures this year reflect a positive outlook and the growing sales numbers will delight forward in 2013. Market share for Toyota has outgrowthd over 2011 which was broken due to shortage of stock and end of cycle models. High project oil prices in 2013-17 will contribute to financial surpluses. Neighbouring GCC investments will increase due to huge petrodollar surpluses.Major projects have been declared to commence and be completed by 2013 2014. These projects are residential as well as industrial with the potential of increased population and commercial activities that would generate mellow sales of vehicles and equipment.Appreciation of smart currency does not help in maintaining war-ridden determine.Social factors This factor takes into consideration all events that affect the market and community socially. Thus, the advantages and disadvantages to the people of the area in which the project is taking interpose overly need to be considered. These events include cultural expectations, norms, population dynamics, bouncing consciousness, career altitudes and international warming.Due to the climate change become a serious topic nowadays, Therefore EKK is importing vehicles from Toyota whi ch adapt with GCC standards and environment also Toyota should produce a vehicle which it will not bring pollution to the environment.Very low dependence on public transportation system in Bahrain, therefore people prefer to own cars.Technology factors forward-looking technologies create new products and new processes. Technology can reduce costs, mitigate quality and lead to change. These developments can benefit consumers as well as the organizations providing the products.Toyota plaza is one of the largest service centres mechanism in the world for Toyota and Lexus. enterprise Recourses Planning (ERP) which have the latest version of oracle system.Legal factors Organizations also have to adjust their products and ways of operating to the contrasting regulatory and legislative framework that govern each of the products areas and countries in which they are active. Other than that, the programs also need to take into consideration. Organizations have to follow all the rules an d regulations which are set by the governance even if there is new technology involvement,electric cars from Toyota which the company cannot import due to country economic growth issues.Changes of country importing rules and regulations can affect.Number of automobiles allowed into the country and yard parking cost.environmental factors include the weather and climate change. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is bonnie a significant issue for firms to consider. In Bahrain one of the GCC countries which have scorching climate over the year.(to be changed).E.K.K have signed contracts with recycling companies to cycle all after service materials such as oil, tiers, spark plugs and forwarding boxes.All imported cars are installed with an friendly environment exhaust system that reduces the amount of air pollution.Porters 5 forcesAs for considering the warlike issues the organisation faces Porters five forces helps identify the attractiveness of the industry it operates in and helps it understand the strength of the current hawkish position.(reference)Power of suppliersThe bargaining power of suppliers is low. There are various types of suppliers in the vehicles industry, including the cooling system, electrical system, braking system and fuel sum system distributed across the globe. EKKanoo became the sole distributor of parts and extended their car endorsement to 4 years/150,000 KM with a 3 year gratis(p) service package and built a beloved network of service and parts centres throughout the region.However, most vehicle manufactures own many standardised suppliers, and also have the ability to produce the components by their own in the short time. Thus, the suppliers do not own the power to change the price.Power of buyersThe Bargaining power of buyers is exalted. Bahrain market continues to be price driven for most of the customers segments. Today, buyers have a allot of information channel, such as the internet, where can easily find the proper vehicle. And, the preferences of the private consumers are important to the vehicle corporations. If automobile Company increases one type, they can also choose other type or the cheaper one. nodes look for more discounts, free service packs and soften financial schemes or they can easily find the substitutes. Such as used cars, trade in or exporting from other countries. brat of new entrantsThe entrants cannot enter to the automotive industry easily, as automobiles are special products that require a large amount of money on the design, command the market, electronic functions, and preventative issues. And another important issue is the brand loyalty in the car market. Vehicle firms always benefit the brand value, and come down the consumer sensitivity about the price.As EKKanoo has been the first automotive industry on the island and Toyota stands for Quality, Safety, Durability and Reliabil ity a benchmark in the automotive world customers have a strong belief in the brand and sense that Toyota is the most reliable brand in the automotive market and witness that it has become more advanced technologically with refined interior which reflect unrivalled elegance and exclusiveness.Therefore Toyota stands out as a high value brand and Low cost of ownership is associated with the brand.Rivalry among competitorsThe aspiration in the auto industry is strong. The top eight auto companies have occupy large part of global revenues, and these automobile manufacturers strengthened the globalization and consolidation across the worldwide range.Korean brands are proving to be a potential threat with the introduction of attractive design and features at competitive prices. This reflects their increase in market share over the years.Competition among the Japanese brands is intense, American brands will take advantage from the appreciated Japanese Yen and Chinese brands have started to show their presence in the market.With new models being launched in 2013 for the Toyota line up, Toyota would be able to dominate the market and show up as the leading brand. Toyota will face intense competition from Nissan, Hyundai and Kia in the rider segment, youthful and uncontaminating brands will have more opportunity.Nissan poses to be the major threat for Toyota in Bahrain as they have an aggressive pricing strategy which is helping them to dominate the market. This is reflected in the increase of market share of Nissan over the years. Korean products have a more youthful and sporty design with added technological features at a competitive price.The main competitors of Luxes in Bahrain are BMW, Mercedes, Audi and Infiniti.5. Threat of substitutesThe threat of the substitutes is high. 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 can take the place of v ehicles, such bus, subway, bicycle and even walking. In Bahrain it is Low because of the hot clement it is hard for people to walk and ride bikes, low public transportation services as its a half-size island.Internal Environment AnalysisResource AuditThe next stage is to carry out an analysis of E.K.Kanoos internal resource capability by applying the Threshold and Distinction capability framework that will maintain a briefing of the resources available to the company and how they help them pass on competitive advantage and headmaster performance.Threshold ResourcesBased on the analysis of E.K.Kanoo business field its Threshold Resources are the need of capital, salerooms, service garages, stock, logistics, land transportation, customers, suppliers, technical equipment, break and garage equipment and staff personal to achieve its competitive advantage and superior performance within the market.Threshold competencesMarketing E.K.Kanoo has a high strategy of innovation therefore the need of marketing is highly recommended to launch its new automobiles, spare parts and accessories , for example handling the launch of 2013 models.IT systems Updated technologies and IT experts are crucial for the running of the business as without these, the organisation would not succeed as they have innovated the organisation with the Oracle system that will be explained further along in the report .Distribution E.K.Kanoo has managed to lower the cost of distribution which is also a vital part of its business by having its storage spaces next to the automobile market and within its service centres.Competitor research Having an insight on what competitors are doing helps E.K.Kanoo achieve constant marketing innovation to continue making progress over its competitors.?Customer relations One of E.K.Kanoo distinct features is its Online and mobile Personalised Service that is arranged by the customer relations management department that is computerized System for Identify ing, Targeting, Acquiring, and Retaining the Customers, helps in Profiling , soul Their Needs, and in Building Relationships With Them By Providing the Most Suitable Products and Enhanced Customer Service and also Integrates Back and Front Office Systems to Create a Database of Customer Contacts, Purchases, and Technical Support, Among Other Things. This Database Helps The Company in Presenting a unite Face to Its Customers, and Improve The Quality of the Relationship.Recently they have introduced the customer online service appointment booking system that will ?Allowing customers to provide direct feedback and recommendations to them to increase company innovation and customer satisfaction?Distinctive resourcesLocation E.K.Kanoo has grow from operating in the capital only to operating all virtually the Kingdom of Bahrain.Recruitment Staff are recruited based on the companys needs and is also task oriented, targeting experienced people with high talent and thereof target staf f working for well cognise companies such as ?Price -?Scale of business Moving from selling random automobiles only to covering all customer needs from all types of Toyota and Luxes automobiles, offering service packages, spare parts and accessories plus innovation by introducing .?Brand regard -?Distinctive competenceSupplier advantage Amazons ability to source a varied range of suppliers. Starting with Ingram books, the largest book distributor in the US, before going live online. After which Amazon built many different types of distributors, from the seller customers to book publishers. Building relationships with well known manufactures and brands along the way easing the launch of Kindle.Three pillar strategy Selection by offering a wide selection of both luxury and passenger automobiles , Price committing to price leadership with no sacrifice to quality by offering free shipping and on time delivery, Convenience by dedicating many resources and building a customer relati on management group to understand its customers needs and wants.Technology E.K.K enhanced its technology by incoming the online service appointment and rent a car option on its website.Value Chain AnalysisAnalysing the value chain will help describe the categories of activities within E.K.Kanoo which together creates its retail service.Support activatesFirm theme E.K.Kanoo corporate headquarter is based in Manama the capital of the Kingdom and its showroom is placed in the middle of the automotive marked district, as E.K.Kanoo is a sales and after sales business they built a good network of service and parts centres throughout the region and expanded the service branches all over the main cities of Bahrain to reduce customer traffic and time consuming.Human Resource Management Employees are an expensive and vital resource. EKKanoo manage recruitment and selection, training and development, rewards and remuneration. They consider their employees as HUMAN CAPITAL and this is most ly focused on the technical side as the select technicians based on specific sanders that enhance them to be sent for a two years secondment to the mother company in Japan to meliorate their talent management and implement it within the organisation. They also follow the squad 21 technical training scheme the development of this new aggroup curriculum was necessary to keep carnet with changes in the automotive industry and to take advantage of advanced training technology to better serve customers satisfaction, achieving high efficiency and quality work process in each service shop, is the main global of restructuring service training.The mission and objectives of the organisation is the driving force behind the HRM strategy.Technology Development Technology is an important source of competitive advantage. Companies need to innovate to reduce costs and to protect and sustain competitive advantage. Therefore EKKanoo implemented its own Enterprise Resource Planning team that instal led the Oracle system to the organization by liking it from its headquarters to all branches and department all threw the kingdom that could be modified based on the departments requirements as pear enhancement report that shows departments needs objectives of their requests besides to advantages and how it will impact the business, billet one of the largest and most advanced Toyota and Lexus service centers in the world called the Toyota plaza that is installed with the most advanced technology equipment that assures health and safety to both the environment and staff, increases service quality, equipped with the latest accidents repair and frame alignment technologies, the most advanced painting systems and quality control techniques are utilized in the Toyota Plaza. Kaizen continual development that calculates the utilization performance of all technical support that are engaged in the technical work field.Customer Relationship Management (CRM) ( ? ), and many other technologica l developments. procurance This function is responsible for all purchasing of goods, services and materials. The aims to secure the lowest possible price for purchases of the highest possible quality. Toyota motors will be responsible for outsourcing (components or operations that would normally be done in-house are done by other organizations), and e-Purchasing (using ITand web-based technologies to achieve procurement aims).Primary activatesInbound Logistics E.K.Kanoo invests in look and Development to enable them to find new ways to improve their customer experiences and, taking into account customer feedback to understand their wants and needs before society any new vehicles.Operations Operations include organizing and ordering the parts and accessories for new cars, and the final tune for a new cars engine. E.K.Kanoo are known for their reliability which comes from efficient operations. Therefore they always take into consideration the number of sales staff and technicians th at are required to be trained to achieve organization and customer satisfaction during the sales and after sales process. outward Logistics The goods are now finished, and they need to be sent along the supply chain to wholesalers, retailers or the final consumer. Toyota motors manage their own Showrooms in different countries. Toyota motors make their product easily assessable.Marketing sales In true(p) customer orientated fashion, at this stage E.K.Kanoo prepares the offering to meet the needs of targeted customers. Therefore they focus strongly upon receiving the ordered vehicles, coordinating the logistic yard, marketing communications, promotions mix and showroom display.Service This includes all areas of service such as final checking, after-sales service, complaints handling, training and so on. E.K.Kanoo value their customers Support Activities.