Presented To:

TOYOTA
Sir Naveed Muhammad Khan

Presented By:
 Sidra Ahmed
 Noureen Ejaz
 Raheela Parveen
 Muahammad Usama Khan
 Haseeb
Introduction & Background:
• Indus Motor Company is a joint venture between
HOH(house of Habib) and TMC(Toyota Motor Corporation)
• Established in 1989
• It is the leading automobile brand in Pakistan.
• IMC is the manufacturer of Toyota brand vehicles in
Pakistan.
• They have 50 dealerships across the country.
Vision Statement:
• To be the most respected and successful enterprise,
delight customers with a wide range of products and
solutions in the automobile industry with the best
people and the best technology.”
  COMPONENT COMPONENT COMPONENT

COMPANY CLEAR VIVID INSPIRING

INDUS MOTOR
YES YES YES
COMPANY
Mission Statement:
1. Customers - Yes
2. Products & Services-Yes
3. Markets - No
4. Technology - No
5. Concern for survival-Yes
6. Philosophy-Yes
7. Self-Concept-Yes
8. Employees-Yes
9. Public Image-Yes
Our Services:
• Toyota provides hassle-free repair service with strong dealership network
along with a fully stocked parts store.
• Toyota is having more than 20 bays in each dealership. This offers incredible
value to customers who need their cars fixed right now.
• Toyota will attract and maintain a loyal customer base through their
customer-oriented focus on business by regular trainings to their staff to
provide the best quality in all parts.
 Industry Overview And Analysis :
• Pakistani Automobile industry is one of the fastest growing market in Asia between 2014 to 2018.
(Wikipedia)

• The industry contributes 3% of GDP and 3.5 Million of employee workforce.

• Pakistan is 35th largest produces of automobiles

• The industry is work on Just In Time Model

• Overall industry dependent on Imported parts.

• Three market leader in industry Suzuki with 29% market share, Toyota with 26% market share and
Honda with 23% market share. While other companies like KIA, MG Motors, Hyundai are also
sharing Pakistan automobile industry.
Industry Overview And Analysis :
A wide range of automotive products are available in the market which can be seen in the
following Table:

CARS TRUCKS LCVS TRUCKS BUS

SUZUKI FLAT HONDA MASTER HINO

HONDA MESSY FERGUSON SUZUKI ISUZU NISSAN

TOYOTA UNIVERSAL TOYOTA HINO PAK ISUZU

HYUNDAI HERO MG MOTORS NISSAN MASTER

KIA MILLAT TRACTORS MASTER DAEWOO DAEWOO

FAW PM AUTO INSUTRIES KIA    

UNITED BRAVO   HYUNDAI    

MG MOTORS        

Nissan        
EFE MATRIX (Toyota Indus Motor):
OPPORTUNITIES WEIGHT RATING WEIGHTED

(1-4) AVERAGE
1.    Hybrid Vehicles 10% 4 0.4
2.    Manufacturing vehicle locally 10% 2 0.2
3.    Rising demand of fuel efficient automobiles 7% 4 0.28
4.      High industry growth rate 8% 3 0.24
5.      New products in different segments 7% 2 0.14
6.      Strategic alliances 5% 3 0.15
7.      Higher frequency of introducing newer models 8% 2 0.16

THREATS   (2-1)  
1.      Exchange rates fluctuation 10% 2 0.2
2.    Entrants of new brands 8% 2 0.16
3.    Dependency on imported parts. 9% 2 0.18
4.      Rising car prices due to import bill 8% 1 0.08
5.      Government penalty on delay deliveries 4% 1 0.04
6.      Political instability 6% 2 0.12
TOTAL 100%   2.35
CPM MATRIX (Toyota Indus Motor):
CPM – Competitive Profile Matrix Toyota Suzuki Honda
Weighted Weighted Weighted
Critical Success Factors Weight Rating Score Rating Score Rating Score
Market Share 0.1 3 0.30 4 0.4 2 0.2
Brand value 0.08 4 0.32 2 0.16 3 0.24
Delivery Time 0.1 2 0.20 3 0.3 4 0.4
Product Quality 0.15 3 0.45 2 0.3 4 0.6
Sales 0.12 3 0.36 4 0.48 2 0.24

Dependency on Imported Parts 0.09 3 0.27 3 0.27 3 0.27

Price Competitiveness 0.1 3 0.3 4 0.4 2 0.2
Financial Strength 0.05 4 0.2 3 0.15 2 0.1
Product Line 0.06 4 0.24 4 0.24 3 0.18
Customer Satisfaction 0.06 3 0.18 3 0.18 3 0.18

Technology and Innovation 0.09 2 0.18 3 0.27 3 0.27

Total 1   3.00   3.15   2.88
IFE Matrix:
S. No. Strengths Weight Rating (3-4) Weighted Score
1 Strong Brand name / Customer Loyalty 8% 4 0.32
2 Advanced Manufacturing Facility 7% 3 0.21
3 Robust Dealer & Distribution Network 6% 3 0.18
4 Brilliant Aftersales service 7% 3 0.21
5 Good Resale value of vehicles 8% 4 0.32
6 Research & New Product Development 7% 4 0.28
7 Kaizen & Collaborative environment 6% 4 0.24
8 Financial Leverage 7% 3 0.21
9 Competent & Trained workforce 7% 4 0.28
 
S.No Weaknesses Weight Rating (1-2) Weighted Score
1 New entrants approaching employees 8% 1 0.08
2 Late vehicle delivery time 8% 2 0.16
3 High cost of specialist workers 7% 1 0.07
Ineffective vehicles i.e., Braking, Airbags can make Toyota lose its
4 7% 2 0.14
brand image and a potential loss in incomes in the long term
5 Capacity Constraints 7% 2 0.14
TOTAL  2.84
 Financial Ratios (Comparison with past performance):
Financial Summary   2021 2020 2019 2018
Income Statement
Net revenue Rs in ‘000 179,161,727 86,167,016 157,996,212 139,715,429
Gross profit Rs in ‘000 16,653,710 7,450,859 19,191,674 23,884,658
Profit before taxation Rs in ‘000 18,199,193 7,287,359 18,975,929 22,999,166
Profit after taxation Rs in ‘000 12,828,592 5,082,027 13,714,975 15,771,860
Dividends Rs in ‘000 8,135,100 2,358,000 9,039,000 11,004,000
Statement of Financial Position
Share capital Rs in ‘000 786,000 786,000 786,000 786,000
Reserves Rs in ‘000 47,415,465 40,383,391 39,259,309 35,958,342
Non-current assets Rs in ‘000 15,809,646 16,574,192 13,898,033 7,311,379
Net current assets Rs in ‘000 29,752,647 24,991,174 26,679,161 29,383,117
Long term liabilities Rs in ‘000 745,433 483,125 558,920 22,711
Investor Information
Gross profit ratio % age 9.3 8.65 12.15 17.1
Net profit ratio % age 7.16 5.9 8.68 11.29
Earnings per share Rs 163.21 64.66 174.49 200.66
Price earning ratio Times 7.68 15.39 6.9 7.08
Dividend per share Rs 103.5 30 115 140
Dividend yield % age 8.25 3.02 9.55 9.85
Return on equity % age 26.61 12.34 34.25 42.92
Other Information
Units sold Nos. 57,731 28,837 66,211 64,000
Units Produced Nos. 59,187 28,519 65,346 62,886
Manpower Nos. 2,943 2,855 3,349 3,266
Contribution to National Exchequer Rs in ‘000 71,802,435 35,927,543 52,307,841 48,843,141
Financial Ratios (Comparison with past performance):
Financial Ratios (Comparison with the industries):
Automotive Brands in Pakistan % Mean Value of Market Shares

Suzuki 29
Toyota 26
Honda 25
Nissan 10
Kia 6
Daihatsu 4
 SWOT MATRIX OF INDUS MOTORS:
S Internal Strengths W Internal Weakness O External T Threats
Opportunities
1 Skilled labor 1 Dependency up on Imported Engine a New Products a Increase in Labor Cost

2 Customer Loyalty 2 Weak Supply Chain increasing Back b Increasing income levels b Cost Rising exchange
Logs
3 Financial Leverage 3 The company have high staff turnover c Demand for Hybrid Vehicles c Increasing competition
Toyota Production System Untimely resolution of customer
4 (Strong Management 4 complaints d High Industry Growth Rates d Consumers preference towards
Imported Vehicle
Philosophy)

Availability of Substitute products

5 Brand Value and Presence 5 Weak technical Expertise e Import Taxes e like Green line, Auto, Rickshaw
Taxi etc.

Ride sharing application has

Joint Venture between TT
6 Cand HOH f Increasing Population f changed consumer purchase
behavior

7 Efficient Customer Service     g Innovative Work Practices g Market Saturation and

Competitive Pressures
8 Pakistan’s Largest Vehicle            
Producer
9 Strong Distribution network            
 SWOT MATRIX OF INDUS MOTORS:
  SO Strategies   WOStrategies

Utilize Toyota Production system efficiently to ensure lean and just Dependency on Imports can be reduced as the government has
4g in time production, innovating work practices to ensure maximum 1e levied taxes on import the company can look into the market for
production to reduce backlog. production and technical expertise For engine manufacturing.

Weak supply chain has caused immense backlog to be build, the time
5c,d Using Toyotas Brand Value and Presence to diversify the hybrid 2/4g to deliver a car has moved up to 6months. Innovative work practices
range of cars in the market. can be used to make sure That JIT supply chain is in place.

High industry growth rate and skilled workforce makes it possible to Increasing population can be scrutinized to find capable technical
1d increase the production and meeting the evergreen demand of the 3,5/f resources who can add value to the business, this can also help in
market Reducing the staff turnover.

Being the largest vehicle manufacturer, IMC can leverage on the

8e,f,d government taxes on imports and incorporate new vehicles in their
manufacturing line to cater For the growing market need.

 
9/8,b,f A strong distribution network can help cater to the increasing
population.

7/5,b Efficient customer services to grow their clientele.

 SWOT MATRIX OF INDUS MOTORS:
  ST Strategies   WT Strategies

Utilizing their financial leverage to meeting the increasing labor By increasing local manufacturing and expanding pool of vendors
3,a cost can ensure motivated workforce. 1,b the effect of Foreign exchange Fluctuation can be catered.

Brand Value and Presence can be utilized in a manner to By increasing their own technical expertise, tough competition can
5,d influence the consumers towards purchasing Toyota rather than 5,c
other vehicles. be given to new entrants.

Strong distribution with efficient customer service can be Incentivizing the staff by bonuses and remuneration; employing
7,9f utilized to pitch Toyota as a premium ride Sharing vehicle for 3,a
best HR practices cannot only reduce Staff turnover.
businessmen.

Utilize their financial leverage to cater for the competition By introducing new variants and models in the market, IMC can
5g pressure by reducing cost, improving process and increasing 5,g create pressure for the new entrants and leverage its existing loyal
quality. customer base to hamper the entry Of competitors.
SPACE MATRIX OF INDUS MOTORS:
Internal Dimensions External Dimensions
Financial Strength (FS) +1(worst) +7(Best) Environmental Stability (ES) -1(best), -7(worst)
   
Return on Equity +5 Inflation -3
Sales +5 Barriers to Entry -4
Inventory turnover +6 Demand Variability -2
Earnings per share +6 Competitive pressure -4
Price earnings ratio +5 Price range of competing products -3
Average +5.4 Average -3.2

Competitive Advantage (CA) -1(best), -7(worst) Industry Strength (IS) +1(worst) +7(Best)
   
Market share -2 Growth potential +6
Brand Name -1 Profit potential +5
Product Quality -2 Financial stability +5
Customer loyalty -2 Ease of entry into market +2
Financial Position -1 Competition +4
Technological Advancement -2 Average +4.4
 Average -1.7  
 
Total Y-axis Scores = FS+ES = 5.4+(-3.2) = 2.2
Total X-axis Scores = CA+IS = (-1.7)+4.4 = 2.7
SPACE MATRIX OF INDUS MOTORS:
In space matrix we have observed that company
will pursue aggressive strategies.

we calculated the score and the final result was

+2.2 on y-axis and +2.7 on x-axis.

When we plot these two points on the space

matrix the directional vector makes it evident that
the company will pursue aggressive strategy.

These points specify that firm’s financial strength

is a dominating factor in the industry so we would
suggest firm to adopt market
• Penetration strategy or
• Product development strategy.
BCG MATRIX OF INDUS MOTORS:
  High Relative Market Share Low Relative Market Share

High market growth STAR QUESTION

 Corolla  Hilux
 Yaris  GLI
 
Low market growth CASH COW DOG
 Fortuner  Cuore
 

STAR QUESTION MARK

• The most valued products • Low relative market share,
• Strong brand loyalty. • High growth rate.
• High relative market share, • Need analysis to increase market shares.
• High growth rate.

CASH COW DOG

• Earns a lot of cash • Low relative market share,
• High relative market share, • Low growth rate.
• Low growth rate. • The product is worthless except in liquidation
 BUSINESS EVALUATION CANVAS MODEL:
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments

Includes manufacturers of parts  Good relationship with suppliers  High-quality products  Client partner firm • The target customers are the
and components, suppliers,  Just-in-time inventory  Timely delivery  Customer care and Support general public Including old and
dealers, distributors. Toyota Ltd. management  Offer motor vehicles  reputation, young generation, small and large
Outsource most of its vehicles  Research and  with guaranteed long  quality footprint families.
components from the following  Development  useful life and with less  delivery time • Online and off-site shoppers and
partners:  Innovation depreciation  personal assistance other with financial capacity.
 Agriauto industries limited  Affordable pricing  after-sales • The segmentation is based and
 Agriauto stamping  Offer cars for best   demographic, geographic, and
company PVT. LTD.  performance and ability to psychological factors.
 Thal Limited. Key Resources withstand heavy loads Channels • People who need heavy Duty
 Auvitronics limited.  Total Quality  The low rate of errors and  Dealers vehicle.
 Habib insurance company.  Management system faults  Web site
 Toyota Product System  Service centers
 Dealers in deferent  branches
 countries across the  showrooms
 world
 Development staff
 Workshops
 Long-term management

Cost Structure Revenue Streams

 Expenditures within the budget  Customer service
 Investments in technology and R&D  Car sales
 Marketing, and advertising  sales of spare parts
 Timely payments to suppliers  Eliminated wastes
 Significant investment in human capital  Cost saving
 Process maintenance, Distribution  
BLUE OCEAN STRATEGY:
 The strategy aims to capture new demand, and to make competition irrelevant by
introducing a product with superior features. It helps the company in make huge profits
as the product can be priced a little steep because of its unique features.
 
 Toyota has explored the new market spaces and untapped market territory not explored
by competitors.

 And for that reason the company has been able to cater the demand of the masses by
proving excellent quality, premium product, cost effective and environmental friendly
variants through innovation and kaizen.

 The company ensures that the product offering are the exceptional utilities to the buyer
and consumers. It is also one of the many reasons that their repeat purchase is higher
than the competition.

 Toyota focus on Lean manufacturing or just in time gives them the competitive
advantage and help them ease the price points with premium quality products.
BLUE OCEAN STRATEGY:
Toyota RAV4 Toyota Prius

Created a new space SUV which was Created a new space of affordable luxury Hybrid
dominated by large trucks. These were car market and it dominated this uncontested
smaller than vans & bigger than cars. It has a market and steadily built market share in tough car
reliability of a car and cargo room of a truck. market.
 ERRC GRID OF TOYOTA (Hybrid Car)

ELIMINATE RAISE
• Higher Mileage
• Environmental friendly
• Enhanced safety protocols
• Harmful CO2 emissions • Quality standards such as speed, design
& performance
• Fuel saving

REDUCE CREATE • High performance, stylish and efficient cars.

• New market segment for hybrid, plug-in
hybrids and electric cars.
CREATE
• Reduced fuel dependency • Experience is different altogether with no
• Engine sound noise & wild acceleration.
• Charged by the engine from regenerative
braking.
Recommendations:
 Technological Innovation - Increase investment in R&D to continuously innovating their product
lines. This will also improve the competitive advantage. With increasing competition, Toyota should
focus more on hybrid and plug in hybrid as per the need of the masses while simultaneously
focusing on improving electric cars.

 Sustainability - Toyota can develop new engines and designs to improve the fuel economy of its
products, especially its trucks. The company can also address environmental concerns through
higher efficiency in business processes. Exploiting these opportunities can help the business
improve brand image, customer perception and customer loyalty.

 Diversification - The company can invest more in developing heavy machinery and Robotics to
distribute its business to these different industries.
THANK YOU