Any organization main task is to satisfy their customers and
also complete the basic needs of the customer for the benefits of their
organization and this can be done through the use of business level strategies.
The main aim of these business level strategies is to complete the need of the
customers and provide value to their customers for gaining a competitive
advantage over the other organizations. These business level strategies are
referred to the basis position of the industry that is related to the competitors
and also to the porter five forces model. Five porter of the Toyota is given below;
Competitive Rivalry
Bargaining power of supplier
Bargaining power of buyer
Threat of substitutes
Treat of new entrants
Competitive Rivalry in Business level strategies
Toyota deals with the strong force of competition, and having
High aggressive firms
Differentiation and High variety
Large firms have low numbers
Bargaining power of supplier in Business level strategies
The aim of the Toyota suppliers, is to influence and the
improve the business .there are external factors in the automobile industry for
environment;
Population of supplier is moderate
Overall Supply is high
Forward Integration of supplier is low
Bargaining power of buyer in Business level strategies
Customers of Toyota is directly affected, to the business by
the revenue’s. There are external factors to contributing the bargaining of the
buyers;
Switching Cost is low
Quality information is high
Availability of substitutes is moderate
Threat of substitutes in Business level strategies
Substitutes effected the Toyota business through completing
by the company products,
Switching Cost is low
Availability of substitutes is moderate
Low convince in substitutes
Threat of New Entrants in Business level strategies
The potential competitors, for the new entrants that is
threaten of Toyota;
Capital Cost high
Brand development cost is high
Supply Chain cost is high ( FERGUSON, 2017)
References on Business level strategies
FERGUSON, E. (2017, Feburary 2). Toyota’s Five Forces
Analysis (Porter’s Model). Retrieved from
http://panmore.com/toyota-five-forces-analysis-porters-model
Martin, M. (2018, Septemebr 5). Porter's Five Forces:
Analyzing the Competition. Retrieved from https://www.businessnewsdaily.com/5446-porters-five-forces.html