Toyota Company in China Case Study Example | Topics and Well Written Essays - 4750 words

Toyota Company in China - Case Study Example This paper will use the Porters five forces model as well as SWOT analysis in assessing the market entry strategy employed by Toyota Company to enter the Chinese market. Hill and Jones (2007) affirm that once the boundary of an organisation has been established, strategic planning managers are faced with the task of analysing competitive forces with the organisational climate to establish threats and opportunities. The Porter’s five forces model sheds more light on the five integral forces that shapes competition within an organisation. It also examines the degree of rivalry among firms, the bargaining strength of suppliers, as well as the proximity of the alternatives to the firm’s product as well as the bargaining strength of customers or buyers (Kotler, Berger & Bickhoff 2010). This model stipulates that the higher the degree of strength of each of the five forces, the less the capacity of the identified firms to hike prices and rip maximum returns. In this model, a strong competitive force can be perceived as threat. This is attributed to the fact that stronger competitive forces suppress returns. On the other hand, weak competitive forces can be perceived as opportunity.This is because weak forces enable a firm to make bigger profits (Patnaik 2012). According to Dyck and Neubert (2008), the strength of the five forces can undergo histrionic transformation via time as the firm situations are altered.