Strategic Options For The Australian Market Focus On...

3 Strategic options As a result of the analysis of Toyota Australia, three options have been identified for the company to pursue. †¢ Option 1 – Continue with existing 3-pronged strategy and expand operations within the Australian market focus on hybrid/autonomous technologies †¢ Option 2 – Maintain 3-pronged strategy, seeking to leverage government support †¢ Option 3 – Remove two prongs, greater focus on the existing importing global model. Along with reducing the local manufacturing presence, and expanding the existing dealer network. 3.1 Option 1: Continue with existing 3-pronged strategy and expand operations within the Australian market focus on hybrid/autonomous technologies The first strategic option proposed is. Expand operations†¦show more content†¦The addition of a technology and RD strategy by expanding Australian operations to focus on hybrid and autonomous technologies provides opportunities to develop competitive advantage in the Australian market by providing Australian made vehicles. In addition, this aligns with the Federal Government’s National Innovation and Science Agenda (NISA). This option is not without it’s risks such as the higher production costs in Australia over other Toyota plants in developing economies. In addition, the geographical remoteness of increasing shipping fees. Equipment and parts availability not to mention the overall market acceptance of Hybrid technology thus this option is very much a long term approach. A SWOT analysis for this option is outlined below in figure six. Figure 6 – Option one SWOT analysis 3.2 Option 2: Maintain 3-pronged strategy, seeking to leverage government support Option 2 maintains the current three pronged approach, stepping up lobbying of the Federal government and Victorian government. To support the automotive manufacturing industry in Victoria. Since the release of the Productivity Commissions (2013) report into government support for the automotive industry, the situation has changed. †¢ There has been a decrease in the Australian dollar making exports more viable †¢ With the exit of GMH, Ford, and Mitsubishi. Toyota is the last remaining automotive manufacturer operating locally. †¢ The mining downturn and loss of