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Company Case Prius: Leading A Wave Of Hybrids

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Company Case: Prius: Leading a Wave of Hybrids

1. What micro-environmental factors affected both the first generation and second generation models of Toyota Prius? How well has to Toyota dealt with these factors?

In order for the reader to have an understanding of this question is important to begin by defining Micro-environment. This term is a factor of the Marketing Environment and it consists of the issues that, in one way or another, affect the company's ability to serve its clientele in a close and direct way. This includes factors such as customers, suppliers, competitors, shareholders, employees and media (among others). Having this in mind, it could be safe to state that the micro-environmental factors affecting the first and second generation of the Toyota Prius are the customers and the competitors.

Consumers, getting affected by the gas prices, were looking for an answer to their prayers. Toyota gave them the answer, a vehicle that would allow people to save on gas as well as provide good and efficient service. Once the first generation Prius was released, although not too pretty or fancy, it served to its purposed and customers were buying it.

The other factor, competitors, is pretty obvious. Everybody wants a piece of the pie. Auto makers such as Honda started developing and/or implementing the hybrid system on some of their vehicles. Toyota's answer was to keep developing what already has been a success, the Prius. A second generation was developed and released. This time the new generation was even more fuel efficient. It also included more technical advances, more room and several other factors that would make all types of clientele to be interested.

2. Outline the major macro-environmental factors - demographic, economic, natural, political and cultural - that have affected the Prius sales. How well Toyota dealt with each of these factors?

Macro-environmental factors deal the larger societal forces that affect the microenvironment. Some of the factors are demographic, economic, natural, technological, political and cultural forces. With that said, I believe the macro-environmental factor that affected the Prius sales (in a positive way) is the Natural forces. Now, it would not be fair if I do not mention the technology force as well as the economic one. So there is a vehicle that saves on gas, which means that also helps with the pollution. Technological advances are probably the base of the Prius and this gets even better with the second generation. The first generation was fairly basics while the second generation was release with more gadgets and extras. The prices of the gas keep raising non-stop. That fact definitely affected the sales of the Prius, especially in a society dominated by Sport Utility Vehicles (SUVs)

Macro-environmental factors


Demographics are the study of human societies in terms of size, location, gender or race among other statistics. Based on these factors organizations develop marketing plans to target possible customers.


Basically, economics is the study of how society chooses to use its resources. I believe this factors contributes to the government and other entities to offer incentives towards buying vehicles such as the Prius.


This macro-environmental factor involves the use of natural resources to increase the interest of the customers. To be "green" is what is selling these days. Societies have a great interest and feel very positive about saving the planet. Toyota's marketing team has utilized such factor in a very positive way to cause sensation about the vehicle.


Well, after all, what would society be these days without all the technological advances? New technologies are hitting society constantly. Technology offers the opportunity for enhancement of current products as well as new ones. Toyota, using technology, made customers aware of upcoming vehicle. Utilizing tools such as the Internet it distributes brochures and all types of information about the Prius previous to its release.


What would a society be without the government and its laws? This force is, with no doubt, connected to the economic one. Toyota, along and other auto makers were able to obtain tax and other incentives for people who would buy the hybrid vehicles.



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