Innovation and New Product Development Case Study

Toyota: Driving Hybrids into the Mainstream

OR

Abstract:
Toyota Motor Corporation, the world’s No. 2 car maker in 2004, was the first to launch a hybrid vehicle, ‘Prius’, in 1997 in Japan and in 2000 in the US. The Prius brought about a revolution in car manufacturing, and opened a niche market for hybrid vehicles.

The case talks about the first mover advantage Toyota got by launching Prius. It discusses the initiatives undertaken by Toyota to bring their environmental friendly hybrid car into mainstream. The case highlights the growth strategy and brand building exercises adopted by Toyota. Looking at the success of Prius, big car makers like Ford & Nissan licensed Toyota’s Hybrid Synergy Drive Technology to produce hybrid vehicles.

Pedagogical Objectives:

• To discuss Toyota’s first mover advantage in hybrid cars
• To analyse the impact of such environment friendly version of cars and imitation by the competitors
• To debate whether it was an advantage for Toyota or was it a commercial risk.

Keywords : Business Strategy; Innovations; Product Launch; Product life Cycle; Innovation Management Case Study; First Mover Advantage; Product Life Cycle