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1 Comparative Analysis Research Student’s Name Course Code and Name Institutional Affiliation Instructor’s Name Date

2 Comparative Analysis Research Introduction General Motors and Toyota Motor Corp are automotive companies entering the electronic vehicle market. Both companies use Porter's Five Forces Model strategy to analyze their position in the Electronic Vehicle market. Despite the same use of generic strategies, Toyota Motor Corp is the second largest company in the Automotive Business, while General Motors lost that title in 2009. Therefore, the general purpose of this comparative analysis is to compare General Motors' business strategies to compete in the EV market, also Toyota's hybrid strategies in that market space. Toyota Motor Corp using the five Porters Models Toyota Motor Corp. uses two generic strategies; broad differentiation and cost leadership (Kawai, 2022). Toyota motors use the broad differentiation strategy to enhance its business and uniqueness in its products, creating a highly competitive advantage. The company uses Porter's Five Forces Models to increase its competitive advantage. Potential New Market Entrants The potential of new market entrants is low to moderate as the barriers to entry into the electronic vehicle market are high. Some hindrances that prevent entry are high capital and high technological needs. Toyota Motor Corp has approximately nine percent market share giving it a strong market position; therefore, the threat of new entrants is moderate. Bargaining Power of Suppliers The bargaining power of suppliers in the automotive electronics industry is moderate since it is the second largest car manufacturer in the world. The country deals with vendors from all over the world. For example, for the company to purchase several components of the car from

3 Japan, it has to deal with two hundred vendors. To ensure flow supply, the company has combined with several vendors; however, it deals with third-party vendors. Bargaining Power of Customers The bargaining power of customers in the electronic vehicle market is moderate to high. Due to the high competition, customers tend to pressure the company to reduce their prices. Nonetheless, the company has fixed prices which limit the bargaining power of customers since there are no cheaper alternatives in the electronic vehicle market. The threat of substitutes Products Toyota Motor Corp reduces the threat of Substitute products by offering products for each market sector. For example, the organization has Trucks, SUVs, Sedans, and Luxury vehicles such as Toyota Land Cruiser and Toyota Supra and others that satisfy each customer's needs. By maximizing the products, the threat of substitute products and customers switching to other companies due to price is not a factor. Competitors in the Industry Toyota Motor Corp's core competencies give the company a high competitive advantage in the Automotive Business. It competes against General Motors, Mitsubishi, Ford, and Nissan. It uses the VRIO Analysis table to compete in the Electronic Vehicles. It has resources such as the capacity for intelligent driving technology, a high manufacturing process, and rapid innovation in research and development. According to (Fedotoy, 2022), despite the high competition in the Electron Vehicle market, Toyota Motor sold approximately two million electronic vehicles in 2021. General Motors uses Generic and marketing strategies.

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4 General Motors have switched from gas to electric vehicle production in the past six years as the market interest and deals have increased. General Motors have used Porter's five models to compete in the electric vehicle market. The competitive strategy applied is cost leadership. As per Porter's model, this generic strategy creates a competitive advantage due to the low-cost attractiveness and the directly proportional products' low prices. General Motors' offers automobiles at prices that are lower as compared to the luxury and premium vehicles such as the Mercedes Benz. These significantly lower prices lure customers leading to General Motors' competitive edge. A strategic purpose based on the generic strategy is intensifying the manufacturing operation effectiveness through automation and constant refinement to support General Motors' competitive edge. The generic differentiation approach has a reinforcing capacity for General Motors, competitive advantage. Differentiation strategy majors on making the products more distinct and attractive based on brand image, features, quality, and other applicable variables. For instance, the differentiation generic combative approach that General Motors' have put in use is the research and advanced efforts geared towards producing energy-efficient automobiles. These products should have distinctive features that set them apart from the competition to ensure they have a competitive edge. This applied generic strategy promotes the technological enhancement and emphasizes General motors' vision and mission statements. General Motors have intensive growth strategies as follows. The primary intensive growth strategy is the market penetration strategy. This approach increases the company sales by increasing the number of sales in the present markets. By expanding the market reach through increased dealerships, GM has improved the access of its products to customers. A competitive advantage that is impactful in market penetration is created through cost leadership. The

5 company aims to continue the expansion of the company's distribution network to promote business growth and development (Michin, 2022). In addition to that, product development has been used. It ensures growth through the selling of products. Each new product translates into a potential increment of the GM's revenue. This supports the differentiation generic combative approach by majoring on the distinctiveness of design and elements in the new products(Xu, 2020). The objective of GM based on product development is to attain of high innovation rate in the development of products. Moreover, market development promotion has been an intensive marketing strategy for growth. This strategy can be used to maximize the competitive advantage through the execution of the market development-intensive growth approach. Lastly, the diversification strategy should be applied to ensure growth through new business. General Motors should obtain car rental services as this will reach the domestic market and fuel business growth by reducing the pressure to purchase automobiles. Conclusion General Motors and Toyota Motor Corp use generic cost leadership and differentiation strategies to enhance their electronic vehicle market sales. The two companies are among the most prominent electronic car manufacturer in the EV market. They both have high innovation and other resources, such as the capacity for intelligent driving technology, High manufacturing process, and rapid innovation in research and development. Nonetheless, the companies contrast in different ways since, in 2021, Toyota Company managed to sell approximately two million electronic vehicles while General Motors sold approximately five hundred and fifty thousand electronic vehicles. Toyota uses hybrid strategies such as its hybrid technologies, which have created a two-generational patent ahead of its rivals. At the same time, general motors' core

6 competencies focus on creating cars for old aged people by making minimum changes in their car models each year. While both companies use the Porter Five models, General Motors uses intensive marketing strategies to promote its market model. However, unlike the high amount of different products in the Toyota Motor Corp, which maximizes their sales General Motors has only a decent number of substitutes; hence their sales are low, and the customers are more likely to switch. Toyota Motor Corp is popularly known for its innovative culture, which has kept it ahead of its competitors by introducing the most innovative electronic cars, unlike General Motors. General Motors do not have an innovative culture; it uses the same models of its cars and only enhances them as time passes. Generally, the aforementioned strategies elaborate and justify why Toyota Motor Corp is faring better than General Motors.

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7 References Fedotov, P. (2022). Critical Analysis of the Electric Vehicle Industry. Exchanges: The Interdisciplinary Research Journal , 10 (1), 43–56. https://doi.org/10.31273/eirj.v10i1.362 Kawai, T. (2022). Evaluation of Toyota’s Strategy for Electric Vehicles in Counteracting Platformers —Based on the Theories of Dynamic Managerial Capabilities and Dynamic Platform Strategy—. Journal of Strategic Management Studies , 14 (1), 67–87. https://doi.org/10.24760/iasme.14.1_67 Minchin, T. J. (2022). “A Gallant Fight”: The UAW and the 1970 General Motors Strike. International Review of Social History , 1–33. https://doi.org/10.1017/s0020859022000293 Xu, R. (2020). Analysis of General Motors Company between 2018-2020 . https://www.clausiuspress.com/conferences/LNEMSS/EAIS%202022/Y0846.pdf

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