Fwd Digital and Business Environment_MUZ 6 November 2023-R

1 "Digital and Business Environment" Name of Student Professor Name University Name Submission Date Table of Contents

2 Introduction ...................................................................................................................................... 2 1.1.1 Mission Statement Analysis ............................................................................................ 2 1.1.2. Objectives and Strategic Goals ....................................................................................... 2 1.1.3. Historical Milestones ...................................................................................................... 3 1.2. Size and Type of the Company ............................................................................................. 3 1.3. Operational Sectors ............................................................................................................... 3 Environmental Analysis ................................................................................................................... 4 2.1. PESTEL Analysis ..................................................................................................................... 4 2.1.1. Political Factors .................................................................................................................. 4 2.1.2. Economic Factors ............................................................................................................... 4 2.1.3. Social Factors ..................................................................................................................... 4 2.1.4. Technological Factors ........................................................................................................ 4 2.1.5. Environmental Factors ....................................................................................................... 5 2.1.6. Legal Factors ...................................................................................................................... 5 2.2. Porter's Five Forces Analysis .................................................................................................... 6 2.2.1. Threat of New Entrants ...................................................................................................... 6 2.2.2. Bargaining Power of Suppliers .......................................................................................... 6 2.2.3. Bargaining Power of Buyers .............................................................................................. 6 2.2.4. Threat of Substitutes .......................................................................................................... 6 2.3. Ansoff's Matrix Analysis ........................................................................................................... 7 2.3.1. Market Penetration ............................................................................................................. 7 2.3.2: Creation of New Products .................................................................................................. 7 2.3.3. Market Development .......................................................................................................... 7 2.3.4. Diversification .................................................................................................................... 7 2.4. SWOT Analysis ........................................................................................................................ 7

4 Introduction I.1 Company Overview: Mission, Objectives, and History Toyota has adapted its goals in Dubai to accommodate the distinct needs of the local market while staying true to its overarching worldwide purpose, focusing on engaging and retaining customers by offering high-quality products and services. Although this purpose is stated concerning the American market, its core has been modified to resonate in the Dubai setting, where excellent value and customer happiness are equally important. Toyota's goals in Dubai are to lead the market, grow sustainably, and use cutting-edge technology to meet the needs of a changing customer base (Van Agtmael, 2007). Since its market entry into the Middle East, Toyota has built a strong network of dealerships and servicing facilities, guaranteeing its customers' accessibility and convenience (Womack and Jones, 2015). A thorough grasp of local market dynamics and consumer preferences, such as the region's penchant for SUVs and luxury cars, has been the driving force behind this expansion. 1.1.1 Mission Statement Analysis When Toyota's mission statement is examined via the prism of its activities in Dubai, it is evident that the company aligns with the goals of the local market. The focus on premium goods and a fulfilling ownership experience appeals to Dubai's customers, who place a great value on elegance and quality. The flexibility of Toyota's goal is essential to its success because it enables the corporation to modify its strategy to satisfy unique local needs while upholding its global standards. Given the prominence of technology developments and economic diversification efforts in Dubai, Toyota's dedication to innovation is especially noteworthy. The company's emphasis on fuel-efficient and hybrid cars is in line with the sustainability objectives of the United Arab Emirates Vision (Chakraborty et al., 2022). 1.1.2. Objectives and Strategic Goals Toyota's goals in Dubai reflect both its aspirations for the world and its reaction to the particular opportunities and difficulties presented by the regional market. Leading the market in sustainability is a key strategic objective that fits with Dubai's environmental stewardship mission. In light of the emirate's expanding infrastructure for electric mobility, Toyota has been

5 actively marketing its hybrid and electric cars. By customizing its cars to meet the unique needs of Dubai's varied customer base which includes everyone from luxury car lovers to companies needing reliable vehicles for industrial and commercial use the company also hopes to become a leader in innovation (Al Hashemi, 2016). 1.1.3. Historical Milestones Toyota's experience in Dubai is evidence of its adaptability and progressive philosophy. The company's history in the area spans several decades, with key turning points that have shaped its esteemed standing in the industry. Over time, the business took advantage of Dubai's economic booms, timing its expansion to coincide with significant turning points in the city's history, including the booms in the building sector and the rise of the oil industry. The launch of Toyota's luxury brand, Lexus, in the early 1990s marked a significant turning point in the company's history in Dubai (Martínez, 2021). These achievements show not only how far Toyota has come, but also how crucial a part Toyota has played in helping Dubai become a major international center for travel and business. 1.2. Size and Type of the Company The Dubai operation is a vertically integrated corporation, inheriting this style from its parent, the global Toyota Motor Corporation. Because of this organizational structure, Toyota can contribute significantly to the local economy by engaging in a wide range of related business activities in addition to manufacturing automobiles. These activities include the manufacturing of parts, financial services through its financing arm, and even technology research and development. 1.3. Operational Sectors Toyota works in many important automotive areas in Dubai. These include sales of new and used cars, finance, parts and servicing, and possibly most importantly environmental programmers that support Dubai's goal of becoming a green economy.With a lot of good initiatives, Toyota will be directly competing with other industry leaders who also want to take advantage of the changing transportation and mobility demands in Dubai and the broader UAE market.

7 2.1.3. Social Factors Social changes in Dubai have a big impact on how consumers behave while buying cars. The diverse population of the city creates a demand for a range of car types, from luxury autos to useful versions ideal for families living abroad. Social issues like the rise in female employment also allow Toyota to enter new markets because there is a growing need for safe, family-friendly cars. Social expectations and conventions, though, might often present difficulties. For instance, particular populations' preference for luxury cars, the popularity of car leasing over ownership, and the desire for fuel-efficient cars could all have an impact on Toyota's marketing and product strategy in Dubai (Piercy, 2016). If the company wants to stay in the market and expand, it needs to adjust to these societal nuances. 2.1.4. Technological Factors The flourishing technology scene in Dubai offers Toyota a distinctive setting. Toyota's advances in linked automobiles and autonomous driving technologies are in line with the city's quest for smart infrastructure and the integration of IoT devices. Furthermore, the market for Toyota's electric and hybrid cars is strengthened by Dubai's dedication to sustainability and is assisted by an expanding network of charging stations (Ajel, 2023). However, there are drawbacks to this widespread use of technology. To be competitive, one must continually spend on R&D due to the quick speed of innovation. 2.1.5. Environmental Factors Environmental considerations have a big influence on car operations in Dubai. Because of the extreme weather in the Emirate, cars need to have strong cooling systems, which has an impact on Toyota's product changes. Furthermore, Dubai's focus on lowering carbon emissions corresponds with Toyota's creation of low-emission cars, opening doors for the company to take the lead in the market for environmentally friendly car options. Strategic programs in Dubai, such as the "Dubai Clean Energy Strategy 2050," encourage sustainability and renewable energy, which may raise interest in Toyota's hybrid and electric vehicles (Sindi et al., 2021). On the other hand, because emissions criteria must be met, environmental protection legislation may result in higher operating expenses.

8 2.1.6. Legal Factors For Toyota to operate in Dubai, legal considerations are essential. Strict compliance with regulations about consumer protection, emissions, and vehicle safety is mandated under the regulatory framework of the Emirate. Toyota cannot function or sell in the market unless these rules are followed. For instance, Dubai has strict vehicle standards and traffic restrictions, so Toyota must make sure all of its cars comply with local requirements to avoid fines. The UAE's regulations about intellectual property have an impact on how Toyota defends its technologies and handles competition. 2.2. Porter's Five Forces Analysis 2.2.1. Threat of New Entrants The automotive industry in Dubai is characterized by high entry barriers due to significant capital investment, economies of scale, and brand loyalty factors. For Toyota, the threat of new entrants is moderated by its established brand presence, extensive dealer network, and customer trust built over the years. However, emerging electric vehicle (EV) makers and innovative mobility solutions could pose potential threats as the industry evolves towards sustainability. 2.2.2. Bargaining Power of Suppliers Toyota’s bargaining power with suppliers is strong due to its large scale of operations and global procurement strategy. The company's Toyota Production System (TPS) allows for efficiency and flexibility in dealing with suppliers. However, the dependency on specialized components for hybrid and electric vehicles could potentially increase supplier bargaining power. Compliance with these regulations is essential for Toyota to operate and sell in the market (Debnath, 2015). For example, Dubai’s traffic laws and vehicle standards are stringent, necessitating that Toyota ensure all their vehicles meet local regulations to avoid penalties. Intellectual property laws in the UAE also affect how Toyota protects its innovations and responds to competition. Moreover, the UAE's labor laws impact how Toyota recruits and manages its workforce, with implications for operations and costs. The legal landscape around import tariffs and trade agreements, particularly in the context of the Gulf Cooperation Council

10 2.3.2: Creation of New Products Within the Toyota context, product development entails innovation and the launch of new goods specifically designed to satisfy the demands of the Dubai market (Kotler et al., 2015). This involves investing in hybrid and electric vehicles to comply with the region's growing environmental restrictions and concerns, as well as developing new models that satisfy the local preference for high-performance and luxury automobiles. 2.3.3. Market Development Market development for Toyota in Dubai might entail reaching out to new client demographics or extending into previously untapped regions. This can entail tactics like providing cars that are tailored to the requirements of companies or looking into potential in nearby Emirates where Toyota's presence would be less crowded. In keeping with the surge in travel to Dubai, Toyota might concentrate on forming alliances with ride-sharing and rental companies to broaden its brand awareness and customer base. 2.3.4. Diversification Toyota may need to look into new business ventures outside of traditional auto manufacturing and sales to diversify its operations in Dubai. This can entail making investments in cutting-edge technology that are suited to the particular requirements of the UAE market, including the manufacturing of electric vehicles or autonomous driving systems. Furthermore, Toyota may think about service-oriented diversification, including financial services for auto loans, mobility solutions, or even forming strategic alliances with energy companies to build infrastructure for a new line of automobiles. This would support Dubai's innovation-driven economy while simultaneously acting as a buffer against market volatility (Jeong, 2020). 2.4. SWOT Analysis 2.4.1. Strengths Toyota's strong brand recognition, which stands for dependability and quality, is what defines its advantages in the Dubai market. A robust after-sales service architecture and a robust distribution

11 network support this. Cost advantages result from the company's vast experience with lean manufacturing and economies of scale. Furthermore, Toyota's understanding of worldwide supply chains enables effective operations and flexibility in response to market demands. Toyota's diverse portfolio, encompassing a spectrum of vehicles from luxury to economy, places the company well to accommodate a wide range of consumer preferences in Dubai's competitive automotive business (Martínez, 2021). 2.4.2. Weaknesses Toyota has difficulties in Dubai, including its reliance on international supply networks that are subject to geopolitical upheavals that could impair local availability. Although a strength, its wide range of products can sometimes weaken brand identification and complicate inventory management. Toyota faces competition from premium brands that are perceived as more luxurious in the luxury vehicle market (Shah, 2018). Additionally, the company's dedication to innovation demands ongoing large investment, which could put a burden on financial resources, especially in fast-moving markets like Dubai where customer preferences are always changing. 2.4.4. Threats Threats to Toyota's automotive business in Dubai include growing rivalry from both long- standing competitors and recent newcomers, particularly in the electric vehicle market (Solesbury, 2021). The entire automotive industry can be unexpectedly impacted by fluctuations in oil prices. Significant adjustments to operations and product lines may be necessary as a result of regulatory reforms towards sustainability. Additionally, if any worldwide recalls or flaws are made public, the brand may be exposed to reputational concerns that could be exacerbated by the quick dissemination of information on social media. Conclusion and Recommendation 3.1. Key Findings Synopsis Many important conclusions have been drawn from the examination of Toyota's operations in Dubai. A corporate environment formed by political stability, economic growth, and a supportive

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16 class+companies+is+overtaking+the+world, +Simon+and+Schuster.&ots=db7T55c2jz&sig=BludcaWL8EO0fI500py2v850RM8 WOMACK, J. P. & JONES, D. T. 2015. Lean solutions: how companies and customers can create value and wealth together , Simon and Schuster. https://books.google.com/books?hl=en&lr=&id=- Q1ZCgAAQBAJ&oi=fnd&pg=PA1&dq=WOMACK,+J.+P.+%26+JONES,+D.+T. +2015.+Lean+solutions: +how+companies+and+customers+can+create+value+and+wealth+together, +Simon+and+Schuster.&ots=QWsirQT39Z&sig=NUi9Qeism4W33EpdAqbwjjBHxS0