Milestone 1
Toyota comparative advantage over its rivals
Toyota utilizes both distinction and minimal expense as a conventional system to acquire an upper hand over their rivals in the car business. Toyota's market scope is expansive and incorporates essentially every client in the market to buy a car. Toyota can target such an enormous market since they have something for everybody. Also, Toyota has all price ranges for their vehicles. From the low-value Toyota Corolla line of cars to the costly extravagance line of cars and SUVs with Lexus, Toyota has something for everybody. Toyota separates on different magnitudes from their competitors. Toyota has been highly successful in separating distinctions based on design and quality. This success has prompted Toyota to have the option to make an awe-inspiring brand representation and one that infers quality, durable vehicles when a potential client sees the car. Toyota had some problems but could sustain them because of its proven history of quality, superiority, and technology.
Toyota Supply and demand
Consumers demand more of the product when the price is lower, and when the price rises, the demand falls. Consumers will buy fewer cars when prices increase due to income and substitution. When prices rise, this cause potential buyer to buy a cheaper quality car. Increases will cause a production decrease. The increase could also cause a new market equilibrium, a state of balance, or a stable situation where opposing forces cancel out. The crossover and hybrid cars that Toyota makes significantly increased the fourth-quarter profits to 689.8 billion yen, the profit jump 14 percent. "Toyota expects renewed demand in the United States, its biggest market, to drive that recovery and forecast overall sales to grow 6.4% to 10.55 million vehicles for the year" (Yamamitsy, 2021). Even a chip shortage that hindered Toyota rivals didn't stop the company from maintaining sales and doubling profits in March. Toyota stockpiled the semiconductors that companies use for everything, such as "engine maintenance, car safety, and entertainment systems" (Yamamitsy, 2021).
The GDP of Toyota home country and key market
Japan holds the most significant buying power on earth and is the world's third-biggest economy. With over 5% of the world's GDP and comprehensive, cutting-edge technology and assembling enterprises. Japan plays a prominent part in the worldwide economy. Investors benefit from a business-accommodating climate with a vast and refined customer economy. The country is steady, with solid property security, and an important area for financial investors keen on the Asian market (Japan, n.d.). The GDP increased "7.8 percent at an annual rate, or $432—Billion, in the third quarter to a level of $23.17 trillion. IN the second quarter, GDP increased 13.4 percent, or $702.8 billion" (Japan, n.d.). The econometric models state that Japan's GDP should reach $48200.00 at the end of the year. The primary industries of Japan are agriculture, fishing, assembling, and traveling industry.
Fluctuations in GDP
A rising GDP can lead to jobs creations, pay raises, and an increase in the standard of living. If the GDP starts falling, the economy begins to shrink, which is not good news for workers and businesses. If the GDP falls more than one quarter, this could lead the economy into a recession (BBC, 2021). In the economy, fluctuations can affect earnings, product demand, and prices. Each country's economy varies between times of extension and compression. These progressions are brought about by business, efficiency, and the absolute interest for and supply of the country's labor and products. In the short run, these progressions lead to times of development and recession. Fluctuations can affect investments short and long term. An increase can improve investments in gross domestic products because of the capital that is produced and sold. Business investment is one of the main components that fluctuate between quarters (Business Investment, n.d.) Licenses give proprietors privileges to bar others from making, utilizing, or selling their developments. Creators and adopters can execute more effectively on their products. Patents subsequently produce financial advantages that depend on more effective exchanges and more noteworthy competition for inventions.