From all the competitive forces evident from external environment analysis of Toyota, it has been evident that each of these has a specific influence over the organizations normal functioning. The important success factors in the industry of automotive have been dynamic since the industry’s inception itself. In the initial times, people just required cars and they hardly cared about the cars colours or its accessories. In the world today, customers of cars buy cars only by appropriately evaluating its considerably beneficial features inclusive of colour, texture, speed, value etc. Toyota is leading in terms of offering such product offerings and benefits but the problem lies in the steadily rising new cars sales cost which has only increased by 3 percent in the past 2 years itself (Strott, 2009). This causes customers to have cars for a longer period of time so that purchase is break even causing new car sales reduction. This in alignment with bad economy causes the customers to not sell or purchase new cars. The automotive industry recently has focused on terms of payment in order to help customers battle through difficult economic situations. Toyota is at a disadvantage here especially because people are looking to purchase lesser expensive cars only. New payment plans for the benefit of customers has caused significant drawback to Toyota as a company.
The automotive industry, on the macro level is impacted by various factors. The rate of unemployment and average annual wage is correlated directly to the new cars sales. An example can be quoted here of the recent downturn in economy. Less money was there with the customers in the recent downturn experienced and they were given choice to spend money to buy new cars or spend comparative maintenance in smaller amounts and even old car repairing.