TOYOTA & the Global Market for Hybrids
The focus of this paper is on the fact the major automobile manufacturers have now developed hybrid vehicles that can substantially reduce both oil consumption and adverse emissions thus contributing to solving the twin problems of the looming oil shortage and global warming. Toyota in particular is leading the way in this regard and has put considerable competitive pressure on other manufacturers due to the success of the Prius and their commitment to producing a wide range of hybrid vehicles. This paper details their global hybrid strategy and how they are leveraging their lead and R&D to further put pressure on other producers and how this is likely to affect the demand for hybrids over the next several years and its impact on the global auto industry.
Keywords: Toyota, Hybrids Automobiles, Oil Demand, Global Warming, Environment
Dr. William Rapp
H. J. Leir Professor Of International Business, School Of Management, The New Jersey Institute of Technology
He received his doctorate from Yale University in Economics as a National Science Foundation Fellow. His Masters degrees in Economics and Japanese Studies are from Yale and Stanford Universities, the later as a Ford Foundation Fellow. His Bachelor degree in Economics is from Amherst College, magna cum laude and Phi Beta Kappa. His teaching and research focuses on international business and strategy, especially using technology to gain a competitive advantage.
He has had an extensive international career in academia, business and government and joined NJIT after completing a year in Japan as a Fulbright Scholar and APSIA Visiting Professor at Ritsumeikan University in Kyoto. While in Kyoto, he assessed the political economic impact of Japan’s rapidly aging population while lecturing on the Asian Financial Crisis and the History of Investment Banking. He also completed under a Sloan Foundation grant a book, Information Technology Strategies, published by Oxford Press in 2002 that was then translated and published in Japanese in 2003. His current research continues to focus on issues that relate to how to create a sustainable advantage in a global environment. He has recently finished projects on Japanese convenience stores as a robust model of e-commerce and their competitive challenge in retail banking as emerging mini-banks plus related research on UPS. He is currently researching projects on Toyota’s Hybrid Technology strategy and the globalization of major law firms.Dr. Rapp has been the Chair in Economic Relations with Japan and International Business at the University of Victoria in Canada, a Senior Research Fellow at Columbia University's Center on Japanese Economy and Business and its East Asian Institute, and the Toyota Visiting Professor of International Business at Columbia. He continues as a Senior Research Associate at Columbia where he just completed directing two multi-year projects under grants from the US-Japan Friendship Commission and the Sloan Foundation that examined US, EU and Japanese firms’ use of information technology to improve global competitiveness. Before entering into fulltime teaching and research, Dr. Rapp was active in business and government as Executive Director for Bank of America's Corporate Finance Group in Tokyo responsible for North Asia, Vice President at Mitsui Nevitt Capital Corporation in charge of Mergers and Finance, and Commercial Counselor at the US Embassy in Tokyo. Prior to his leave with the Federal Government, he was group head Bank of America's Project Finance Section for Mining and Minerals worldwide and a Vice President with JP Morgan. Earlier in his career he was a consultant with the Boston Consulting Group in Boston and Tokyo, an adjunct professor at NYU and Fordham Universities, and an economist for AID in Korea and Vietnam. Elected a director of the Japan Fund in 1991, he continued in this capacity until 2005 and was a member of the executive, audit and valuation committees. He was a board member of the Association of Japanese Business Studies from 2003-2005. He has written more than 60 individual and joint publications on various aspects of trade, international business, and corporate strategy plus presented many papers, given congressional testimony and public speeches on these topics. Major fields of policy, economic and business research include product cycles, trade and investment strategies, industrial policy, international finance, intellectual property, information technology, US-Japan competitive interaction, and Japanese economy and business.
Dr. Rajiv Mehta
Professor, School Of Management, The New Jersey Institute of Technology