The BCG matrix is a popular tool that businesses use to analyze how well their products and services are performing and to come up with strategies to boost their revenue. This tool was created in the early 1970s by Bruce Henderson (BCG founder)
Today, we will have a detailed analysis of BCG matrix of Toyota to understand how their products are performing in the market.
Background of Toyota
Toyota has been a top car manufacturer for over 80 years. It was founded in Japan by Kiichiro Toyoda in 1933 as part of his father’s loom company. Toyota achieved local success quickly but came to global prominence in the late 1950s—primarily due to the launch of the Toyota Land Cruiser. As of August 2024, Toyota’s net worth is over $249 billion.
Analysis of the BCG matrix of Toyota
Toyota has grown from just making passenger cars to offering luxury vehicles, hybrid cars, SUVs, and various auto parts that are sold around the world. They also provide financing services to their dealers and partners.
It is important to note that the automotive industry changes quickly. Therefore, Toyota’s BCG matrix will also change over time. Let’s look at the key products of Toyota in each category right of BCG.
Stars
Stars are products that are not only making a lot of money but are also in fast-growing markets. For Toyota, Prius, Lexus, and Land Cruiser are the top stars. These models attract different types of buyers and are doing very well in their markets.
Question
Marks Question marks are new products that have not yet proven their long-term potential. For Toyota, the hybrid versions of the Corolla and Camay are Question marks. What’s more, Toyota’s new electric car, Mirai, also falls into this category. The C-HR, which is no longer sold in Canada and the United States, is also a question mark in other parts of the world.
Cash Cows
Cash cows are products that bring in consistent income with little change over time. Toyota’s sedans, like the Camry and Corolla, are reliable money-makers. The RAV4 also fits into this category due to its consistently strong sales.
Dogs
Dogs in the BCG matrix of Toyota are products that no longer generate expected revenue and are often older models that consumers no longer want. Dogs in the BCG matrix of Toyota include the Tundra, Scion, Crown, and Celica.
Summing it up
Toyota has expanded from making only passenger cars to offering luxury models, hybrids, SUVs, and auto parts globally. They also provide financing to their dealers.
Their products are categorized into four types: Stars like Prius and Lexus, which do well in growing markets; Question Marks like the new hybrid Camry and the Mirai, which are still proving their value; Cash Cows like the Camry and RAV4, which consistently earn money; and Dogs like the Scion and Celica, which are outdated and less popular.