The Competitive Advantages for Toyota

in "fueling" the hydrogen, fuel cell technology actually caused more environmental harm then its HEV counterparts. HEV growth was expected to increase dramatically, surpassing 500,000 units by 2006 (see Exhibit 4). Hybrid technology combines existing technology with the innovative, new, environmentally conscious technology. The changes in the vehicle and the environmental benefits of the technology are both substantial. Some of the manufacturers and experts agreed HEVs were the future of the automotive industry because they combined new innovative technology with current performance capabilities and features that consumers were comfortable with. HEVs allowed for consumers to have the benefits of an environmentally friendly vehicle, along with the comfort, performance and convenience of their current automobile. Hybrid technology also "stemmed the tide" of problems with current stakeholders in the industry, by utilizing the existing infrastructure, including gas stations and manufacturing plants, while opening the doors for alternative fuels. The growth in the segment was expected to continue, acquiring share from all segments in the industry.

THE COMPETITIVE ADVANTAGES FOR TOYOTA

Toyota's strategic advantage was to be better able to determine the needs and desires of consumers before they actually express them. Toyota, perhaps because of its early failures in the U.S. marketplace, conducted research to recognize the regulatory, environmental and legislative market drivers that would eventually translate into future purchasing variables for consumers. Toyota used an effective product development process that was able to reduce the cycle time for developing new models, bringing new products to market almost 30 per cent faster than its competitors. This agility gave Toyota a competitive edge in a business environment driven by changes in market trends and government mandates.