Toyota Prius: A Case in New Product Development

            
 
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Case Details:

Case Code : MKTG118
Case Length : 27 Pages
Period : 1997 - 2005
Pub Date : 2006
Teaching Note :Not Available
Organization : Toyota Motor Corporation
Industry : Automobile
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts

Hybrid Cars

Ferdinand Porsche manufactured the first hybrid-electric car in 1898. In the 1960s a few attempts were made to manufacture hybrid cars by applying turbine engines to the production of the vehicles. A turbine-powered race car was introduced in 1967 with the turbine engines powering the wheels through a mechanical transmission.

The need for cleaner and more efficient vehicles led to the development of hybrid vehicles in the 1970s. In 1970, a program called the Federal Clean Car Incentive (FCCI) was started by the US government. This program led to the development of a hybrid prototype in 1972.

The program was scrapped in 1976 by the Environmental Protection Agency (EPA) of the US. In 1993, another program called the Partnership for a New Generation of Vehicles (PNGV) was launched in the US. The partners in the program: Chrysler, Ford, GM, and a few governmental agencies, developed hybrid prototypes but never commercialized them...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Knowledge Management at Toyota

According to analysts, Toyota's success in both the local and global markets was based on its gaining a competitive advantage through implementation of innovative and path-breaking ideas on its production floors. Toyota had focused on learning from the very beginning.

At Toyota, knowledge sharing was intertwined with its people-based enterprise culture, referred to as the Toyota Way. The five key principles that summed up the Toyota Way were: Challenge , Kaizen (improvement), Genchi Genbutsu (go and see), Respect and Teamwork.

The Toyota Way recognized employees as the company's strength and attached great importance to developing human abilities through training, coaching and mentoring. The principles of “Respect for People” and “Continuous Improvement” were at the core of the Toyota Way. Most experts agree that the TPS system at Toyota worked by combining its explicit , implicit and tacit knowledge...

The Original Prius

The original Prius was powered by the THS. The THS was an advanced version of the EMS. THS is a power train that combined an internal combustion engine and an electric motor. It was based on the series/parallel hybrid system. It contained a power split mechanism that divided and sent power through two passages...

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