Case Name :      Toyota Australia in Peril

Authors :           Veena Keshav Pailwar

Source :             Ivey Publishing

Case ID :            W15108

Discipline :        General Management

Case Length :    08 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

When General Motors Holden announces its plan to exit from car manufacturing in Australia, Toyota faces a decision dilemma amid losses and adverse business and economic conditions. Should it continue as the country’s sole vehicle manufacturer and wait for business and economic scenarios to change favourably, or should it exit the market? Toyota’s position is assessed by applying microeconomics concepts, including the optimal scale of operation, minimum efficient scale of operation, economies of scale, short-run and long-run cost analyses, concentration ratio and fragmented markets.