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This case, set in the fall of 1995, examines the choices confronting Hiroshi Okuda, Toyota Motor Company’s newly appointed President, with respect to the hybrid vehicle called the Prius. Although we now know that Toyota decided to launch its new ground-breaking product successfully, it was far from clear at the time of the case exactly how the product should be launched. The case highlights the circumstances of the product introduction (positioning, expected sales volume, and pricing issues) on which the success of the introduction hinged.
These issues are very similar to those that each StratSim team will encounter during the competition. Although the Prius is already famous and its introduction is well known, the case has great teaching value as a study in the industry structure, strategic thinking, and leadership in an industry that is very important to the economies of many developed and developing countries.
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