Swot analysis of Toyota motor corporation?
Toyota Motor Corporation Strengths Global organization,
with a strong international position in 170 countries worldwide.
High financial strength (1997, sales turnover, Â£131,511 million),
sales growth of 29.3%. Strong brand image based on quality,
environmental friendly (greener), customized range. Industry leader
in manufacturing and production. Maximizes profit through efficient
lean manufacturing approaches (e.g. Total Quality Management) and
JIT (Just in Time) manufacturing and first mover in car research
and development. Excellent penetration in key markets (US, China,
EMEA) and now the second largest car manufacturer in the world,
surpassing Ford. Weakness Japanese car manufacturer - seen as a
foreign importer. Production capacity. Toyota produces most of its
cars in US and Japan whereas competitors may be more strategically
located worldwide to take advantage of global efficiency gains.
Some criticism has been made due to large-scale re-call made in
2005, quality issues. Opportunities Innovation -first to develop
commercial mass-produced hybrid gas-electric vehicles (gas and
electric), e.g. Prius model. Based on advanced technologies and
R&D activity. With oil prices at an all time high - this
investment and widening of product portfolio fits consumers looking
to alternative sources of fuels away from gas guzzling cars. To
expand more aggressively into new segments of the market. The
launch of Aygo model by Toyota is intended to take market share in
youth market. To produce cars which are more fuel efficient, have
greater performance and less impact on the environment. To develop
new cars which respond to social and institutional needs and wants.
The development of electric cars, hybrid fuels, and components
reduces the impact on the environment. Toyota's Eco-Vehicle
Assessment System (Eco-VAS) has helped in production, usage, and
disposal. Continued global expansion - especially in the emerging
markets e.g. China and India, Russia, where population and demand
is accelerating. Threats Saturation and increased competition,
intense marketing campaigns increasing competitive pressures.
Shifts in the exchange rates affecting profits and cost of raw
materials. Predictions of a downturn in the economy e.g. recession,
will affect car purchases (especially new cars). As household
budgets tighten - this could lead a decline in new car sales and
possible rationalization of dealerships. Changing demographics e.g.
number of large families is declining. Undermining the demand for
large family cars. Changing usage - families using the car less for
taking children to schools. Home deliveries. Businesses -
restricting business travel (tele-conferencing). Governments
encouraging alternative forms of transport - cycling and incentives
to use public transport across Europe. Rising oil prices (fuel
costs) and the costs of maintaining cars. Increase in families who
have chosen not to own a car, or decided to use their car less.