Swot analysis of Toyota motor corporation?

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2014-07-31 19:55:41

Toyota Motor Corporation Strengths Global organization,

with a strong international position in 170 countries worldwide.

High financial strength (1997, sales turnover, £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.

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