Competitive Advantage - Toyota

COMPETITIVE
ADVANTAGE

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Every organisation affect from various micro and macro environment and develop the
strategy to overcome these factors accordingly. In this study we will discuss the various factor
that can affect Toyota and how they develop marketing plan or strategy with the use of various
tools.
MAIN BODY
Explaining strategy development tool and how are they used in Toyota
Developing strategy is an essential step between identifying organisational objectives and
develop and implement some strategies or make the change to meet them. Strategic planning
include analysing internal and external impacts on the industry and then mapping out an
approach to deal with these impacts (Bharadwaj, Fahy and Varadarajan, 2015). Strategies can be
developed by various tools such as PESTLE, SWOT, Porter's five forces model, Ansoff's model,
Ghemawat's AAA model, Generic strategies, etc. In this essay we are going to use four strategy
development tool:
SWOT Analysis
The SWOT analysis is used in strategic development to identifying organisation's
strengths, weaknesses, opportunities and threats. After identifying these the company can access
how to develop effective marketing strategy by capitalising the strength, minimizing the effects
of weakness of the organisation, organisation will able to create opportunities with the use of its
strength and able to reduce the impact of any threats.
Strength- Toyota have strong market position in various geography across the world and
brand recognition which gives it significant competitive advantage. The industry have strong
focus on research and development which directing to developing new products and strategy,
improving existing products and developing new technologies in the specific areas(Darroch,
Miles and Jardine, 2015). Toyota is known for durability, value for money, reliability and
convenient, also the brand image is based on quality and environmental friendly.
Weaknesses- In the recent past years, Toyota has conducted number of product recall
which can affect the brand image. They spend a lot of money on advertisement which can
increase the cost of the cost of the product. Toyota should develop a plan to cut off these extra
cost which affect the overall cost of the product.
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