Strategic Analysis of Toyota Motor Corporation: A Comprehensive Study

STRATEGIC ANALYSIS
TOYOTA MOTOR CORPORATION

Table of Contents
INTRODUCTION........................................................................................................................2
COMPANY OVERVIEW..........................................................................................................2
MISSION AND VISION OF TOYOTA MOTOR CORPORATION.................................................2
COMPETITIVE ENVIRONMENTAL ANALYSIS..........................................................................3
APPROACHES TO STRATEGY.....................................................................................................4
COMPETITIVE RIVALRY OR COMPETITION............................................................................4
BARGAINING POWER OF BUYERS OR CUSTOMERS..............................................................4
BARGAINING POWER OF SUPPLIERS....................................................................................5
THREAT OF SUBSTITUTES OR SUBSTITUTION.......................................................................5
THREAT OF NEW ENTRANTS OR NEW ENTRY.......................................................................5
ENVIRONMENTAL ANALYSIS.....................................................................................................6
PORTER’S GENERIC MODEL..................................................................................................6
CURRENT ENVIRONMENT PRACTICES OF TOYOTA...............................................................7
PESTEL ANALYSIS..................................................................................................................8
SWOT ANALYSIS................................................................................................................. 10
FINDINGS AND DISCUSSION...................................................................................................12
CONCLUSION AND RECOMMENDATIONS..............................................................................13
REFERENCES........................................................................................................................... 14
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INTRODUCTION
This study presents various approaches to the strategy. It also highlights the complex
relationships between the organization and its surroundings. It also helps in understanding
the strategic thinking at the global level. Through the study of Toyota Motor Corporation,
the application of strategic ideas into practices is understood.
COMPANY OVERVIEW
Toyota Motor Corporation, a Japanese company, was founded in 1937. The company is
diversified in the regions of Japan, Europe, Asia and North America and engages in the
designing, manufacturing, assembling and selling the commercial vehicles, passenger cars
and minivans, and its associated parts and accessories. Toyota is ranked at number fifth
position in the revenue earnings (Toyota Motor Manufacturing (UK) Ltd, 2018). It is the
largest manufacturer of cars around the world. The annual revenue earned by the
organization is approximately $260.8 billion in the fiscal year 2018. The total number of
employees working at Toyota Motor Corporation is 369,124 in 2018 (Toyota Motor
Manufacturing (UK) Ltd, 2018). The ability of Toyota Motor Corporation is to focus on
creating organizational as well as workforce capabilities in order to develop lean production
and manufacturing philosophy. The guiding principles are used by the Toyota motor
corporation in order to produce reliable vehicles for the sustainable development of society
by engaging innovative as well as high-quality goods and services.
MISSION AND VISION OF TOYOTA MOTOR CORPORATION
The vision of the Toyota motor corporation indicates its long-term strategic direction in the
automobile industry. The Toyota global vision 2020 is looking to the future of cars, people
and communities. The vision statement shows the aim of the company to achieve a
leadership position in the market through growth and development on the basis of quality,
innovation and environmental conservation (Gu, 2010). Company’s vision is holistic that
encompasses human resources, business leadership, product quality and corporate social
responsibility. The mission statement of the company with regards to the automobile
manufacturing and sales business is relevant to strategic actions in technology. It can be said
that mission statement of Toyota includes the strategic actions focusing on its products by
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considering the preferences and expectations of the consumers and on the basis of trends
and market research.
COMPETITIVE ENVIRONMENTAL ANALYSIS
The level of the competition is intense in the automobile industry as the company has to
face some of the major competitors such as General Motors, Ford, Honda and Volkswagen
and so on. There are varied automobile markets that the company competes with the other
Japanese manufacturers such as Honda. It is essential to consider pricing and other related
factors in order to lead the competitors by focusing on the change in dynamic market
effectively and efficiently (Orr, 2010). The company is facing fierce competition from other
Japanese, South Korean, American and German auto manufacturers. The products of the
Toyota are reliable enough to have high resale value as compared to that from other
producers.
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