SWOT Analysis of Toyota Company

SWOT ANALYSIS.
Strength.
1. Strong focus on research and development: Toyota is a well-established company. The
company is well known for its brilliant ideas when it comes to technology. The goal of
the company is to stay ahead of its competition by introducing innovative vehicles in the
market. One of the major aspects on which Toyota keeps a very huge focus on is the
research and development of products and services. Toyota’s research and development
team keeps its focus on the production of vehicles that are environment friendly. The
company has biggest research facility network as compared to other companies in the
market. The company has 15 research engines among 8 different countries namely Japan,
United States, China, Thailand, Australia, Germany, France, and Belgium.
(Jurevicius, Toyota SWOT analysis (6 key strengths in 2021) 2021)
2. Most recognizable automotive brand: Toyota was established in the year 1937 & since
then, the company became one of the most reputable and recognizable brand in the world.
Consumer reach towards this brand is so high that the company is operating in 190
countries and has produced and sold 8.965 vehicles in the year 2018. By selling this huge
number of cars and with the help of advertising the company has built trust within the
market. With this it becomes easier for the company to introduce new product to the
market with reasonable prices. The company has also received hundreds of awards in the
field of vehicle design, safety, and environmental friendliness. In the year 2018, the
company received 7 IIHS top safety awards for its Toyota Corolla, Prius, Camry,
Highlander and Rav4.Toyota brand reputation helps the company to stay ahead of its
competition. (Jurevicius, Toyota SWOT analysis (6 key strengths in 2021) 2021)
3. Pursuing the vision of zero-emission vehicles: By introducing hybrid cars in the market
company’s focus is to eliminate the pollution and contribute to a pollution free
environment. Toyota makes some of the most reliable green cars in the market and is

continuously improving its technology to attract more people. This kind of innovation is
unique as it is not dependent upon the fossil fuels. The company is also taking its steps
towards making fully electric car with 500 km of range in single charge.
(Sudhakaran, Toyota SWOT analysis 2021: Quick Reference Guide 2021)
Weakness
1. Partial global presence: Toyota has very strong sales in US, Europe, and Japan.
However, it does not show the same figures in the countries like Africa, South America,
and Middle east. It is a huge disadvantage for a global company like Toyota to leave
these regions unexplored. To sustain its brand value in the market the company cannot
afford to leave these countries. (Sudhakaran, Toyota SWOT analysis 2021: Quick
Reference Guide 2021)
2. Technology gap: As far as technology is concerned Toyota is still trying to catch up with
tesla. Although the first hybrid Toyota vehicle launched in 2001 & company is still
struggling to match the technology of tesla. In a teardown of tesla model 3, engineers
found that the tesla is 6 years ahead of Toyota and Volkswagen. can also make a negative
impact on the people’s mind regarding trust because Toyota doesn’t have enough
experience and perfection as compared to tesla. (Sudhakaran, Toyota SWOT analysis
2021: Quick Reference Guide 2021)
3. Inferiority in the brand image: Toyota is a Japanese company, and the image of the
Japanese cars is not as good as German cars which are considered premium. This
inferiority is because people have already had a perspective about Japanese cars that they
are untrustworthy. That is the main reason why people prefer German cars over Japanese
cars (In-depth SWOT analysis for Toyota: Strengths weaknesses opportunities &
threats 2021)
Opportunities.