Toyota SWOT Analysis for Strategic Management

This paper discusses the SWOT analysis of Toyota Company for strategic management. It analyzes the strengths, weaknesses, opportunities, and threats of the company. The paper also highlights the company's workforce, production, and competitors.

Strategic Management

Strategic Management
Table of Contents
Toyota SWOT Analysis...................................................................................................................1
Strength............................................................................................................................................1
Weakness.........................................................................................................................................1
Opportunities...................................................................................................................................2
Threats.............................................................................................................................................2
References........................................................................................................................................3
Introduction
In this paper the discussion will be made on the Toyota Company by taking into consideration
SWOT analysis as a strategic concept. In this strength, weakness, opportunities and threats will
be analyzed of the company.
Toyota SWOT Analysis
Strength
Toyota is known as the leader of the manufacturing and production sector. The company takes
into consideration the approach related to total quality management as it can help to maintain the
goodwill in the market. In the sector related to car the company is considered as the first movers.
The hold of the company in the market is strong as in 170 countries the operations are managed.
It has been analyzed that the industry maintains the good image in the competitive market. The
penetration of the company in the market like US and china is good and the company is
considered as the second largest manufactures of the cars on the global platform. The major
strength of the company is related with the workforce. The company has more than 369,000
employees who are managing the activities on the global platform. Through this the company
can easily maintain its competitive advantage in the market (Sisson and Elshennawy, 2015).
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Strategic Management
Weakness
The weakness of the company is related with the production. It has been examined that
production of cars are only done in US and Japan which lead to lesser scope to achieve goals. It
has been seen that Japanese car manufacturing has low profits that affect the overall financial
segment of the company. By maintaining the entire manufacturing process in US and Japan, the
company has to suffer from the issue related with economic and political which affect the
workplace. Also the post retirement advantage is given by the company through which it has
been investigated that overall expense enhances.
Therefore, Toyota is emphasizing on maintaining the strong hold in the new market by taking
into consideration the entire functions. Just due to increase in the overall rate of fluctuation in
context to the sales of the company it can be stated that it is affected adversely. The competitors
also focus on considering the advantage where there is no control of the company. There are
many cases where the dealers of the company do not consider the principles and actions and this
enhances the customer’s complaints for the company (Debnath, 2015).
Opportunities
It can be investigated that due to the increase in the gas prices of the hybrid cars the customers
more prefer the products of the company. The main emphasis of the company is on launching the
unique cars models like Aygo which is known as the famous convertible cars liked by the
youngsters (Jeong and Ko, 2016).
Threats
Just due to decrease in the economic conditions the level of competition has been enhanced in
the market. Also exchange fluctuation affects the profits and also the cost of material which are
purchased from the third party. There are many competitors present in the market like Honda is
one of the competitors of Toyota. Also one of the threats is concerned with the change in the
entire demographic pattern. It has been seen that the large families are reducing which lead to the
lesser demand in the family cars (Moeuf et al., 2016). So, the company should emphasis on
proper strategies so that goals can be attained.
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Conclusion
It has been concluded that the company should consider this strategic concept to achieve success
in the market.
References
Debnath, S.C., 2015. Environmental regulations become restriction or a cause for innovation–a
case study of Toyota Prius and Nissan Leaf. Procedia-Social and Behavioral Sciences, 195,
pp.324-333.
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Strategic Management
Jeong, H.J. and Ko, Y., 2016. Configuring an alliance portfolio for eco-friendly innovation in the
car industry: Hyundai and Toyota. Journal of Open Innovation: Technology, Market, and
Complexity, 2(1), p.24.
Moeuf, A., Tamayo, S., Lamouri, S., Pellerin, R. and Lelievre, A., 2016. Strengths and
weaknesses of small and medium sized enterprises regarding the implementation of lean
manufacturing. IFAC-PapersOnLine, 49(12), pp.71-76.
Sisson, J. and Elshennawy, A., 2015. Achieving success with Lean: An analysis of key factors in
Lean transformation at Toyota and beyond. International Journal of Lean six sigma, 6(3),
pp.263-280.
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