Business Report: SWOT Analysis of Toyota Corporation

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Toyota. The analysis highlights Toyota's strengths, including a strong focus on research and development, and its status as a recognizable automotive brand. Weaknesses include a partial global presence, a technology gap compared to Tesla, and an inferior brand image compared to some competitors. Opportunities include collaborations for tech-innovation and competitive strength. Threats to Toyota's market position include stiff competition, especially in the electric vehicle market, and poor safety ratings that affect consumer trust. The report examines these factors, providing insights into Toyota's current market position and future challenges and opportunities within the automotive industry.

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.
1. Collaboration: Toyota artificial intelligence venture has recently collaborated with
Carbice, an Atlanta based nanotech developer. Nanomaterials basically helps in making
car lighter, stronger and more durable quieter, cooler and safer. The main reason is to
solve the issue of rising temperature in the electronic cars as the Toyota vehicles gets
heated easily. So, in order to fix this problem company is working with this high-tech
developer to produce more promising and efficient vehicles in future. (In-depth SWOT
analysis for Toyota: Strengths weaknesses opportunities & threats 2021)
2. Tech-Innovation: Toyota is expanding in the areas of new innovative technology like
Fuel efficient cars, Self-driving cars and the company is also working on making flying
cars technology. Sky-drive a Japanese based start-up company is launching a manned
tested flying car (Lyon,2020). This gives an opportunity to the Toyota to collaborate with
this new Japanese start-up & to further expand their technological development.
Moreover, many sectors are adopting the combination between Cloud based and
Artificial Intelligence technology to improve the way it treats with its customers. Cloud
technology is increasing at a rate of 19.88% and it is estimated to touch 70 billion dollars
by the end of year 2022. (In-depth SWOT analysis for Toyota: Strengths weaknesses
opportunities & threats 2021) (Team, SWOT analysis of Toyota: Toyota Strengths
& Weaknesses 2021 2021)
3. Competitive strength: The main competitive strength of Toyota is brand value, which
have increased with the pace of time while maintain a reliable reputation. There are seven
strategies for making a high-level brand. Out of seven Toyota company holds a position
in five strengths. As a global company, Toyota is entering into new markets to enlarge its
business. The company’s productivity is expected to rise with the new technology. By
entering in world market, it will help the company to gain entry into new markets and
enlarge its global production level. (In-depth SWOT analysis for Toyota: Strengths
weaknesses opportunities & threats 2021)

Threats.
1. Stiff Competitors: As many companies are entering into car manufacturing industries,
this has increased competition in the market it & have made it tough for Toyota to sustain
its competitive edge. For instance, Tesla is already way ahead of Toyota in
manufacturing fully electric cars whereas Toyota is still struggling to catch up. In the first
eight months in year 2021 Tesla has sold 473,136 electric cars worldwide more than any
other electric car manufacturer. This makes very hard for people to trust. As they think
that Tesla is more reliable than Toyota. By this value of the company in market also
decreases which is not good for Toyota to sustain its competitive edge in future. (In-
depth SWOT analysis for Toyota: Strengths weaknesses opportunities & threats 2021)
(Tesla Revenue and Production Statistics for 2022 2022)
2. Electric Vehicles: Toyota is entering the electric vehicle market very likely as compared
to other competitors such as Tesla. Tesla has been manufacturing electric cars since 2008
and in 2022 Toyota is going to introduce its first electrical vehicle that is RAV 11.
Toyota will take a couple of years to match up with the production as TESLA is already
14 years ahead of it. (In-depth SWOT analysis for Toyota: Strengths weaknesses
opportunities & threats 2021)
3. Poor Safety Rating: Due to a couple of reasons Toyota have been receiving poor safety
ratings from insurance institute of highway rating due to a bunch of reasons which
consists of faulty airbag wiring, airbag failure in Toyota (Toyota recalls, defects, and
safety issues), which have caused decrease in the trustworthiness of the company as
people do not feel safe while purchasing a Toyota branded car.

REFERENCES.
 Toyota recalls, defects, and safety issues. Toyota Auto Defects | The Lemon Lawyer.
(n.d.). Retrieved January 22, 2022, from https://www.thelemonlawyer.com/toyota-auto-
defects Tesla Revenue and Production Statistics for 2022. Backlinko. (2022, January 6).
Retrieved January 22, 2022, from https://backlinko.com/tesla-stats
 In-depth SWOT analysis for Toyota: Strengths weaknesses opportunities & threats. Shark
Tank Updates. (2021, April 20). Retrieved January 22, 2022, from
https://biznewske.com/swot-analysis-for-toyota
 Sudhakaran, A. (2021, September 11). Toyota SWOT analysis 2021: Quick Reference
Guide. PESTLE Analysis. Retrieved January 22, 2022, from
https://pestleanalysis.com/toyota-swot-analysis
 Team, S. W. O. T. A. (2021, October 20). SWOT analysis of Toyota: Toyota Strengths &
Weaknesses 2021. Swot Analysis Template. Retrieved January 22, 2022, from
https://www.swotanalysistemplate.com/swot-analysis-of-toyota
 Jurevicius, O. (2021, October 22). Toyota SWOT analysis (6 key strengths in 2021).
Strategic Management Insight. Retrieved January 23, 2022, from
https://strategicmanagementinsight.com/swot-analyses/toyota-swot-analysis