Toyota's Business Portfolio: Analysis of Dynamic Capabilities

This report provides a comprehensive analysis of Toyota Motor Corporation's business portfolio and dynamic capabilities. It utilizes the BCG Matrix and GE Matrix to evaluate Toyota's various business units, categorizing them as stars, cash cows, question marks, or dogs, and assessing their market attractiveness and business strength. The report also examines Toyota's dynamic capabilities, focusing on identifying and assessing opportunities, mobilizing resources, and transforming strategic assets. Recommendations are provided for enhancing Toyota's business portfolio and dynamic capabilities, including expanding into emerging markets, prioritizing the Lexus brand in China, increasing production facilities in Asia, and focusing on fuel-efficient and environmentally conscious vehicles. The analysis concludes with suggestions for improving customer safety and complying with government regulations to enhance the company's overall image and competitive advantage.

Business Portfolio and
Dynamic Capability
Report Presentation

BUSINESS PORTFOLIO ANALYSIS OF TOYOTA MOTOR
CORPORATION
Toyota motor corporation would be the best choice for our case study
since it has such as a long history in the motor industry.
The company also has over time recorded good performance therefore
serving as a good model to learn from.
The corporation has different business units which are managed
differently.

The BCG Matrix
• Toyota is a multinational corporation and by the use BCG Matrix we
can be able to know where each product from the different business
units falls.
• As discussed earlier, BCG matrix classifies products into stars, cash
cows, question marks or even dog.
• In each stage, the company takes a specific action to ensure it remains
relevant.
• This model facilitate the corporation in treating each brand of a
product in the best deserving way.

BCG Matrix Cont.…
HIGH MARKET SHARE LOW MARKET SHARE
RAPID MARKET GROWTH RATE STARS
• Lexus
• SUV land cruiser
• Hybrid model of Prius.
QUESTIONN MARKS
• Hybrid model of Toyota Camry
and Toyota corolla.
• Diesel cars for the market in India
and the southeast part of Asia
• The scion brand used by the
youths in the USA
• Small cars in the Chinese and
Indian market
SLOW MARKET GROWTH RATE CASH COWS
• Toyota Camry
• Toyota sedan
• Daihatsu (small cars)
DOGS
.Toyota Celica for youths
Toyota MR2 for youths.
The markets in UK and Europe which
are declining
Toyota Tundra (pick-up)

BCG Matrix Cont.….
STARS
• As observed in. stars happens to be the greatest support f a business. They occupy
the largest market share and also have the highest growth rate.
• In our case, we have the Lexus, land cruiser SUV and the Prius hybrid.
• as discussed earlier this model helps the cooperation know the right action to take
in each category.
• In this case the corporation wise step is to hold the brands in the market and also
protect the market share.
• This steps ensures the company stays at the top f its key competitors.

BCG Matrix Cont.….
Question marks
• This are some of the potential brand that a company may have.
• there is great hope in this brands/ product as they have a high growth
rate despite them occupying a small market share.
• In our case, the corporation has great hopes in brands such as scion.
Camry among others.
• The company now aims to see that this brands occupies a bigger
market share
• All it is doing here is trying to build these brands so that they can
penetrate into the market.

BCG Matrix cont.…
Cash Cows
• This are products that are already at their maturity stage.
• The products already occupies a big market share but on the same
note do not have an appealing growth rate.
• In our case study, the corporation has several brands such as corolla
Camry and the Innova.
• in this category, the company seem to be harvesting so as to get a lot
of profits before it starts declining.

BCG Matrix Cont.…
Dogs
• This are product that are at their worst stage. They experience the
lowest market growth and also occupies a small market share.
• in the Toyota corporation, such brands includes Celica and the tundra
pick-ups.
• the company here is working in diversification where the look for
alternative brands.
• it could also decide to completely drop the product.

GE Matrix
BUSINESS
STRENGTH/
POSITION
HIGH Invest
selectively
Grow or
invest
Grow or
invest
MEDIUM Either harvest
or divest
Invest
selectively
Grow or
invest
LOW Either harvest
or divest
Either
harvest or
divest
Invest
selectively
LOW MEDIUM HIGH
ATTRACTIVENESS OF THE INDUSTRY

GE Matrix cont.….
• As observed, the nine cells can be grouped into three categories as
the colors explicitly show.
• This simplifies the decision making process in the strategic
management.
• Below are the faces:
1. Go on
This phase passes a signal that one can go ahead to making decision.
For example, since Toyota has been globally accepted, it should now go
ahead to perusing larger markets for its corolla brand.

GE Matrix cont.….
2. Take time and watch
This phase on the other hand directs a company to hold on the current
strategies.
In our case, the brands that falls on these category are Cuore and
Quaris. The company is giving this product some good promotion
techniques.
In some cases brands in this category turns out to be the best giving the
company some huge amounts of profits.

GE Matrix cont.….
3. Halt
This is a stage that gives a directive to a company to stop or rather drop
the product.
This makes the company avoid dangers that would arise from arise
from uninformed decisions.
The company is able to stay in an updated position at all times.