Exploring the Internal Dynamics of Toyota: A SWOT-Based Examination

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Communication for Academic Purposes 1
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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Conclusion..................................................................................................................................6
References..................................................................................................................................7
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Introduction
The purpose study is to focus on the internal factors of the Toyota automobile Company.
Kiichiro Toyoda was the founder of the company. The company is known for its innovation
and recognition in the market and it is the leading brand in manufacturing in UK. The
strengths, weaknesses, threats and opportunities are discussed in this study to have clarity
about the inner environment of the company. The main strength of the company is it
recognition in the market and as result, most of the customers visit their company for their
innovative vehicles. The company has some faults in the designs of the engineers and it the
weakness of the company. The opportunities like growing demand and many others are
discussed in this study.
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Discussion
The Toyota automobile Company is the second wealthiest and largest manufacturer in the
world. The tool SWOT is used here to examine and describe the internal factors, like,
strength, weakness, and opportunities of the company.
The main strength of the company is that it always tries to produce vehicles with new
innovations and as a result, the company is the first choice to the customers for its
innovations (Hibino et al., 2017). They have a strong focus on the development and the
research for the manufacturing of innovative vehicles. They are forward looking and they use
some innovative technology in their manufacturing process, which gives a tough
competition to the rivals (Law, 2017). The other strength of the company is that it has hold its
reputation since 1937 and it is the most recognizable brand to the customers still. It is the
seventh valuable brand according to Inter-brand and Forbes. The brand value of the company
is closely linked to the recognition and reputation of the brand. Moreover, sales operations,
research and advertising worldwide help the company to increase the growth of the selling
rates of the vehicle. The recognition of the brand helps to introduce their new vehicle in the
market so easily and without spending more money.
In the last year, the Toyota faced some problems because of the faults in engineering design.
The weakness of the company is that they have no high engineering skills, but still they have
high skills in the process of the production. In the last year, Toyota recalls numerous
vehicles and as a result, it affected the market share and even it causes huge financial losses.
It not only decreased the price of the share, but also it affected the brand image to a lager
extent. The other weakness of the company is expressed when they decided to enter and run
their business in European market because they have no experience how to deal with the
suppliers. As a result, the company faced losses due to their strange decision and investment.
The demand of the electric vehicle is the growing opportunities for the Toyota Company.
However, if the company produce the electric vehicle, the selling rates of their company will
gradually increased. Moreover, the other opportunity to the company is that they must
produce mini cars because of the demand of the customers. However, if company includes
hybrid engines and electricity to their green cars, the production of the harmful gases like
CO2 will gradually decrease (Zokaei, 2016). As a result, they can attract their customers
around the world, which is positive to the economy.
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The growing threat to Toyota Company is global competition in this industry because it can
decrease the selling rate of the Toyota Company (Law, 2017). The customer can be confused
to choose the right automobile company due to the globalization. Other increasing threat of
the company is the increasing price of the parts and raw materials for the production. As a
result, the production cost of the vehicles is increasing in the last few years and the selling
rate can be decreased for the high price of the vehicles. In the market, many competitors are
introducing their company with very low costs of the vehicles (Li, 2018). As a result, the
demand of the Toyota Company is decreasing for their high price of the vehicles and so, the
company is facing a huge loss.
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Conclusion
The study presents the internal factors of the largest automobile company Toyota. The tool
SWOT is used here to describe all internal environmental factors of the company. However,
though there are many opportunities for the company in the present environment, there are
some factors, which are causing threats to the company. The study presents all the growing
opportunities and threats and the strong points, weak points of the company. However, if the
automobile company can overcome all the threats and use the opportunities rightly according
to the present situation, they can fulfil all their aims and goals.
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References
Hibino, S., Noguchi, K. and Plenert, G., 2017. Toyota’s Global Marketing Strategy:
Innovation through Breakthrough Thinking and Kaizen. Productivity Press.
Law, C.M., 2017. Motor vehicle manufacturing: the representative industry. In Restructuring
the Global Automobile Industry (pp. 1-18). Routledge.
Law, C.MRestructuring the glob., 2017. al automobile industry. Routledge.
Li, Z., 2018. Business Network Positioning Analysis of Toyota. American Journal of
Industrial and Business Management, 8(07), p.1693.
Zokaei, K., Lovins, H., Wood, A. and Hines, P., 2016. Creating a lean and green business
system: techniques for improving profits and sustainability. Productivity Press.
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