Individual Assignment 2: SWOT Analysis of Toyota's Loyalty Program

This report provides a comprehensive analysis of Toyota, the Japanese automotive giant, focusing on its background, market position, and customer relationship management. It begins with a brief history of Toyota, highlighting its evolution to become a global leader. The core of the report is a detailed SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Toyota's loyalty program, examining its internal and external strategic factors. The strengths include the company's strong brand image, technological advancements, and efficient supply chain, while weaknesses involve hierarchical organizational structures and past product recalls. Opportunities are identified in growing markets and rising demand for fuel-efficient vehicles, and threats include intense competition and trade tariffs. Based on the SWOT analysis, the report offers strategic recommendations for Toyota, including optimizing its competitive advantages, adapting its organizational culture, and focusing on eco-friendly and hybrid car production. The report also suggests improvements to customer feedback systems, expansion into Asian markets, and fostering a positive internal work environment.

Faculty of Business, Accountancy & Management (FOBAM)
ASSIGNMENT COVER PAGE
Course Details:
Module Code and Title : Customer Relationship Management (MGT 3604)
Programme of Study : Bachelors of Business Management
Lecturer’s Name : William Tan
Semester : Sept – Dec 2020
Assignment Details:
Title of Assignment : Individual Assignment 2
Submission Date : 17th November 2020
Declaration by student(s):
I/We, hereby declare that the attached assignment is my/our own work and understand
that if I/we am/are suspected of plagiarism or another form of cheating, my/our work will
be referred to the Programme Coordinator/Head of Faculty who may, as a result
recommend to the Examinations Board on academic disciplinary action including
expulsion for the SEGi University and Colleges.
Student’s Details:
Name: Hassam Qasim Student ID: SUKD1900211

Table of Content
Content Pages
Background/History of the company 3
SWOT analysis towards Toyota’s
loyalty programe
4 - 6
Strategic Recommendations 6 - 8
References 8
Marking Scheme 9
“Toyota”
Background/History of the company
“Toyota” Jidōsha KK Japan, the Toyota alliance’s Japanese parent group. In the year 2008,
for the first time, it became the largest car maker in the world, exceeding General Motors.

Most of its approximately 1,000 subsidiaries and associates are engaged in the manufacture of
cars, components for automobiles and commercial and residential vehicles. Toyota Area, an
urban center east of “Nagoya”, Japan, the company is headquartered there. In 1933, as a unit
of Toyoda Automatic Drape Operations, Limited which later became the "Toyota" Industries
Company, now a joint venture), a Local company founded by his father, "Toyoda Sakichi",
Toyoda Kiichiro built which afterwards became Toyota Company. The Model AA sedan, his
first model car, was launched in 1936. The following year the subsidiary was formed as the
Kiichiro-headed Toyota Motor Company, Limited. (Britannica, 22 May 2020)
The business grew at a rapid speed in the years between 1960s and 70s and started exporting
significant numbers of cars to international markets. Toyota purchased enterprises such as
"Hino" Motors, Ltd. (1966), a buses and big trucks maker; Nippondenso Company, Ltd., a
producer of motors for electric cars; and "Daihatsu" Motor Company, Ltd. (1967). Toyota is
indeed Japan's biggest car producer for so many years. The company continued to prosper in
the International market, building a reputation for its moderate, energy, and durable cars, like
the Corolla, which was introduced in the year 1968 in USA.
With developments including its global brand, "Lexus" which was introduced in the year
1989, and the first density hybrid-powered car in the universe, the model of Prius in 1997, the
company grown tremendously well in the 21st century. Toyota was published on both the
London Stock Market and the Stock Market of New York in year 1999. With the introduction
of its Scion brand in (2003), the business started to grow to foreign markets, primarily
targeting younger customers. In several countries around the world, Toyota has manufacturing
operations and dealers. Its affiliates produce rubber and decanter products, iron, deep red,
automated mills, and silk and woolen goods, in additions to auto parts. (Britannica, 22 May
2020)
Toyota also offers loyalty program which allows customers a good amount of rebate on the
purchase of cars which is purchased on lease.
SWOT analysis towards Toyota’s loyalty programe

As we are going to discuss about the SWOT analysis of “Toyota” Motor Company it will
addresses the internal and external strategic variables in the organization. The “SWOT”
structure defines the most critical opportunities, challenges, and organizational vulnerabilities
to be tackled by Toyota using its strengths. Toyota tackles these conditions successfully as a
global pioneer in the car industry. “SWOT” analysis offers insights into the potential factors
on the business of the organization. Maximum reliability by which Toyota operates.
Strengths:
 Strong image of the company
 Progressive technology
 Supply Chain Globally
Related to the business drive of a vehicle reflects a variety of quality perfection and value of
acquisition which surpasses rivals, Toyota is known to a very common for customers (Hirsh,
Hedlund, & Schweizer, 2003). "Toyota is recognized for shaping a good design and intent
when it comes to innovation and trying to be at the frontline of the "future of mobility"
(Mainwaring, 2018). Toyota focuses on developing in international markets, participating in
new alliances, and delivering purposeful cars (Mainwaring, 2018). The emphasis on supply
chain operations would be another presumed strength of Toyota. Toyota is stated to be dealing
with a mix of technologies and innovative strategies to processes to help its international
supply operations rebound against environmental hazards with effective methods (Marchese,
2014). In terms of the performance Toyota is also considered a reliable organisation. The
enterprise uses its developed car-sharing markets, utilises newly formed alliances to drive
development and effects, and shows shift with its services like the Hybrid Convergence
Driving Tech cars (Mainwaring, 2018).
Weaknesses:
 Hierarchical organizational structure
 Secrecy in organizational culture
 Product recalls in recent years
Toyota has experienced difficulties throughout its organisational system, referring to
"Bensinger and Vartabedian" (2010). Past workers conclude that the difficulties began with
critical decision-making from Japanese administrators, who ended up triggering vehicle safety
conflicts and attracting adverse influences behind some issues (Bensinger and Vartabedian,

2010). The growth techniques with U.S. procedures concentrating on growing production
plants with also reducing expenses and enhancing the sophistication of car microchip
technologies is behind further issues with the organisational structure (Bensinger and
Vartabedian, 2010). Such systemic problems have led to weak organisational culture and,
finally, safety alerts that placed a burden on the company (Bensinger and Vartabedian, 2010).
A recent safety warning by Toyota impacted 2.3 million cars with accelerator problems, and
this has been seen as a problem of reliance on manufacturers of parts not manufactured in
their plants.
Opportunities:
 Growing markets in developing countries
 Rising demand for fuel-efficient automobiles
 Growing interest in advanced electronics in vehicles
Whenever it refers to developing economies, progress has exceeded growth forecasts in
China, India and Brazil. China has observed online marketing technology, India has focused
on hybrid cars or two-wheeled vehicles, and Brazil has been a leader in lucrative cost-value
compromises for higher profit margins ("Emerging Markets," n.d.).
Emerging economies give Toyota the ability to improve profits further by entering these
countries. In addition, the emerging patterns of increased competition and interest for better
fuel efficiency and associated technology provide the potential for Toyota to concentrate on
all these ways with its technology. The weak Japanese Yen against the U.S. in addition, the
dollars ensures that goods and parts sold from Japan to the United States are more affordable.
Threats:
 Growing market presence of low-cost competitors
 Rapid innovation of competitors
 Tariffs and trade
As progress is fast, and variations of quality and profitability are dispensed into the sector, the
auto sector has flourished competitiveness. The technology has prompted consumer rivalry to
concentrate heavily on spending plan electric vehicles focusing on traditional green vehicles
("Escalating Competition as Electric Vehicles Seek to Become Common," 2017). The
technology has led to a heavy focus on budget-friendly electric cars focusing on global green
vehicles. The dimension of tariff and trade problems surrounds major challenges impacting

the automotive market as imported materials increase, and high duties tend to be controlled
for the importation and exporting of materials (LaReau, 2018). According to LaReau (2018),
and during second half of 2018, Ford turned a profit of 1 billion dollars that is posted to be
down by fifty percent from a year ago due to decreased revenue in China, and the
fundamental impact of duties from the Trump regime.
Strategic Recommendations
The "SWOT" study by Toyota describes key challenges, such as the impact of rivalry and the
shortcomings of the group of people based on its organization culture. Toyota needs to
optimise its competitive edge on the basis of its disruptive resources in order to counter risks
based on cooperation. To maximise its versatility in judgement and solving problems, the
organisation can also further change its culture and structure.
 Toyota needs to sustain the same degree of creativity, competitiveness and
interaction as they did at the beginning.
As they emerge as a highly enhanced company in the automobile industry it is their core
responsibility to sustain and grow further in the international market of automobile industry.
Toyota and Honda have been rivals since decades but they both sustain well in the market.
There are also other Japanese companies of car such as Mazda, Nissan and Suzuki but they
can’t compete with durability and reliability of Toyota Company as the customers are well
satisfied with Toyota vehicles in even after using it for 5 to 10 years. Toyota should keep the
same work technique with technological progress in their car models.
 Start giving tasks to robots to avoid labor risks.
Safety of the workers in the manufacturing plants of the company is one of the main concerns
of any automobile company so by bringing robots and giving tasks to the robotics will
increase workforce and there would be no fear of health emergency if maximum tasks are
carried out by robots in the company.
 Maintaining the brand image.
As discussed earlier Toyota needs to fix minor issues which was developed by the company
as the customers complained about same design of the cars over the years. So the company

took note and started to make slight changes in models of their cars every year and it
increased the demand of the new models of Corolla, Camry and Avalon.
 Produce more eco-friendly cars.
As Toyota is well recognized for its good fuel average in cars it should focus more on
producing economy fuel mode cars which allows customer very low consumption on average
speed and whenever the diver has a soft leg push on the accelerator the car moves on eco
when the driver drives fast it automatically consumes more petrol than on eco mode so the
company should bring eco on all the sedans, SUV’s and crossovers so the customer don’t
have to worry much about the fuel consumption. Which will increase the sales of the cars.
 Produce more hybrid cars.
Hybrid cars are like electric cars but they are not completely electronic. These cars are
capable of driving on batteries on a specific speed for example a hybrid car can be driven on
battery at the speed of 60 kilometres per hour or 80 kilometres per hour if the accelerator is
pushed softly if the driver is driving fast and pushing the accelerator hard then it will drive on
engine with the normal fuel consumption like other non-hybrid cars. So the company should
produce more cars like Prius and Camry Hybrid in order to increase the sales.
 Keep track of the customer’s feedback in order to discourage any dissatisfaction
of any customer.
The valuable feedback and review should be taken into consideration in order to avoid any
dissatisfaction by the valuable customers of Toyota, keep on improving and changing things
in new models of the car in order to get maximum satisfaction by the customers.
 Start more plants of Toyota in Asian countries it will reduce the labor cost in
production and also the cost of raw materials will be reduced.
Toyota is a Japanese company and it has a higher demand in Asian countries, so the enterprise
should open more plants in Asian countries like Thailand, Malaysia, Indonesia and India
because it will reduce the labour costs, expenses and it will deduct the raw materials cost
which is quite expensive in the European countries.
 Build a friendly environment within the organization.
In Toyota there are employees of all religions, cultures and races and that is why they should
be treated equally in order to motivate them to work more effectively and high level managers

should feel confident that they are working in the right company where workers are respected
equally with no discrimination or mishandle by anyone. If the workers are happy and satisfied
they will work efficiently no complaints will be faced by the company in the present and if
this environment remained consistent the employees will work for a longer period of time.
And on their retirement they should rewarded with the appreciation certificate by the
company for their dedication and hard work.
References

Marking Scheme