Toyota's SWOT Analysis Framework in Marketing Context

The SWOT Analysis of Toyota examines both internal factors like leadership in manufacturing and challenges such as profitability issues due to production locations in the US and Japan. Externally, opportunities arise from increasing demand for hybrid cars and technological advancements, while threats include economic downturns and intense competition. The analysis underscores strategic marketing efforts needed to leverage strengths and mitigate weaknesses for Toyota’s sustained global success.

Running head: Introduction to marketing
Introduction to marketing

Introduction to marketing
Contents
Toyota SWOT Analysis Framework..............................................................................................................2
1.) Internal Factors............................................................................................................................2
Strengths..............................................................................................................................................2
Weaknesses.........................................................................................................................................2
2.) External.......................................................................................................................................3
Opportunities.......................................................................................................................................3
Threats.................................................................................................................................................3
References...................................................................................................................................................4
Toyota SWOT Analysis Framework

Introduction to marketing
1.) Internal Factors
Strengths
Toyota is considered as a leader in manufacturing and production industry. The company
enhances its profitability by taking into consideration effective manufacturing approaches like
total quality management. It is one of the first movers in the field of car research and
development. It has a strong international position in 170 countries globally. The industry has a
good brand image in the market that is based on quality and also it carries a customized range of
products. The company has an excellent penetration in the markets like US and china and it is
the second largest car manufacturer globally. As the company carries a good brand image in the
market, it is easy to achieve the goals and objectives. The company has a good workforce that is
a great advantage to expand its operations in an effective manner (Elnaga and Imran, 2014).
Weaknesses
Every organization carries some weakness. By taking into consideration the Toyota industry it is
seen that the production of the cars are done in US and Japan. The Japanese car manufacturing
has a very less profitability that gives direct reflection of the financial segment of the
organization. The company gives post-retirement benefits to its employees by which the extra
expense arises on the company. By manufacturing the product in US and Japan it is analyzed that
company suffers from an economic and political condition of the country that gives direct impact
on the operations of the organization (Debnath, 2015).So, company is trying to enter into the new
market by considering all these factors. Due to enhancement in the fluctuation rate related with
exchange the sales are affected of the company. The competitors avail the advantage of the
locations where the company is not present to conduct its manufacturing operations. In many
cases the dealer moves away from the principles and actions that give negative outcome and
enhances the complaints from the customers (Moeuf, Tamayo, Lamouri, Pellerin and Lelievre,
2016).
2.) External
Opportunities
Opportunities are many in the market, but the right step is needed by the company to attain the
opportunities that are prevailing in the market. Due to an increase in the gas prices of the hybrid

Introduction to marketing
cars the product of the company is now preferred more by the consumers. The latest technology
that is adopted by the company also helps to attain new techniques related with efficiency of fuel
system. The company gives main focus on the youth market by launching special and attractive
models like Aygo which is one of the most popular convertible cars liked by the youth. The
company also developed new cars which are beneficial for the customer in term of fuel
efficiency and also that gives less impact on the environment. The expansion is taken into
consideration by the company in which the new segments are introduced in the market by the
company. In the merging market the company attained global expansion that has given positive
impact on the working pattern. The taste of the client keep on changing, so the company should
give main focus on attracting the customers towards the organization, so that the profitability can
be enhanced in a proper manner (Sisson and Elshennawy, 2015).
Threats
Due to the decrease in the economic condition of the world and the competition in the market has
enhanced the threats for the company. The company faces high level of competition in the
market. To compete in the market the company should adopt effective marketing strategies so
that the goals and objectives can be attained in an effective manner. The company faced decrease
in the economies related with US and Europe. The economic factors are considered as a main
threat to the organization. Due to exchange fluctuation rate it is seen that the raw material and
profit cost is affected. The company faces a threat from the companies like Honda (Jayamaha,
Wagner, Grigg, Campbell-Allen and Harvie, 2014).To compete in the market the company has
taken into consideration the cost of steel and also the raw material that has impacted the cutting
cost of production and manufacturing without affecting the quality of the products. The main
threat is also related with change in the demographics pattern like large families are reducing so
the demands for the large family cars are also reducing. The price of the oil or the cost incurred
in maintaining the cars is also increased. Also there are many families who adopted the decision
of not purchasing a car or decided to use the car on special occasion. So, to minimize the threats
the proper strategies should be taken into consideration by the company, so that the goals and
objectives can be attained (Jeong and Ko, 2016).

Introduction to marketing
References
Elnaga, A.A. and Imran, A., 2014. The impact of employee empowerment on job satisfaction:
theoretical study. American journal of research communication, 2(1), pp.13-26.
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.
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.
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.
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.
Jayamaha, N.P., Wagner, J.P., Grigg, N.P., Campbell-Allen, N.M. and Harvie, W., 2014. Testing
a theoretical model underlying the ‘Toyota Way’–an empirical study involving a large global
sample of Toyota facilities. International Journal of Production Research, 52(14), pp.4332-
4350.

Introduction to marketing