SWOT Analysis of Toyota Motor Corporation

Posted by mbalectures | Posted in SWOT Analysis | 31,415 views | Posted on 20-01-2011 | Print This Post

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Toyota Motor Corporation (TMC) is a Japan-based multinational automaker. Kiichiro Toyoda founded TMC  in 1937 and now the company is headquartered in Toyota, Aichi, Japan. TMC is the world’s largest automobile manufacturer by sales and production and it employees more than 320,808 people through out the world. The company is mainly engaged in the automobile business and financial business. The popular brands of the company are Toyota and Lexus. SWOT Analysis of the company is given below:

 

Strengths:

 

  1. Toyota Motor Corporation (TMC) is the world’s largest vehicle manufacturer by production and sales.
  2. Toyota Motor Corporation is the part of “Toyota Group”; one of the biggest conglomerates in the globe.
  3. Toyota is best known for environmentally safe, Quality, durability, reliability, and value for money and convenient.
  4. In 1997, Toyota began manufacturing of the globe’s best-selling hybrid car, the Prius.
  5. The principles and beliefs based on Continuous Improvement and Respect for People.
  6. Toyota has very strong presence in Europe due to the accomplishment of Toyota Team Europe.
  7. Strong distribution and marketing efforts focused on the meeting diverse needs, high quality sales and services, and close involvement with customers.
  8. It presently maintains more than 16 percent of the US market share and is only behind to GM in terms of volume.
  9. For the year 2005, Toyota ranked 8 on Forbes 2000 directory of the world’s leading companies. 
  10. Toyota’s sales had risen 9.2 percent mostly on demand for Camry sedans and Corolla
  11. It has initiated new technologies including first bulk-produced hybrid gasoline-electric automobile which had two million sales worldwide in 2010.
  12. It started the "Innovative International Multi-purpose vehicle" plan (IMV) to optimize global manufacturing and supply system.
  13. For the first quarter of 2008, Toyota was number one in worldwide vehicles sales.

 

Weaknesses:

 

  1. From last quarter of the 2009 through the 1st quarter of 2010, it recalled more than eight (8) million trucks and cars globally in numerous recall campaigns, and temporarily stopped production and sales.
  2. Toyota Motor Corporation criticized as a foreign importer by Japanese car producers. 
  3. Toyota was badly hit by the 2008 financial crisis and declared its first annual loss in 70 years history.
  4. In May, 2009, Toyota Motor Corporation reported a record yearly net loss of US$4.2 billion.
  5. In 2005, Toyota faced criticism because of large-scale re-call and quality issues.
  6. Toyota offers most of its brands in the Japan and United States, where as competitors’ get global efficiency.

Opportunities:

 

  1. Joint ventures with French motoring companies Peugeot and Citroen has provided various opportunities for the company to produce cars in France.   
  2. In 2009; quoting declining production numbers, the State Bank of India (SBI) decreased interest rates on automotive loans.
  3. North American consumers shifted to more fuel-efficient and higher-quality product of European and Japanese automakers.
  4. Engineering is a diverse industry with a number of segments. A firm from this sector can diversify into power equipment, a niche competitor (like providing environment friendly solutions). It can be non-electrical and electrical machinery and still tools producer too.
  5. Indian GDP is about 6%; which indicate a better economy and infrastructure in Indian rural sides which can sustain growth and improvement of poverty in economy.
  6. Produce fuel-efficient, higher-quality and smaller automobiles that can attract the consumers.
  7. Government of China reduced automotive taxes in order to support declining sales.

 

Threats:

 

  1. The financial Meltdown resulted in liquidity deficit in the U.S banking system which ultimately decreased consumer wealth.
  2. Environmental regulations and associated apprehension concerning carbon emissions have sharp sensitivity to environmental protection globally and gas mileage standards.
  3. Industry is facing adverse impact of fluctuations in foreign currency conversion rates.
  4. Increased competition, market saturation, forceful marketing campaigns and rising competitive pressures.
  5. Increasing maintenance costs of vehicles, rising fuel price and changing customer preference are challenging threats.
  6. Major producers, including the Big Three offered significant discounts across their lineups.

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