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SWOT Analysis of Toyota

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Introduction

Daniel Fernandez Allende MG 520 International Business Management Toyota Motor ________________ Index 1. Mission statement 2. Business overview 3. SWOT Analysis Streghts Weaknesses Opportunities Threats 4. Strategic Management Political Economic Social Technological Environmental Legal 5. Competitive Advantage 6. Recommendation 7. Bibliography ________________ 1. Mission statement Toyota is an automobile worldwide firm that leads the way to the future of mobility, enriching lives from people of all countries, with the safest and most responsible ways of moving them. Through our commitment to quality, constant innovation, deliver the latest technology and respect for the planet, we aim to exceed expectations and be rewarded with a smile. We will meet our challenging goals by engaging the talent and passion of people, who believe there is always a better way. Lead the way ? Toyota will be a frontrunner. We will seize opportunities and invest in the future. Future of mobility ? We?ll develop new forms of transportation and pursue new ways to connect technology to people. Enriching lives around the world ? We will create jobs, develop people and contribute to society. Safest and most responsible ways od moving people ? Safety is our number one priority (for employees and customers). Nothing is more important. Commitment to quality - We constantly raise our standards for dependability, reliability and customer satisfaction. Constant innovation ? Our goal is ?always better cars?. We constantly reinvent ourselves introducing new technologies and stay ahead of our competition. ...read more.

Middle

Movements in exchange rates could see the already narrow margins in the car market being reduced. The company needs to keep producing cars in order to retain its operational efficiency. Car plants represent a huge investment in expensive fixed costs, as well as the high costs of training and retaining labor. So if the car market experiences a down turn, the company could see over capacity. If on the other hand the car market experiences an upturn, then the company may miss out on potential sales due to under capacity i.e. it takes time to accommodate. This is a typical problem with high volume car manufacturing. Opportunities Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies developed by the organization. Rocketing oil prices have seen sales of the new hybrid vehicles increase. Toyota has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid. Such moves can only firm up Toyota's interest and investment in hybrid R&D. Toyota is to target the 'urban youth' market. The company has launched its new Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. The vehicle itself is a unique convertible, with models extending at their rear! ...read more.

Conclusion

The TPS system also required quality control to be built into the production line. Employees could determine quality assurance by stopping production as necessary to eliminate defects. The TPS system revolutionized the quality and productivity of the company and helped to create an organization that focused on customers' future needs, rather than responding to current desires. ________________ 6. Recommendation One recommendation for Toyota is to be more ruthless in utilization of its early leadership in the commercialization of hybrid systems and electric-vehicle technology. Although every other giant carmaker will launch new hybrids and purely battery-powered vehicles, or is preparing to, Toyota is convinced that it is still ahead of the pack. Within a few years there will be a hybrid version of every car Toyota makes and there are plans to extend the Prius brand to cover a range of innovative low- and zero-emission vehicles. Toyota has to stop making so many dull cars with all the appeal of household appliances. (The Economist, Dec 10th 2009). The company has to focus more on safety standards, in order to avoid bad publicity. Also, it can acquire few small companies, to reinforce its market position and expand the company. Another strategic option for Toyota is to separate its hybrid models into a separate brand that will target customers that are more environmentally friendly. Given that currently the world is still recovering from the financial crisis, a new brand, offering moderately cheep, environmentally friendly and efficient car would be perceived very well. 7. ...read more.

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