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TOYOTA MOTOR CORPORATION SWOT ANALYSIS

STRENGTHS

· Stable financial performance

· Exceptional Brand Image( globally strong brand awareness)

· Active research and development activities- this means that their product is always trending as they produce what works best and fits best to customers’ needs

· The Toyota Production System- use of lean production minimizes losses incurred or rather experienced during production.

· Quality products which are superior in nature

· Variety product offering- offer various brands which target different demographic markets which mean more profits for the company

· Innovative culture

WEAKNESSES

• Product recalls- tends to undermine the brand image

• Higher Lead time which means production will take more time

• Hierarchal and secrecy organizational structures which affect responsiveness in emerging problems.

• Oversupply of cars in the world market which means that the company needs a continuous production of cars so as to retain their operational efficiency

• Trade Union Issues when it comes t their employees- does not motivate the workforce hence the level of effectiveness among employees will be low

OPPORTUNITIES

• Change in customer preferences- since the market tends to look for affordable fuel-efficient vehicles with low-cost maintenance this will be an open opportunity hence more profits will be made

• Growth through mergers and acquisitions this will mean production of hybrid vehicles which will cause the firm improve their features as well hence have a competitive advantage over others which suggests that they will have a larger market share hence growth in the automotive industry.

• Demand for compact vehicles which are fuel efficient.

• Wide International market potential which such as opportunities in the Asian Market

THREATS

• Strict regulations when it comes to emission standards concerning environmental safety and friendly regulations set by different bodies.

• Improved and dynamic changing technology in the market- this will mean that the company has to invest more in technology to keep up with the trend such as the fuel-cell.

• Fluctuating fuel prices- which deprives them the uniqueness of cost efficiency in the market

• Increased prices in raw materials which will affect the budgeting decisions in the company.

• Appreciating Yen Exchange Rate which makes the value of their products expensive

Importance Of The SWOT Analysis Tool to The Marketing and Management Teams.

To the marketing team, SWOT analysis is of significance since when it comes to the Strengths, it helps in the market segmentation, targeting and positioning in the various countries in which the company is a major supplier or rather in identifying marketing needs (Bohm, 2008). The example in Toyota, the existence of the right mix of products for its various markets being strength, helps marketers in segmentation, positioning, and targeting. In the analysis of its weaknesses, the ones identified contribute to knowing the responsive attitudes to customer requirements, brings to light the product range regarding whether it is outdated or limited. Also, the weaknesses help to identify room for improvement as per the client’s preferences and response. SWOT analysis helps also in the identification of the new emerging markets and identification of margins and market niche in these markets. The analysis of the opportunities to marketers plays a significant role in the branding of its various products which targets different demographics in its target market. Furthermore, it enables a marketer to discover new opportunities that are in line with the firm's strength which mean that there will be increased revenue streams for the corporation. As for the threats, marketers tend to identify factors that will inhibit the business from being successful this will help the company to anticipate challenges in advance. Hence, marketers will avoid making mistakes when it comes to the positioning of the products and also when entering a new market.

Secondly, for the management team the SWOT analysis is of importance since it helps in the development of business goals in the Toyota Corporation and the strategies for achieving the set specified aims and objectives. It also helps in the decision making of the Corporation when it comes to the internal activities of the firm which will determine the performance of the corporation in the market. It helps in capitalization or rather first consideration on opportunities which will provide a way of penetrating in new markets such as Asia in the case of the Toyota Corporation. It helps in the better understanding of the business regarding its operations and capabilities. Furthermore, when it comes to allocation resources as well; in that proper distribution of resources will determine the lead time for every production hence play a role in effectiveness when it comes to responding to customers’ needs.

Recommendations for Toyota Management Team

Some of the recommendations suitable for the particular Corporation are that they should improve their innovative techniques so as to gain a competitive advantage over other competitors. They should adapt to a flexible decision-making and problem-solving structure which will increase efficiency and effectiveness in its operations. Toyota Company should invest more in advanced technology which will help them gain the competitive advantage over the rest. In addition the management should develop policies which will not only favor their operations but also their employees so that it can act as a motivation to employees which will improve level of efficiency in the firm’s workforce hence high productivity levels.

References

Bohm, A. (2008). The SWOT Analysis.

Shang Gao, S. P. (n.d.). Lean Construction Management: The Toyota Way.

Snelling, J. (n.d.). The Influence of the SWOT Analysis in Organizational Development Strategic Planning.