The SWOT framework pinpoints the most significant opportunities, threats, and organizational weaknesses that Toyota must address using its strengths. As a global leader in the automotive industry, Toyota effectively addresses such factors. This element of the SWOT analysis model identifies the internal strategic factors that serve as capabilities of the firm.
SWOT Analysis Strategic management is a technique used by managers to give a firm a long-term direction and involves a systematic analysis of decisions, actions that create a competitive advantage.
It involves the analysis of strategic goals, vision, and mission and the internal and external environmental factors in a firm. SWOT is an acronym standing for strengths, weaknesses, opportunities, and threats.
This analysis helps to identify the strengths and capabilities to minimize weaknesses, along with identifying opportunities to overcome threats. The Toyota Corporation is a leading automobile manufacturing in the world among other companies such as Ford. It has a strong production process that is effective and efficient in saving costs, this creates a competitive advantage.
Cost savings helps to set affordable prices of their products to end users, over the competitors. The firm utilizes resources and eliminates unwanted costs in the production process. This strategy creates a competitive edge for Toyota, by reducing costs and increasing the production capabilities and efficiency Toyota has strong horizontal integration merge verses the competitors who have vertical integration relationships.
Strong relationship with supplier creates a competitive advantage, and it informs of updates or any developing changes Henry, Horizontal merge proves to be cost effective, reduce risks and increase benefits.
Merging helps to pool together resources of the combining companies, creating a favorable business environment. Synergy is one of the benefits of combining companies, and sharing of resources e.
Toyota opts for best suppliers in Japan. It treats it employees with legitimate sense of respect and loyalty. The Japanese value work differently from competitors for instance the Americans this is reflected in their quality products they offer to the market.
Toyota in invests more its employees empowers them to be creative and innovative Hino, A strong sense of respect of hierarchal authority enables fast decision-making and implementing Strategic plan.
A weakness is something or a condition that hinders a firm from achieving it objectives. It is a competitive deficiency Henry, Toyota offers financial services such as insurance, credit cards. These services report low profits to the firm than other segments. Such financial services can render a competitive edge as well as a deficiency in for firms the financial strength.
Toyota use the just in time system which gives Toyota a competitive advantage, but too much dependency of this system can lead to malfunction if the supplier provision does not meet the requirements of the firm.
Failure to meet these requirements affects the products quality in addition, to the manufacturing system. Toyota capitalizes on the strengths to meet its threat and take advantage of the external opportunities.
Toyota has a strong cultural advantage that enhances the organization structure, focuses on teamwork rather than individual efforts. It inspires creativity and innovativeness to employees to improve the quality of its products. Loyalty when dealing with employees and a unfailing sense of respect of the authority.Toyota Motor Corporation: SWOT Analysis and Development of a Marketing Strategy Words Jan 6th, 5 Pages Based on an analysis by the Economist Intelligence Unit, the company has developed to become a constant leader in customer satisfaction ("Toyota Motor Corporation A Success Story" par, 1).
Case Study Analysis of Toyota Motor Corporation Toyota Motor Company’s Recall Debacle: Did Toyota Take a Wrong Turn? 2 | P a g e information will be mainly centralized but at some levels decentralized process will also be used. This will help Toyota to develop strategies in order to meet both organizational as well as.
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The article is based on Toyota SWOT analysis, which can be found in the Library, in CayenneApps SWOT application. Toyota Motor Corporation was founded by Kiichiro Toyoda in as a spinoff from his father’s company, Toyota Industries, in order to manufacture automobiles.
Company Profile Toyota Motor Corporation (TMC) is a multinational company that produces cars, trucks, buses and robots, with headquarters in Toyota City, Japan. Toyota is the largest car manufacturer in Asia and second largest producer.