The Toyota is a Japanese manufacturer of vehicles and has a solid presence in many markets across the world. Here is SWOT analysis on Toyota
Strengths
One of the strengths of Toyota is its innovative culture. There are no two thoughts about the fact that Toyota is an innovative automobile manufacturing company and its culture is strongly based on continuous innovation. Toyota enjoys the distinction of introducing the Kanban, Kaizen as well as Total quality Management Systems on a wider basis in their corporation. Toyota is also the first organizations to produce and market hybrid vehicles on a mass-market level.
Toyota enjoys a brand reputation that is valued at nearly 30 billion dollars. It is one of the most highly valued car brands across the world. As an automaker, Toyota is renowned for is eco-friendly, durable and safe automobiles that are currently being driven in 170 countries. For a long time, this Japanese automobile manufacturer has been a leader in sales and production. Owing to the total management practices as well as the lean manufacturing processes introduced, Toyota has been able to manufacture cars with the lowest production costs.
Weaknesses
One of the biggest weaknesses for Toyota is recalls on a large-scale. In the past few years, Toyota has suffered a lot due to large-scale recalls of some of its vehicles. Around 9 million cars were recalled in 2009 and 2010 while in the year 2012, nearly 7.43 million vehicles had to be recalled. Such recalls not just dent the company’s finances but also hurts the brand image and reputation in the long run.
One other weakness of Toyota is that it does not have a strong presence in developing markets. Its key markets are Japan, Europe and US. Markets like India and China only contribute a small amount to the total sales of this Japanese manufacturer.
Opportunities
Toyota has long portrayed its affinity for eco-friendly, ‘green’ cars and this is undoubtedly one of its biggest opportunities. Car buyers today are aware of the harsh effects caused to the environment and health due to automobiles. Vehicles release Co2 emissions in huge quantities, contributing to the greenhouse effect and thus degrading the air quality. This has opened a lot of avenues for electric and hybrid cars whose CO2 emissions are negligible.
Additionally, Toyota also has a great opportunity to expand its production of electric and hybrid cars considering the fact that fuel prices have skyrocketed in the past few years. Indeed, consumers are slowly shifting towards eco-friendly cards.
Threats
While on one hand, rising fuel prices open up new opportunities for Toyota, decreasing fuel prices is likely to prove one of the biggest threats for Toyota. In the coming future, fuel prices are likely to drop as shale gas shall be extracted for powering vehicles. Thus, electric and hybrid cars will not remain as attractive to the buyers, particularly those who would think of investing in the Toyota Prius, a hybrid car developed by the Japanese automaker. Rising prices of raw materials are also one of the looming threats for the car maker.
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I am into the auto blogs field for quite a long time. Living my passion of reviewing cars.
Tagged: Toyota Cars India, Toyota India
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