SWOT Analysis Strengths: 1. Brand recognition and strong position in the market – the market position of Toyota is strong and in different geographies across continents. In 2012, the market share is 45.5% for Toyota and Lexus brands in Japan. In Asia on the other hand has market share of 13.4% and 12.2% in North America, 4.3% in Europe while 7% of the market in China as well as considerable market shares in Central and South America, Africa and Oceania (Store.marketline.com, 2015). Toyota has been allowed by such strong market position to gain competitive advantage and also expansion in the international markets.
The Business Level of Toyota Toyota Motor Corporation is a Japanese company that is involved in the design, assembly, manufacture and sale of a wide range of motor vehicles such as minivans, passenger cars, commercial vehicles, and assorted accessories and parts (Nkomo, 3). Examples of brands under the Toyota portfolio include, but are not limited to; Lexus, Toyota, Hino and Daihatsu. Toyota was founded in 1937 by Kiichiro Toyoda and has grown to not only be the world’s leading auto manufacturer in the automotive industry, but also the world’s eighth largest company with operations in virtually every corner of the world (Nkomo, 3). This growth has been fueled by two key aspects of Toyota’s business; its ability to lower costs and concise
For some time, the company was the only practitioner of these practices and had the lowest manufacturing and production costs worldwide. As a result, the firm achieves maximum business efficiency. Although many manufacturers were able to replicate Toyota’s lean manufacturing system, the company is still one of the most profitable manufacturers in the world. The company maximizes sales volume via reaching and attracting more customers by offering product every market segment in order to enjoy cost leadership component which ensures profits despite relatively low selling
Toyota is an in number or even prevailing player in every fragment from economy to extravagance and autos to pickup trucks. In 2008, Toyota turned into the greatest auto maker on the planet and it is quickly constructing new creation limit around the world. In 2007, Toyota delivered 9 366 000 autos
Furthermore, to discuss about the degree to which these components may have an effect upon the work of the managers in this organization. Toyota Motor Corporation is a car organization working Worldwide (Multinational) with base camp in Japan, with US as the biggest business sector for
But, since 2007, consumers lodged complaints with the company regarding potential vehicle defects like software glitches, brake system flaws, and acceleration pedal concerns (Piotrowsi & Guyette, 2010). Toyota was slow to acknowledge consumer concerns, but eventually the problem could no longer be ignored. The crisis peaked in 2010 when Toyota instituted a recall of more than six million vehicles due to consumer fears concerning sticking accelerator pedals (Rechtin, 2014). At this point, Toyota was forced to respond to the problem. The defined problem was safety concerns stemming from potentially faulty auto
also the world's largest truck maker Daimler heavy duty trucks of Bharat Benz brand is biggest challenge to Tata Motors. In commercial segment a fuel efficient vehicle is being developed Tata Motors to meet the competition head-on, this kind of an approach is to maintain the shareholders trusts. Market concentration Tata Motors strategy would be to focus 14-15 countries having same market structure as of India. In these targeted countries the company is having excellent manufacturing facilities, market teams and sales teams. Incorporating above strategy the company evaluates best opportunities and skilled labor to cut down cost of production, hence maximizing profits.
Tata Motors is lacking in terms of management capability since it has undergone constant losses since the recession in 2008. It has released a lesser number of new and innovative products than its competitors. Its global footprint is much smaller than Toyota or Honda or Maruti. The distribution strategies that it adopts may be good, but it also spends least on Marketing amongst the OEMs. From all these factors, it can be stated that Tata Motors has not been successful in creating any competitive advantage for itself amongst the OEMs.
Positioning Toyota’s uses both diversity and low cost strategies to gain a economical advantage over their competitors in the automotive industry. The market opportunity that Toyota uses is a broad one that covers almost every type of customer’s automotive needs and desires. Toyota is able to target such a large market that suits everyone. Toyota has four wheel drive trucks and SUVs for the outdoor activities and those who live in harsh weather areas, hybrid models like the Prius or BEV/FCV for the eco-friendly customers that are interested in saving the environment, beside standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
3. How is Toyota currently performing? Is it the number one global carmaker again? 6.In 2013, Toyota Motor Corporation manufactured 10 million cars, placing them as the top car maker in the world. Their output for the previous year was an achievement and no other car manufacturer has produced this many cars in one year.