SWOT Analysis Of Toyota

SWOT Analysis -Toyota

Toyota is a well-rounded company that, with its success in the automobile industry and large presence in foreign markets, has become a staple in many parts of the world. Along with Toyota’s successes, there is more to analyzing their companies overall functionality. By outlining this business’s strengths, weaknesses, opportunities, and threats through the creation of a SWOT analysis, Toyota’s stance in current and future economies becomes far more clear. Toyota conducted a SWOT analysis to audit its company and its environment in order to make marketing decisions to maintain the value of its products.

The first part of any strong SWOT analysis is the outline of the Internal Factors :strengths and weaknesses. Primarily,

The second part of the internal portion of a SWOT analysis is to outline the weak points in the system. Along with strengths, Toyota must have some weaknesses in the work the business functions. Toyota, while prosperous in the automobile industry, have a weak presence in emerging markets. “Robotics engineers at Toyota currently number only 150 out of a worldwide staff of 300,000…”(Doc A). In addition to this lack of workforce in new fields, many sources claim that products stay in development for years, never making it to the public eye. The author Yuri Kageyama states, “The robot...is not yet ready for commercial sale.”(Doc A) This shows how Toyota needs to start putting an emphasis on creating products that can be of use to the populus faster. Toyota spends decades in research and development phase. Kageyama continues to say, “...Toyota’s robotics interests go back decades, including their use in manufacturing at its auto plants.” This obviously shows that they are spending way to much time in research allowing competitors to exceed Toyota’s efforts for advancement and put their place in future markets in jeopardy. Another factor that can jeopardize their future market standing is when Toyota’s suppliers send in faulty products bringing about a lack in trust. “...the problem of defective airbags made by the Japanese supplier Takata has festere in the auto industry as recalls have mounted…”(Doc B) creating a massive recall wave costing Toyota

However, it would be wrong to assume that there are no opposing threats, the last section of a SWOT analysis. Toyota must make sure they stay above all of the potential business killing burdens this world can send barreling towards them. For example, Japan’s national currency, the Yen(¥), is experiencing a drop in value. “For every one-yen increase in the value of the dollar, Toyota’s annual operating profit rises by ¥40 billion”( Doc E). Written like this, the statement sounds beneficial to Toyota’s success. However, if you flip the one-yen increase to one-yen decrease, Toyota’s going to lose billions of yen in their annual operating profit. this could have disastrous consequences like the inability to stay competitive in the auto industry. This market is peppered with rivals like Honda and Nissan that, like Toyota, even share the Yen as their main currency. Information from document D tells us that Toyota is not “numero uno” when it comes to sales and market share. Big companies like Ford, Chevrolet, and GM topped Toyota with respectable margins. Companies are proving more successful in certain portions of the auto industry such as profit in sales and market shares. Even though it is possible to overcome these problems by stepping up sales and really getting out there, it is becoming harder and harder to maintain a level income in the auto industry as car prices are