Strengths And Weaknesses Of Toyota

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• Strengths o Strong focus on R&D
♣ Toyota, who is famous for its innovative culture, the company’s main focus is the introduction of the most innovative vehicles in the market before the competition. Due to their focus on innovation, they are the highest R&D spending automotive company at approximately $9.37 billion in 2016. With 17 research facilities in 8 different countries, and their R&D division focuses on 3 areas:
• Basic Research
• Forward-looking and leading-edge technology development
• Product Development o It is the most valuable automotive brand in the world
Toyota is ranked 5th most valuable brand worth of $53.6 billion, and ranked 1st in overall value of automotive brands, according to Interbrand. Being number one in value makes Toyota the most recognizable brand in the world. o Just-in-time production
♣ Toyota developed a manufacturing system, Toyota Production System (TPS), which was designed to ‘eliminate all waste from manufacturing process’. TPS has allowed the company to increase production efficiency, decrease manufacturing time and simplify its processes. Due the the success of this system, it has resulted in lower costs and better quality of vehicles.
• Weaknesses o Lack of competence in autonomous vehicles
♣ Toyota has been reluctant in investing in autonomous vehicle technology. In recent attempts, they looked to focus their research on eliminating traffic casualties, but do not plan on introducing completely autonomous vehicles in the near
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