Toyota Swot Analysis

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Emerging markets is one the rising force and are the major players in economic growth. Companies everywhere around the world and throughout industrial sectors are drawn by the business opportunities these markets represent—especially the billions of potential new consumers in India and China. It’s necessary to identify, that these emerging markets elementally varies , even from one another. Groups such as BRIC (Brazil, Russia, India, and China) hold little significance when it comes to planning to win in these markets. A detailed understanding of the variations is very important , and rethinking product development and innovative strategies is key to meeting the needs of new consumers. A willingness to not just change but in many cases radically…show more content…
SWOT Analysis


Strong market position and brand recognition: Toyota has a strong market position in various geographies around the world. The company 's market share for Toyota and Lexus brands, (excluding mini vehicles) in Japan was around 45.5% in FY2012. The company has 7% share in the Chinese market.

Extensive production and distribution network: Toyota has an extensive production and distribution network. Toyota and its associates produce automobiles and complementary parts and components over more than 50 manufacturing companies in 27 countries and regions besides Japan.


Product recalls could affect brand image: Toyota has conducted a number of product recalls in the recent past, which could affect the brand image and overall sales of the company. For instance, in 2011, Toyota recalled 111,000 models of Toyota and Lexus brands’ motor vehicles due to the damage to elements of the substrate and potential shutdown of the hybrid system.

Declining sales in key geographic segments: Toyota witnessed a decline in its sales in key geographic segments. In FY2012, the company witnessed declining sales across North America, Asia, Europe and other geographic reasons, which together accounted for 60.8% of the total revenues of
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If this trend continues, Toyota’s sales in emerging markets will shortly outdo its sales in developed markets. Toyota successfully observed and responded to the needs of the rising of middle class in the emerging markets. Through localization initiatives, Toyota designs and produces cars in these markets to meet these consumers’ unique needs.

It expands on the markets of Russia and China; the main weapons are low-cost cars.
Toyota’s plan is to build three new factories that produce over 450,000 units annually in order to meet market demand in India and China. Japan plans envisage the expansion on the emerging markets like Brazil, Russia, India and China. Toyota is counting on the elasticity of these markets, which, in their opinion, is the key to success for increasing their sales significantly. The main objective is the Chinese market. China currently registered the highest rate of economic growth and the automotive segment is a very large expansion, which makes Toyota to hurry to take over the control of this market.

Toyota 's Market

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