Toyota Swot Analysis: SWOT Analysis Of Toyota

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. A portfolio is held by Toyota for strong brands in the automotive industry. The strong market awards a competitive advantage and

Strong focus on research and development – the focus for research and development of Toyota is strong in the enhancement of functionality, safety, quality functionality, safety concerns, quality features and environmental compatibility and environmental compatibility as well as expanding its portfolio of products. There are 14 facilities around the globe where R&D is performed. The strong concentration on this allow Toyota in integrating the latest feature towards the current range of products and bringing out various technologies. It also pave the way for leadership in technology in most of its segments and making it a company driven by innovation (Store.marketline.com, 2015).
3. Extensive networks of production and distribution – The production and distribution network of Toyota is extensive. Automobiles and related parts are affiliated by Toyota through more than 27 countries in 50 manufacturing companies outside of Japan. 3.5 million cars were produced in Japan, almost 3.5 million cars were manufactured outside Japan while internally it is almost 3.9 million. The extensive distribution network of Japan provides a wide reach while its production base diversifies the risks of business that allows for revenue (Store.marketline.com,

Intensifying competition – the competition in the automotive industry is intense. The competition faced by Toyota is very strong in various markets among other automotive manufacturers(Store.marketline.com, 2015) . In the light of the growing globalization and the worldwide automotive industry consolidation, the competition will become stiffer and may be affected by different factors such as features and product quality pricing, the amount of time required for innovation and development, safety, fuel economy. This will result to large inventory and lower vehicle unit which forces the prices to go downward thus in the long run may affect the profit generation of Toyota (Store.marketline.com, 2015).
2. Japanese Yen appreciation – the fluctuations in both the value of the Yen and other foreign currency makes Toyota vulnerable. Adverse effects can be impacted by the strengthening of the Yen versus the US dollar which would affect the operating results of Toyota that would impact the valuation of the company (Store.marketline.com, 2015).
3. Natural disasters – due to natural disasters such as earthquakes which is common in Japan, Toyota could face disruptions. Such as in the previous years, the country had been experiencing devastating quakes, such as the Tohoku 2011 earthquake which has a serious disruption of the economy and a halt at Toyota productions in the tune of 15000 cars. Such devastating phenomenon could impact the production and capacity of