SWOT Analysis of Toyota Corporation (Essay Sample)

Toyota SWOT Analysis
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Toyota SWOT Analysis
Toyota is a Japanese-based automobile corporation that was founded in 1937. The organization is the world’s leading car manufacturer with its headquarters based in Aichi Japan. Currently, Toyota has branches many countries in Europe, America, Asia and Africa with a total of 300,000 employees spread all over the world ( Nkomo,2014).Some of the corporations best selling cars include Lexus, Hino, and Daihatsu. Besides the motor business, Toyota also engages in financial business solutions so as to expand its portfolio.
I-Strengths
Toyotas core competency is the ability of the corporation to produce affordable, high-quality vehicles thus guaranteeing its customers the value for their money. Besides, the Lean Manufacturing concept that champions for innovation strategies in the company have seen the corporation produce high-quality automobiles that has made it a leading brand among the car manufacturing industries in the world. This has been critical in enhancing its distinctive competence (Nkomo, 2014).
According to Ovidijus (2013) Toyotas strategy of manufacturing affordable, high-quality cars has made the corporation the leading car sales in the world. Besides, the organization has branches in many leading countries through its extensive distribution network thus making their brands easily available.
Furthermore, the company also prides itself with the production of durable and environmentally friendly vehicles.Nkomo (2014) reiterates that the organization has also integrated new technology into its motor manufacturing a fact that has seen many hybrid cars enter the motor vehicle industry.
Weaknesses
In 2011, Toyota recalled thousands of its vehicles that had been sold in various parts of the world. The recall was as a result of abnormal noises in the engine and leakages. This development has adverse effects on the image of the Toyota brands thus hurting the sale of cars.
III Opportunities
As noted by Ovidijus (2013) Toyota has established joint ventures with many motor manufacturing companies in France thus providing new market opportunities for its products in Europe. The new strategy where the company is producing affordable fuel-efficient automobiles has seen an increase in its sales since the world is shifting to vehicles that keep the environment safe. Also, Toyotas quality and low-cost cars have made many people in the developing country afford Toyota brands thus increasing the sales.
Threats
The ever-changing dynamics of the motor vehicle industries has seen the company get stiff competition from other worlds leading companies like the BMW.The increase in the world oil prices and inflation has seen the cost of acquiring and m...