Thursday, 21 November 2013

Toyota SWOT Analysis


SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis can be carried out for a product, place or industry. It involves specifying the objective of the business venture or project and identifying the internal and general factors that are favorable and unfavorable to achieving that objective. Recently, I watched a movie about cars. The car of the main character used is a Toyota car. So let’s take a look at this Japanese company.

For the strengths, Toyota has a strong brand portfolio. Toyota currently sells about 70 different models of cars under its namesake brand. This does not only increase brands awareness but also satisfies nearly every consumer group needs. Toyota’s flagship models are Corolla and Prius. They are the leader in “green” cars development. Toyota understands that environmental friendly cars are the necessity nowadays. Consumers are more selective in terms of CO2 emissions and fuel-efficiency of the cars they buy and Toyota’s early move towards selling hybrid and efficient cars is the strength few competitors can match.

In the weaknesses, they are weak presence in the emerging markets. Toyota’s main markets are Japan, US and Europe, while such emerging economies as China or India make only a small percentage of all Toyota’s sales.

Their opportunities are the increment of fuel prices. Increasing fuel prices open up large markets for Toyota’s hybrid cars as consumers shift towards efficient cars. They will change the customer needs. By introducing new car models, Toyota could satisfy varying consumers’ tastes and needs and access wider customer group such as young people and families.

To their threats, Toyota faces more intense competition from other auto manufacturers. Volkswagen group is strongly growing and GM steps up after its reorganization to become more competitive than ever. Also, rising raw material prices are especially important to automobiles manufacturers. The cost will be higher and affect their profit for Toyota because the raw metals are the main components in car manufacturing.

1 comment:

  1. Good points, nicely produced with use of links and graphics. Well done. 70%

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