TOWS Analysis of Toyota

Strengths

1- A strong brand name, Toyota is considered to be the world’s largest automobile producer. Toyota has been operating 51 manufacturing companies in 26 countries including 12 in Japan.

2- Toyota possess a powerful market position by promoting innovative production techniques that emphasize on eliminating wastes and overall improvement in the manufacturing side has made Toyota , the true technological market leader.

3- Toyota has been known all over the world for its product’s quality, durability and reliability.

4- Innovation is the key success factor through massive production in hybrid vehicles all over the world that has been increasing Toyota’s sales.

5- Toyota is also known at its best to motivate its 300,000 human resources and enrich the corporate culture to achieve favorable outstanding results.

6- Toyota’s investment in R &D Department is the reason for the recent improvement in the design and research centers in the whole world.

7- Availability of production facilities is high globally.

Weaknesses

1- Due to unstable political situation in some countries, Toyota has to face through financial crisis and a decline in sales as well.

2- In some countries, it’s hard for Toyota to maintain the manufacturing facilities as they are expensive and turns to be a serious problem when there is a need to reduce or discontinue production during economic downturn.

3- Ineffective vehicles can make Toyota lose its brand image and a potential loss in incomes in the long term.

4-  Toyota is often being criticized as the foreign importer.

Opportunities

1- Countries like Brazil, India, China that is not been explored by Toyota can be a profitable advantage for the organization to make large investments.

2- Due to rise in fuel prices will benefit Toyota to produce cars that are more fuel efficient and is less harmful to the environment.

3- Changing consumer’s preference through adapting related/unrelated diversification strategy.

4- The demand to buy luxurious cars has more increased recently in countries like India, Russia and USA.

Threats

1- As Toyota basically originates in Japan so with a continuous appreciation of Yen can create difficulties while exporting cars in other countries.

2- The economic slowdown in various economies of the world can have a negative impact on the demand and sales of automotive division.[sky]

3- Severe competition against rivals.

4- Market saturation in Europe and USA leads to reduction in car demand and sales which affects Toyota also due to rise in fuel prices.

5- Those car manufacturers who sell  cars in cheaper rate has forced Toyota to put it prices down which can be a risk to its organization’s financial position.