Toyota Swot Analysis 2013

SWOT analysis of Toyota This is a Toyota aim confederation SWOT analysis for 2013. caller-out background NameToyota Motor Corporation Industries servedAutomotive Geographic areas servedWorldwide HeadquartersJapan Current CEOAkio Toyoda Revenue? 18. 583 trillion (2012) Profit? 283. 55 million (2012) Employees300,747 (2012) Main CompetitorsBayerische Motoren Werke AG, Chrysler Group LLC, Daimler AG, Ford Motor Co. , General Motors Company, Honda Motor Company, Nissan Motor, Tata Motors, Ltd. , Volkswagen AG and many separate motorcarmotive companies. SWOT analysis of Toyota SWOT analysis of ToyotaStrengthsWeaknesses 1. Innovative culture 2. Brand written report determine at $30 billion 3. Industry attractor in manufacturing and production 4. unattackable check off portfolio 5. The leader in green cars development1. orotund recalls 2. Weak bearing in the emerging markets OpportunitiesThreats 1. Positive attitude towards green vehicles 2. Increasing give the axe prices 3. changing customer needs 4. Growth through acquisitions1. Fluctuating fuel prices 2. sensitive emission standards 3. rising raw material prices 4. intensive competition 5. inwrought disasters 6. Appreciating yen exchange rateStrengths 1. Innovative culture. Toyota is one of the most innovative auto companies and has a strong culture that is focused on constant innovation. The partnership was the first to introduce Kaizen, Kanban and Total smell Management systems widely in their organization. The company was the first to mass-produce and sell hybrid vehicles too. 2. Brand reputation valued at $30 billion. Toyotas brand is the most valued automotive brand in the world. The company is known for its environmentally friendly, golosh and durable cars that are sold in more than 170 countries. 3.Industry leader in manufacturing and production. Toyota was the first company to introduce flex manufacturing and total quality management practices in manufacturing process. For some time , the company was the only practitioner of these practices and had the net manufacturing and production costs worldwide. Although many manufacturers were able to replicate Toyotas lean manufacturing system, the company is still one of the most profitable manufacturers in the world. 4. Strong brand portfolio. Toyota currently sells about 70 different models of cars under its namesake brand.This does not only increase brands awareness still also satisfies nearly either consumer chemical congregation needs. Toyotas flagship models are Corolla and Prius. 5. 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 Toyotas early move towards change hybrid and efficient cars is the strength a few(prenominal) competitors can match. Weaknesses 1. Large-scale recalls. Toyota had instead a few large-scale vehicle recalls over t he past few years.The company recalled 9 million vehicles in 2009-2010 and 7. 43 million cars in 2012. Such recalls does not only hurt the firm financially but significantly damages firms brand. 2. Weak presence in the emerging markets. Toyotas main markets are Japan, US and Europe, while such(prenominal) emerging economies as chinaware or India make only a small percentage of all Toyotas sales. Due to poor presence in the largest automobile market (China), Toyota will find it hard to make out with GM that has huge market share there. Opportunities 1. Positive attitude towards green vehicles.Today consumers are more aware of the negative effects (air pollution) caused by cars. Large quantities of CO2 emissions intensify greenhouse effect and negatively impact the deportment on earth. Thus, consumers are more likely to buy new hybrid and electric cars that emit less(prenominal) CO2. 2. Increasing fuel prices. Increasing fuel prices open up large markets for Toyotas hybrid cars as consumers electric switch towards efficient cars. 3. Changing customer needs. By introducing new car models, Toyota could fulfill varying consumers tastes and needs and access wider customer group. 4. Growth through acquisitions.Toyota has successfully acquired other car companies in the past and should continue doing so to grow, recognise new skills, assets and access to new markets. Threats 1. Decreasing fuel prices. There is heights possibility that future fuel prices will drop, as more shale gun for hire will be extracted. For this reason, fuel-efficient hybrid and electric cars will become less attractive to cost conscious consumers that are the main customer group for Toyotas Prius model. 2. New emission standards. New emission standards introduced by the organisation would require more investments into producing cleaner engines.More investments mean less profit for Toyota. 3. Rising raw material prices. Rising raw material prices are peculiarly important to automobiles manufacturers. Higher prices mean higher costs and less net for Toyota as the raw metals are the main components in car manufacturing. 4. Intense competition. Toyota faces more intense competition from other auto manufacturers more than ever. Volkswagen group is strongly growing and GM steps up after its shakeup to become more competitive than ever. 5. Natural disasters. Toyotas has manufacturing facilities in Japan, Thailand, China and Indonesia.These countries, including others, are often subject to natural disasters that disrupt manufacturing in the facilities and diminish Toyotas production volumes. 5. Appreciating yen exchange rate. Most of Toyotas tax income comes from foreign countries. The profits earned abroad must be displace back to Japan and converted to yen. Appreciating yen exchange rate against other currencies means lower profits for Toyota. Sources 1. Toyota (2013). Investors 2012 Financial Results. Available at http//www. toyota-global. com/investors/financial _result/2012/ 2.Toyota (2013). Company profile Overview. Available at http//www. toyota-global. com/company/profile/overview/ 3. Interbrand (2013). Best spherical Brands 2012. Available at http//www. interbrand. com/en/best-global-brands/2012/Best-Global-Brands-2012. aspx 4. Pantong, K. (2013). Toyota investing on big things in Thailand. Available at http//www. nationmultimedia. com/business/Toyota-investing-on-big-things-in-Thailand-30198606. html 5. Wikipedia (2013). Toyota. Available at http//en. wikipedia. org/wiki/ToyotaHybrid_electric_vehicles