SWOT Analysis of Toyota
We have analyzed Porter’s Five Forces of Toyota and PESTEL Model of Toyota. Thus in this post, I will list the SWOT of Toyota. 1. Opportunities
-Recovery of auto industry: The automotive industry showed the signs of recovery, which is predicted to be gradual. The market will reach a volume of 129.9 million units in 2013 (Durbin, and Krisher, 2010). This provides positive information to the automotive manufacturers and stimulation to the investors. -Hybrid electric vehicles: The increasing energy costs and stringent emission regulations enhance the demand of the hybrid electric vehicles because of its high fuel efficiency. It is estimated it will reach 4.0 million units by 2015. Besides US, Western Europe and Japan, China is estimated to be next large market. -Opportunities in Asian market: The Asian automotive market became the main increasing point and is estimated to increase in the following several years. Thus, the automotive corporations should concentrate on the Asian markets, such as China, and India. 2.Threats
-Competition in the global automotive market: The worldwide automotive market is highly competitive, and becomes stronger due to the globalization, which is involved into every factor of automotive. The competition may lead to reduce the automobile unit sales, which may influence the company’s financial condition. -Tightening emission standards: The tightening emission standards adopted by the EU increase the additional costs for product development, testing and manufacturing operations for the automotive manufactures. 3.Strengths
-Leading brand recognition: Toyota is one of the leading automotive brands in the world. And its brand Lexus values around $3.1 billion. The other brands Corolla, Camry, Sienna, Prius and Scion are popular. The leading brand image gives it significant competitive advantage and charge premium prices. -Focus on R&D activities: Toyota strongly focuses on R&D to expand its product. The...
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