Toyota Motor Corporation (TMC) is a Japan-based multinational automaker. Kiichiro Toyoda founded Toyota Motor Corporation in 1937 and now the company is headquartered in Toyota, Aichi, Japan. It is the world’s largest automobile manufacturer by sales and production and it employees more than 320,808 people throughout the world. The company is mainly engaged in the automobile business and financial business. The popular brands of the company are Toyota and Lexus. Toyota also owns and operates Lexus and Scion brands and has a majority shareholding stake in Daihatsu and Hino Motors, and minority shareholdings in Fuji Heavy Industries, Isuzu Motors, and Yamaha Motors. The company includes 522 subsidiaries. It is a leader in the car manufacture, assembly and distribution the world over. Its differentiation strategy has made it enjoy an almost monopolistic presence especially in the developing nations of the world. SWOT ANALYSIS OF THE COMPANY
Having competent and experienced management team and board members. •
Distribution of products into the market through wide range of identified branches. •
The company has a strong industry position which is based upon a number of factors including a diversified product range, highly targeted marketing a commitment to incline manufacturing and quality. •
Differentiated products and prices make the Company to be quite distinctive in the market. •
The company maximizes its profits through efficient manufacturing approaches for example Total Quality Management. •
It has very strong presence in Europe due to the accomplishment of Toyota Team Europe. •
It has a strong distribution and marketing efforts focused on the meeting diverse needs, high quality sales and services, and close involvement with customers. •
It presently maintains more than 16 percent of the US market share and is only behind its rivals the General Motors in terms of volume. •
It has initiated new technologies including first bulk-produced hybrid gasoline-electric automobile which had two million sales worldwide in 2010. WEAKNESSES
Large size of management team reduces chances of moving fast into the targeted market, because of slow rate in decision making. •
Different supply interests among the Company suppliers and other competitors. •
The company needs to keep producing cars in order to retain its operational efficiency. Car plants represent a huge investment in expensive fixed costs, as well as the high costs of training and retaining labour. •
From last quarter of the 2009 through the 1st quarter of 2010, it recalled more than 8 million trucks and cars globally in numerous recall campaigns, and temporarily stopped production and sales. •
Toyota relies on giving the customer the product that they want, but does not market to the intrinsic value of its vehicles. •
The company was badly hit by the 2008 financial crisis and declared its 1st annual loss. •
In May, 2009, Toyota Motor Corporation reported yearly net loss of $4.2 billion. •
In 2005, it faced criticism because of large scale re-call and quality issues. •
Toyota offers most of its brands in the Japan and United States, where as competitors’ get global efficiency. OPPORTUNITIES
Break-through in technological standings is a better course for the Company to improve on the quality of its products. •
Regulatory measures ensuring fairness in the market and avoid over-exploitation by other competitors. •
Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies developed by the organization. •
Rocketing oil prices have seen sales of the new hybrid vehicles increase. •
It has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid. •
It aims to target the 'urban youth' market. The company has launched its new Aygo, which is...
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• Hiroshu O. (2003). Chairman’s message. Retrieved February 23rd 2011, from the Toyota company website. http://www.toyota.co.jp/en/ir/library/annual/pdf/2003/chairmans_message_e.pdf
• http://www.articlesbase.com/education-articles/competitive-advantage-between-ford-and-toyoyta-2040128.html#ixzz1F32cgcEF accessed on 24th February.
• http://www.scribd.com/doc/17426065/Toyota-Motor-Corporation accessed on 23rd February 23, 2011.
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