Toyota Swot Analysis: Internal
Strategic Management: External Analysis
Module 2 Case
Introduction:
Presently, the automobile industry as a whole is awash with both opportunities and threats. Toyota seems to be at the extreme end of the spectrum in both categories. While Toyota shares the same threats as most other manufacturers, recent problems with recalls and pending litigation have seriously damaged the company’s brand image and, particularly in North America, Japan, and Europe, consumer confidence in Toyota has taken a dangerous downturn. For Toyota, the constant threat of increased competition is greatly accentuated by these recent problems. However, on the other side of the equation, the company is best positioned to take advantage of the opportunities that exist for automakers: development and sales of hybrid and other “alternative fuel” vehicles, and expansion into developing markets such as Asia, Africa, and Central and South America.
Body:
With most of America, and to only a slightly lesser extent, the rest of the world talking about Toyota lately, most of the news is not good. Talk centers on what is undoubtedly the greatest threat to the company; significant loss of its brand image and customer loyalty, brought about by unintended vehicle accelerations, recalls and impending litigation. Toyota itself is rather quiet in this area in the body of its 2009 Annual Report. The company prefers to blame its problems on a “prolonged slump” in North America, a “sharp downturn” in Asia, a “rapid contraction” in Europe, “consolidated sales” in Japan, and “stagnant sales” in Central and South America, all brought about by the “economic deceleration” of 2008. The President’s message obliquely mentions the company’s woes when he speaks of “implementing a stronger product-oriented management model focused on making better cars, and redoubling our commitment to the customer first” (Toyota, 2009 Annual Report). The only direct reference to the aforementioned problems is located in the
Module 2 Case
Introduction:
Presently, the automobile industry as a whole is awash with both opportunities and threats. Toyota seems to be at the extreme end of the spectrum in both categories. While Toyota shares the same threats as most other manufacturers, recent problems with recalls and pending litigation have seriously damaged the company’s brand image and, particularly in North America, Japan, and Europe, consumer confidence in Toyota has taken a dangerous downturn. For Toyota, the constant threat of increased competition is greatly accentuated by these recent problems. However, on the other side of the equation, the company is best positioned to take advantage of the opportunities that exist for automakers: development and sales of hybrid and other “alternative fuel” vehicles, and expansion into developing markets such as Asia, Africa, and Central and South America.
Body:
With most of America, and to only a slightly lesser extent, the rest of the world talking about Toyota lately, most of the news is not good. Talk centers on what is undoubtedly the greatest threat to the company; significant loss of its brand image and customer loyalty, brought about by unintended vehicle accelerations, recalls and impending litigation. Toyota itself is rather quiet in this area in the body of its 2009 Annual Report. The company prefers to blame its problems on a “prolonged slump” in North America, a “sharp downturn” in Asia, a “rapid contraction” in Europe, “consolidated sales” in Japan, and “stagnant sales” in Central and South America, all brought about by the “economic deceleration” of 2008. The President’s message obliquely mentions the company’s woes when he speaks of “implementing a stronger product-oriented management model focused on making better cars, and redoubling our commitment to the customer first” (Toyota, 2009 Annual Report). The only direct reference to the aforementioned problems is located in the
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