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Toyota Motor Corporation (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Toyota Motor Corporation

Toyota Motor is one of the leading auto manufacturers in the world. Toyota sells its vehicles in more than 170 countries and regions worldwide. Toyota’s primary markets are Japan, North America, Europe and Asia. It is headquartered in Toyota City, Japan and employed about 316,121 people as on March 31, 2008.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong financial performance
  • Brand image
  • Strong performance in Asia region
  • Research and development activities
  • Toyota production system

Weaknesses

  • Poor profitability of ‘financial services’ segment
  • Expenses related to post retirement benefits for employees

External

Opportunities

  • Increasing demand for hybrid electric vehicles
  • Opportunities in Asian market
  • New models

Threats

  • Economic slowdown
  • Competition in the global automotive market
  • Tightening emission standards
  • Appreciating Japanese Yen against US Dollar
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