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SWOT evaluation of automobile maker Toyota

Today's business world can be now be described as a fiercely competitive market and so the goals of institutions is to contend and survive through creating unique and distinctive capacities in order to gain a competitive advantages by utilising their central competencies. Here the competencies actually identify the essential and unique knowledge processed by the organization. The business enterprise enterprises in the current developing nations operate in a severe controlled and more complicated working environment. Another proper plan of the business would be to utilise the main competencies combined with the background and environmentally friendly influence. These functions which are distinctive make the business to start competitive gain among the business enterprise world. Today's market is demonstrating a different facet of market where phases such as performance and quality of the merchandise is mainly considered by the clients as opposed to the price. In such a kind of business market, the procedure of new product development and its effective management is the major essence of the said competitive management.


Toyota Motor Company is a famous Japanese multinational corporation and can be studied as the second largest manufacturers of trucks, cars, robots, buses and financial services as well. Kiichiro Toyoda is the creator of Toyota who was simply popular for inventing the automated loom. The heart of creation and research was inherited by Kiichiro from his father and so he spends his entire life in the heart of manufacturing autos. A long time of hard work finally made Kiichiro in completing the A1 prototype vehicle in the year of 1935, which is said to be the beginning of creation of Toyota Motors Organization.

The company's first Type A Engine motor manufactured in the year 1934 was then found in the first Model A1 passenger car manufactured in the entire year 1935 and the G1 truck which was later created in the year 1935 all that actually resulted in the AA Model passenger car in the entire year 1936. In addition to the car business, the company works on textile business as well where they made automated loom and which is now working totally computerised and their electric sewing machines can be found all over the world. The business now has a number of factories about the world where they produce and assemble vehicles within the neighborhood market for distribution. Toyota factories are positioned in countries such as Australia, UK, Canada, Czech Republic, Poland, USA, France, Philippines, Vietnam, China, Thailand, Malaysia, Mexico, India, Pakistan, Indonesia, Japan, Mexico, Venezuela, Argentina, Brazil, South Africa and Turkey. In addition to the above countries, the business's headquarters is situated in Toyota, Aichi, Japan.



The company is one of the world's best known brands with the experience which can't be overemphasised in the terms of manufacturing. Power is that their product list is diverse with wide variety of segments for the clients to choose that could fit their lifestyle where in fact the list includes Land Rover, Jaguar, Ford, Aston Martin, Volvo, Mercury and Mazda. Toyota is also known as the supportive of societal causes which helps the attack for Breast Cancers. They will be the moving assembly lines pioneers which made their creation very reasonable as well as faster and productive. The business's international visibility makes the business the second most significant automaker in the world.


The complexity of the business made the company's organizational structure a lttle bit inefficient. This actually affected the ability of the organization to control their international network of companies, branches and subsidiaries. This weakness in the organizational composition actually shows the continuing future of Toyota in a frantic situation financially because the current situation of the business is still with fantastic financial debts. Despite the fact that the company is not in a situation to be bankrupt, it could be seen that the Toyota Management is currently in a good spot and therefore need to make certain that it generally does not go tighter anymore. Increasing competition also made the company sales to go down and somehow the company failed to get over the challenges.


Toyota Company matching to their corporate responsibility to be environmentally friendly, made the possibility to keep cleaner engine unit emissions. They further had a potential for make a great image in the general public with the help of environmental group works in order to keep the surroundings clean. There may be one great practical prospect for the company where they already started investing in solar energy. The business have an opportunity to regionalise and specialise their worldwide functions which could enhance their transnational linkages. The business's existing innovation capabilities on automobiles will make them offer an chance to make good opportunity in the market other then your competitors.


Very small competitive rivalry is being running in the auto industry and so Toyota faces exactly like another organisations. The business is also afflicted by risks of prices change of the recycleables like fuel, rubber, glass and material. The economies in the Pacific, Europe and US are also showing slowdowns. Analysis implies that these are effective threats to the company financially. Foreign competitive activities have been mainly been afflicted by the company due to the overall position in the industry globally.


The development technology which Toyota has is usually to be used as a great advantage of the company and the creation method what the company follow is talked about in this portion. The key elements of Toyota's success are referred to as follows:


The production of the company is actually predicated on the time available and your time and effort for the production plants in order to create the calculated quantity of items. A couple of two calculated types of processing that happen to be low and over creation where low development is limited to the necessity of the company and over production is where in fact the company produces products in sufficient and extra and stock the extra products for sale at another time. Over production is normally preferred when the business is operating out of time or when time isn't available later for production. The over produced stock will be stocked for future deal, which is not actually a loss for the company and the deal is not actually influenced.

The above picture shows the flow of the development system in Toyota. The Just in Time factor is seen as the essential aspect in the production cycle. The Low fat development system is the actually shown system in the image.

Lean Development:

The lean production system follows an integral pattern of circuit which is described below.

Reduced Installation:

This is one factor which is in fact dependant on enough time and cost of the business. To be able to achieve the same, the staff are trained correctly with an aim of completed the proposed work within enough time being with reduced cost.

Pull creation and flexibility is computed as another benefit of the procedure.

Proper training is provided to the employees plus a good working atmosphere in order to arrange them to perform as required.

The product quality is another major part considered as to be sure that the over creation at limited time will not affect the product quality.

Supplier will be the next portion which is another important portion where in fact the company should make sure that the company remains continuous as having less products or any problems with the source will affect the business's production rate.

Multi skilled employees should be produced by the companies by giving the employees the correct training they required and providing them with the perfect working atmosphere which makes them easy to work and succeed to make the company's creation rate higher. Hence the business should make sure that they employ the service of the skilled employees they needed.


Customer is the starting point of strategy where the primary aim is the fact that the business should maintain good connection with the customers that will indeed help the business to introduce more and more products into the market. Hence a good marriage is derived from the service and product quality distributed by the company therefore it creates that the strategy should be structured to attract the customers to the merchandise or the company. The merchandise need make the necessity of creation of products and so the demand of the product can also lead to the business benchmarks to increase. Thus the manufacturing technology is also depended on the development. The most recent technology used will make the production much better than the previous technologies put on the production. Supply chain is the segment where in fact the next strategy is to be applied since the products should be delivered to the proper markets after development. This role is positively played out by the resource chain where in fact the end of the chain is a customer. Steps starting from production till the client end will move on properly if the supply string is strong enough.

The below stand will show the slim creation system which Toyota is following.

Time Quality Management:

Time Quality Management is a portion which focuses the organizational functions. The primary aim of the portion is to make the best from the company within the lowest time available.


This is the section where the manufactured products are inspected for the proper quality in order to ensure they are really perfect to meet up with the required standards. Preventing this segment can make the merchandise quality differ and so affect the trustworthiness of the organization. Product testings are usually conducted within a specific department of the company.

Whole Sale Development:

The Whole Sales Production of your company depends upon several factors such as morale, security, delivery, quality and cost of the product. Whole Sale Development identifies the creation of the products in huge variety or says large scale apart from normal. This is normally done only when the merchandise demand and supply is high.


Automobile industry is really considered to be involved in making, building market and the product sale. There are several factors which have an effect on the said system. They receive below:


















Distribution cost



Costs of supply


Business procedure:

Waste reduction

Project time


Business control:


Lead time


Cost of goods

Fill rate


Inventory management:


Finished goods

Raw material

Inventory ratio


The business environment exerts several regulations to be used in order to be in line with the policies which come from environmental, sociable and political effects. The main aim of the company exerting such guidelines is to stay in the precise pathway in order to be in a safe way. The Toyota Officials saying about the rules are as follows: "These guidelines and rules must reduce the profit. However the company have to fit in to the environment and respect every single factor of the environment and the government. If the business can follow the rules and regulations then the company will have safe time and the company can bring a good reputation provides more customer impression".


This is the section where the company makes decision about the product quality and expected standard requirements. The detail by detail process of Benchmarking provides more standardised product and even bring criteria to the company. Benchmarking matching to Toyota is as practices: "this is mainly to increase the company. The bench mark will be different for each company. This is set by the business itself and it will bring changes to the standard protocol. So basically this is a protocol to enhance the standard of the company"

Customer Service:

Customer Service can be an important segment within the strategy as the process of strategic evaluation look in the client satisfaction within the service and product. Satisfaction shows the growth in business opportunities. Since customer service should be well organized and planned, the client reactions should be supervised and the company activities should be accordingly as required. This can indeed help the business to understand the customer requirements and so the company could work out for the same within enough time being. Customer support department should be specifically trained sufficiently as they could be considered as one side of the organizational frontline as mingling with the consumers of the own products.

Market Stocks:

Investment in Toyota depends upon the proposal presented to the stake holders so when they ensure that the business can take advantage of the proposal makes a good impression. The later part will be to discuss about the proposal and let to learn the way the company could make profit from the new idea.


The deal of the merchandise will actually depend on factors such as development, circulation, product standard, demands, etc. Several strategies are developed to be able to increase the sales of products and the majority of them focus on product understanding to the general public, where adverts are a significant part of the segment. Once advertising are done with the sale, the next role is of increasing the product demand. This is merely possible by giving quality products and services to the consumers. What Toyota says about sales are the following: "The distribution is very important to the sale. Every single area of the market should reach the product. For that people desire a good distributer who knows the marketplace well".


Multi skilled employees should be produced by the companies by giving the employees the proper training they required and providing them with the perfect working atmosphere making them easy to work and succeed to make the company's creation rate higher. Hence the business should make sure that they seek the services of the skilled employees they needed.

Production Level:

Once the company can produce the products to the demand level, it demonstrates the business will be normally able to enter goods in to the market at the right time. The primary roles played in the segment will be of the technology and the worker skills. Newer systems make the creation easy and easy and also save time as well. Production rate can be increased with modern technology. The development level to be looked at by the business will actually depend on the product demand and therefore can be decided to be low or high level of development.


What Toyota says about their future programs are the following: "The main aim of the business is to stabilize it and bring new ways of go saturated in the car mobile market. This can be done in a variety of steps by doing the evaluation on the market and increase the standard from it by looking what the company is lacking. The next thing is to observe how our competitors take action on us. Analyze each and every move of them and try to improve than them"

Customer service is another section where the company is currently focusing at because the customer satisfaction causes the entire organizational value. Customers are always given the first goal by the company.

The technology factors and enough time factors to be scheduled by the business in order to make the future progress stable because the competitor power should be observed and changes are necessary in order to make the business value greater than them available market. Toyota happens to be facing several issues with the vehicle benchmarks. This is a concern where the company is looking to make changes through in order to provide better customer support. The company unveiled several new strategies in order to fix the problems as well. But in future changes are necessary to be able to survive. There are two sections were Toyota future relies. They receive below:

Technology: What Toyota says about technical progress is: "If the technology is latest then your rate of production will be high. The creation can be higher level and low level. This may depend on the demand rate of the products"

Competitors: What Toyota says about opponents are: "In case the competitors are strong then the company should be careful and use the best resources which they have. So the company should know the strategy which they have to focus on and it will be easy for them to market level"

In the first 90 days of 2007, Toyota together with its half-owned subsidiary Daihatsu reported number one sales of 2. 348 million models. Toyota's brand sales acquired increased 9. 2% largely on demand for Corolla and Camry sedans. The difference in performance was essentially related to surging demand for fuel-efficient vehicles. In November 2006, Toyota Motor Manufacturing Texas added a facility in San Antonio. Toyota has experienced quality problems and was reproached by the Japanese Government for its recall practices. Toyota currently maintains over 16% of the united states market share.


Toyota Company is great in its core competencies and they are able to utilise them over to gain edge over their competitors. The Toyota way of creation is truly a idea term where they have a list of ideas to be implemented which make them differ from that of the challengers. All the current affairs of the company will indeed turn into the sustainability problem of the company and provides them a huge heap in the business. Also the trader relations in the business make them a large heap in the market since the ideas of creativity by the business actually have a large part to be dealt by the show holders of the company.

The company is one of the world's best known brands with their experience which can't be overemphasised in the conditions of manufacturing. Power is the fact their product list is diverse with wide selection of segments for the customers to choose that could fit their lifestyle where the list includes Land Rover, Jaguar, Ford, Aston Martin, Volvo, Mercury and Mazda. Toyota is also known as the supportive of societal causes which supports the struggle for Breast Cancer tumor. They will be the moving assembly brand pioneers which made their development very affordable as well as faster and reliable. The business's international vulnerability makes the company the second most significant automaker on earth.

Toyota Company matching to their corporate and business responsibility to be environment friendly, made the possibility to keep cleaner engine emissions. They further had a chance of build a great image in the public with the help of environmental group works to keep the surroundings clean. There is certainly one great practical prospect for the business where they already began investing in solar power. The business have an opportunity to regionalise and specialise their worldwide operations which could improve their transnational linkages. The business's existing innovation capacities on automobiles will make them offer an possibility to make good scope in the market other then the competitors.

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