Toyota Motor Vehicles: SWOT Analysis

Toyota push Vehicles SWOT AnalysisToyota travel Vehicles compassToyota Motor Corporation is a famous japanese multinational corporation, and is considered the worlds instant largest auto bewilderr of automobiles. The founder of Toyota is Kiichiro Toyoda, who born in 1894, and the son of Sakichi Toyoda, who was popular in the invention of the automatic loom.Toyota motors became a mainstay of Japan economy 1n 1960. And it start out great growth in this m. And the annual sale of TMC in Japan was about one gazillion dollar I 1962IntroductionToyota Motor Corporation, being a multinational is the worlds largest auto causer in equipment casualty of gross revenue volume. As of 2008, Toyota employs most 316,000 people around the world in analogy to befriend ranked automaker General Motors 266,000 employees. The telephoner is mainly engaged in automobile business and monetary business.In end of 1989, Toyota started its manufacturing in europium by having two main manufacturing plants working in UK. It provides all(prenominal) ranges of elevator gondolas from mini fomites to monolithic trucks.Toyota PhilosophyToyotas c be philosophy has evolved from the companys origins and has been reflected in the terms Lean Manufacturing and Just In quantify Production, which it was instrumental in developing. The Toyota look has four components 1) Long-term thinking as a basis for management decisions, 2) a process for worry-solving, 3) adding judge to the organization by developing its people, and 4) recognizing that continuously solving root problems drives organizational learning.They quite a littles in wide range of railcars correspondingAvensisPreviaDynaCBU CamryCoasterLand cruiser PradoFortunerToyota Motors main contestsGeneral Motors (GM) It was the worlds largest selling vehicle maker but their commercialise shares were decline in the 80s and mid 90s.Ford It was the certify largest motor car selling and gain making company in the world right b ehind the GM friendship.Chrysler It was the third main competitor of Toyota. The company was to the highest degree gone bankrupt during the 80s but their government turn out their company and saved them.Main BodySWOT Analysis(S)trengths champion of the main biggest strengths of Toyota is the JUST IN TIME concept. Just in Time spirit implies to the two opposing forces of providing fast andflexible response, and yet expression mechanisms and systems that are efficient and waste-free. The concept is to provide the right product and information, at the right time, in the right amount, in the right manner, while maintaining richly standards of efficiency and cost control. JIT has resulted in ZERO inventory and enormous preservation in the cost.The company has recorded a strapping financial cognitive operation in recent years. Toyota Motors revenues extendd at a compound annual growth rate of 11.1% during 2004-08.The ships company as fountainhead as had witnessed a considerable sum up in profit strength. During 2004-08, the average operating profit margin and net profit margin of the company stood at 9.1% and 6.5%, respectively. The stiff financial performance of the company has contributed to its securities industriousness domination. This, in turn, enhances investors confidence in the company for investment.Toyota is one of the outdo leading self-propelling brands in the world. In the annual ranking of exonerate 100 spheric brands by BusinessWeek and Interbrand in 2008, Toyota figured in the 6th position. According to the survey, Toyotas brand assess has increased by 6%, to shoot $34.1 billion in 2008. In addition, it is the highest ranking automotive brand puddle in the world. It is ranked well ahead of its competitors same(p) Mercedes, BMW, Honda, Ford, Hyundai, Porsche and Nissan. For instance, in the similar period, Ford has been human faced with a number of troubles, including a failure to accumulate its goals for SUV mileage gains or to exploit its well-regarded Escape intercrossed subsequently, the brand value of Ford fell by 12%, to $7.9 billion in 2008. Toyotas opulence car, Lexus, excessively has an independent ranking in the top 100 global brands. The brand value of Lexus was around $3.6 billion, with a ranking of 90. Some of the former(a) popular product brands of the company includeCorolla, Camry, Sienna, Prius and Scion. The companys strong brand chassis gives it considerable competitive advantage and helps the company to register higher gross gross sales growth in domestic, as well as in multinational markets.In 2003 Toyota has beaten its rival Ford into third spot, to become the Worlds second largest carmaker with 6.78 one million million building blocks. The company is still behind rivals General Motors with 8.59 million units in the same period. Its strong industry position is based upon a number of factors including a diversified product range, highly targeted marketing and a commitment to turn manufacturing and tone of voice. The company makes a large range of vehicles for some(prenominal) private customers and commercial organizations, from the small Yaris to large trucks. The company uses marketing techniques to list and satisfy customer quests. Its brand is a household name. The company also maximizes profit finished efficient manufacturing approaches (e.g. Total Quality Management).(W)eaknessesUsually big setup faces problems during oversupply as in it the company need to make sure that it is the models that consumers want. Toyota markets most of its products in the US and in Japan repayable to which they are of all time exposed to fluctuating scotch and political conditions. mayhap that is the reason that now the company is beginning to shift its attentions to the emerging Chinese market.Toyota Motor provides pension public assistances and primeval(a) post-retirement health and life insurance benefits to employees. During the form 2008, the company i ncurred post retirement benefit expenses of approximately $709.1m. The company also paid a total of approximately $671.5m for the post retirement benefit plans during 2007. Furthermore, by the end of March 2008, the companys projected pension and post-retirement benefit obligations stood at approximately $14,865.9m as compared to the plan assets of approximately $11,256.4m, resulting into an unfunded status of approximately $3,609.5m. Sizeable unfunded post retirement benefits would force the company to make periodic cash contributions towards bridging the gap between post retirement benefits obligations and planned assets, which would reduce cash available for growth plans.The company needs to harbour producing the 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 labor. So if the car market experiences a down turn, the company could see over subject matter. If on the early(a) hand the car market experiences an upturn, then the company may escape out on likely sales due to under capacity i.e. it takes time to accommodate. This is a typical problem with high volume car manufacturing companies.(O)pportunitiesWorldwide demand for light hybrid galvanising vehicles (HEV) is estimated to reach 4.0 million units by 2015. Rising energy costs and increased emissions regulations are plausibly to increase the demand for HEVs, as hybrid engines are more fire efficient and less polluting than conventional gasoline and diesel engines. The primary markets for HEVs impart be within Triad countries (the US, Western Europe and Japan), although the quickly increment Chinese market is also expected to experience relatively strong demand for these fuel efficient and environmentally amicable vehicles.Toyota Motor political party is keen to capitalize on the growing demand for hybrid electric vehicles. The company has spent a large amount of money for t he instruction of hybrid vehicles over the years. The accumulative total of Toyota Motors hybrid vehicle sales reached 1.5 million in June 2008. Furthermore, the company plans to expand its hybrid lineup and accomplish annual sales of one million hybrid vehicles by early 2010. For this, the company plans to introduce demand-creating products. The company also launched models such as the Prius and LS600h hybrids at the 2008 Beijing outside(a) Automotive Exhibition, held at the unseasoned China International Exhibition Center in Beijing. The companys emphasis on hybrid engine room will enable it to capitalize on the positive market trends in this segment to enhance its market positionLexus and Toyota now fox a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon attack technologies developed by the organization. Such moves digest only firm up Toyotas interest and investment in hybrid RD.Toyota Mo tor has launched several refreshing models in year 008. For example, in April 2008, Toyota Company has displayed a total of 50 concept vehicles at the 2008 Beijing International Automotive Exhibition. The company has launched its models including the compactYaris, the new-fangled Vios and Lexus LX570 SUV, along with concept cars such as the iQ compact and the person-to-person mobility vehicle i-REAL. The company also displayed models such as the Prius and LS600h hybrids and the GOA (Global Outstanding Assessment) collision-safety physical structure represented by a Camry and Crown models. Besides helping to make additional revenues, new models will also help the company to revamp its aging model line upToyota is going to target the urban youth market. The company has launched its new Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a genuinely competitive segment. The vehicle itself is a unique one.Conv ertible, with models extending at their rear The pin down segment is notorious for it narrows margins and difficulties for branding.(T)hreatsThe worldwide automotive market is highly competitive. Toyota Motor Company is facing tough competition from other automotive manufacturers in its various markets. The competition among various auto players is likely to exaggerate in light of continuing globalization and consolidation in the worldwide automotive industry. The factors affecting competition include product quality and features, the amount of time required for innovation and development, pricing, reliability, safety, fuel economy, customer service and financing terms. increase competition may lead the company to lower vehicle unit sales and increased inventory, which may result in a progress downward price pressure and can negatively affect the companys financial condition and results of operations.The European Union (EU) Commission and the EU Parliament behave adopted a direct ive that establishes increasingly stringent emission standards for passenger and light commercial vehicles for model years 2005 and thereafter. Under the directive, manufacturers will be responsible for the emission performance of these vehicles for five years or 100,000 kilometers, whichever occurs first. A more stringent Emission standard (EURO 5) is also on the tabularise of the EU legislative bodies and is likely to be effective from 2009. This will produce more tough competition to work in EU as they would require more to concentrate on quality which will increase their cost and will lead to increase in prices by which the other competitors in the area would take advantage as their home vote out?As with any other car manufacturer, Toyota is facing great deal of competitive rivalry in the car market. Competition is increasing almost on the daily basis, with new entrants coming into the market from China, South Korea and new plants in Eastern Europe. The company is also expos ed to any question in the price of raw materials such as rubber, steel and fuel. The get wind economies in the Pacific, the US and Europe is also experiencing slowdowns. These economic factors are potential threats for Toyota.PEST Analysis(P)oliticalToyota had a roundabout of help from the local government, including task breaks. The company is likewise linked closely to the policies ofgovernments, the earnings of banks. Toyota is currently prevail by little more than a handful of firms, each wielding great financial, emotional and political power. The companys approach to dealing with political institutions has not always been brilliant. It tends to be good on technical issues, although it has not always in full presented the longer-term options, in order to make the choices and their implications clear. Toyota is expected to sell Indiana and its assets to the world.(E)conomicFor more than of the developed world, Toyota Company is a pillar company in auto mobile business, a flag of economic progress. The Toyota Company has been a marrow squash company, a unique economic phenomenon, which has dominated the twentieth century. However, the automobile industry including the Toyota now suffers from a series of structural schisms and has become riddled with contradictions and economic discontinuities. For the capital markets and the finance sector, it has lost a lot of its significance, as a result of ever declining profits and stagnant sales. The proliferation of products means that it has become hopelessly wasteful of economic resources. While all these and more sound like a very gloomy assessment of such a huge economic phenomenon, the industry is not in the end despondent. A various future is possible for the industry, a highly desirable one.(S)ocial and CulturalToyotas ability to bring to market world-class vehicles depends, in large part, on the craft and hard work.As part of the development in automotive industry, the Toyota Company actually aff ects the society as a whole. It employs millions of people directly, tens of millions indirectly. Its products have alter society, bringing undreamed-of levels of mobility, changing the ways people live and work. The social value of the additional mobility that this industry brings involves the value of the people being able to transplant over longer distances easily, among many others. There are, on the other hand, finicky social issues to address in many developing countries, often those that are the result of an undertone of religious faith. Toyota company has the role toplay in helping develop the mobility of such countries and it can be achieved at an delightful social cost of the country is prepared to learn the necessary lessons from those who have traveled this route before it, and to make the necessary investments.(T)echnologyIn 1994, the Toyota Company had given its employees the challenge to bring up with new technological exchange in cars. The car for the 21st centu ry. For this purpose a special police squad was developed to make the car. This team was named as G21 team. In 1997 Toyotas G21 team make a car which is both fuel efficient and environment friendly as well. They made a hybrid car named as Prius. This car was a major advantage in Japan at that time. gutter that time Toyota hasnt introduced this technology outside Japan. In 2001 Toyota introduces hybrid cars worldwide. Hybrid car can be run on engine or bombing or both. The production of first hybrid car in Europe was started in 2010. Success of hybrid car can be shown by the fact that over 3,000,000 cars were sold worldwide.There are different models of hybrid cars had been made so far which are as follows,NHW10 object lesson (1997-2000)NHW11 Model (2001-2003)NHW20 Model (2004-2009)NHW30 Model (2009-till present)RecommendationsToyota is being one of the top motor vehicle producers in the world still needs to do a lot more improvements regarding their quality and services by taki ng seriously the consumer complaintsSince pass few months the company is facing some quality issues which need to be rectify soon because some researchers are also pointing out these which is creating a bad impact for the company and its market share.Toyota also had added some experts containing both consumers and experts. They had been recommended by their union back in Japan to review their quality but they are not directly affiliated with the Toyota Company. They also need to review these members and had to directly affiliate them with Toyota.Toyotas main hazard in their success had been their big recall of its cars all over the world. The company had failed to identify and elucidate this issue and this can create big impact in their sales and perception of their customers while purchasing car. So they need to rectify and crop this problem quickly so that the image of the company can be retained.Moreover they also should make a proper consumer profile on their website as well. This will enable them to easily identify its consumers and make the system for marketing according to that.The company had used social media like face book and twitter for the consumers. It is the demand of the time of these days but the problem is that they are not making good use of it. Their participation through these is almost zero. If they improve on that participation and make it more quick then that will help the company a lot and can be a good marketing source as well.