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Toyota has a few strengths on which to build competitive advantage and exploit opportunities in the marketplace. The company has two strong brands in Toyota and Lexus that are internationally recognized, allowing Toyota significant leverage when entering new markets or even negotiating with suppliers. Another strength that Toyota has is a strong global distribution network. Takahashi (2010) notes that even as Japan and the U.S. saw weakness in 2010, the company's gains in China and India were sufficient that it delivered a surprise profit.
There are a number of weaknesses, however, that Toyota has. Its historically strong production processes had a poor year in 2010, and the cost associated with product recalls in that year was ¥170 billion - ¥180 billion. Another weakness that the company has is with its supply chain. Again, the supply chain has historically been considered one of the company's strengths, but it is concentrated in a single region of Japan. When the earthquake/tsunami of March 2011 hit this region, the result was considerable disruption of the company's supply chain for much of the rest of the year. Vehicle production in Japan was down 6% for the year and sales were down 11.5% in Japan for the year (Toyota 2011 Annual Report).
Prior to the earthquake and tsunami, Toyota built strengths in innovation and design, especially on the production side...
The Prius is the centerpiece of the company's innovation into more fuel-efficient vehicles and his been a strong product for the company since its introduction (Toyota 2011 Annual Report). The company during this time was faced with a difficult economic environment in Japan, and of course the global economic downturn that affected most other markets as well (Takahashi, 2010).
This analysis reveals that the company's current strategy for its supply chain management has left it vulnerable to known disaster risks in Japan. While the company boosted production elsewhere in an attempt to make up for the problems in Japan, the effort was insufficient. However, the company's global distribution network is an asset because it has allowed the company to experience strong growth in emerging markets. Non-Japan Asia grew 28% last year; Latin America grew 21.9% and the Middle East grew 22%, while all developed world markets declined in sales. The company's geographic diversification has to this point insulated it against the ongoing economic downturn.
There are two recommendations that could help Toyota to shore up its weaknesses. The supply chain is too reliant on a single region of Japan, and that is something that the company must address. It is important to foster production in…
Works Cited:
Takahashi, Y. (2010). Toyota registers surprise profit. Wall Street Journal. Retrieved May 11, 2012 from http://online.wsj.com/article/SB10001424052748704250104575237492977695362.html
Toyota 2011 Annual Report. Retrieved May 11, 2012 from http://www.toyota-global.com/investors/ir_library/annual/pdf/2011/ar11_e.pdf
It does not want to be left out of a potential boom entirely, even if it is skeptical. Opportunities As well as the opportunity to become a part of the online marketplace, Toyota also has an opportunity to cut costs in one of its weaker markets where it still wishes to retain a visible presence. Toyota is in negotiations with the German automaker Volkswagen so it can standardize more components and
Analysis of Toyota Opportunities and Threats Toyota is the world's leading patent holder in hybrid vehicle technologies, having over 85% of all patents registered in the U.S. Patent Office, in addition to holding over forty different patents in other registries throughout Europe and Asia. This is a formidable platform for growth in this high-growth emerging line of business. Hybrid technologies can reduce carbon emissions by over 60% in the latest engine
Toyota Strategic Management For decades, Toyota has been one of the most admired companies in the world. They were able to turn their image in the 1960's and 70's from cheap Japanese import to the car of choice for millions of consumers worldwide. Toyota's strategy has varied significantly over the years. The company began by primarily imitating many of its competitor's designs and even used some of its components. Much of
12. It has not been implemented in a wide enough spectrum to really gain the attention of parents on a national level. 13. Marketing towards one single brand image sometimes limits a company's capability to market its diversified product line. 14. Targeting previous customers through follow up ay waster valuable resources. T h r e a t s 1. Utilize the global Toyota presence to keep financial budgets and cash flows under control. 2. If
Toyota's Strategic Opportunities And Threats Toyota Corporation (NYSE:TM) is a $226B global manufacturer of automotive vehicles including passenger cars, light and heavy-duty trucks and transportation equipment. Automotive sales globally generated $206B in their latest full fiscal year, Financial Services contributed $13.3B, delivering a Fiscal Year (FY) 2012 Net Income of $4.3B (Toyota Investor Relations, 2013). The most profitable business unit is Financial Services, which is the financing division of automotive sales
Toyota is one of the world's leading automakers. For most of its existence, the company has been unassailable, but this past year has presented the company with a number of challenges. These include plant shutdowns caused by parts shortages as a result of the Japanese tsunami, Japanese consumer spending falling again because of the tsunami, competitive challenges and product quality issues that lead to recalls. As one of the world's leading