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Toyota Motor SWOT & PESTLE Analysis

ID : 5282153| Jul 2018

COMPANY PROFILE -Toyota Motor

Business Sector :Automobile

Operating Geography :Asia, Japan, Global

About Toyota Motor :

Toyota Motor Corporation was established in the year 1937. Toyota is presently the largest selling car manufacturer in the world, and employs close to 350,000 people. It is headquartered in Toyota, Aichi prefecture Japan, and has 69 plants all over the world.

Toyota Motor Revenue :

2.8539 trillion yen ($23.782 billion) - FY ending March 2016

Competitive Analysis of Toyota Motor

SWOT
PESTLE
The SWOT analysis for Toyota Motor is presented below:
Strengths
Weaknesses
1. Strong brand value
2. Research and Development
3. Good financial health
1. Hierarchical organizational structure
2. Overdependence in certain markets
3. Lack of flexibility due to large size
Opportunities
Threats
1. Developing the market in emerging economies
2. Growing demand for fuel efficient and hybrid cars
3. Researching automated driving technology
1. Cab aggregators
2. Rising Fuel prices
3. Emergence of innovative competitors
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Detailed SWOT Analysis of Toyota Motor

Weaknesses

1. Hierarchical organizational structure: The hierarchical organisation structure implemented by Toyota has certain inherent disadvantages. Such a structure results in the formation of silos, where one department becomes indifferent to the performance and issues of another department, and places its own success over the well-being of the entire firm. Such an organisational structure also results in a secretive culture, where any negative information is held tightly within the firm, or it fails to make its way to the top management, due to them being insulated from the lower levels.

2. Overdependence in certain markets: Toyota sold roughly 28% of its vehicles in North America and around 26% of its vehicles in Japan. Any negative events, in any of these markets will have a huge impact on the firm financially. [4]

3. Lack of flexibility due to large size: Toyota Motors has grown to be one of the largest automotive firms, with close to 70 plants and an employee base of around 350,000 people. The size of the firm is a huge drawback when it tries to bring about changes, in response to its environment. The firm ends up losing its spontaneity and becomes entrenched.

Opportunities

1. Developing markets in emerging economies: China, in terms of car sales volume, is the largest market, and till 2015, also boasted of the highest growth in volume of car sales. Indian auto market is expected to grow at 8% and reach around 4million vehicles in 2017, as per Nakanishi Research Institute. They have also predicted a growth of 8% and 9% in Vietnam and Thailand respectively.

2. Growing demand for fuel efficient and hybrid cars: Consumers concern for the environment as well as regulatory changes has pushed up the demand for fuel efficient cars as well as hybrid vehicles. Toyota has already developed a name for itself in the Hybrid cars category with the Prius, and should look to leverage this in other markets as well.

3. Researching automated driving technology: Connected cars are almost upon us, and hence spending in the next big thing that is automated driving would be the key to success. Automated driving cars will be a huge market in the future as it will decrease travelling time and increase passenger convenience.

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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in Toyota Motor Analysis Report
1. BrandZ Top 100 Most Valuable Global Brands 2015: http://wppbaz.com/charting/19

2. Global Innovation 1000: http://www.strategyand.pwc.com/global/home/what-we-think/innovation1000/top-innovators-spenders

3. Balance sheet and profit/loss statement: https://finance.yahoo.com/quote/TM/financials?p=TM

4. Region wise sales of Toyota: https://www.statista.com/statistics/267314/vehicle-sales-of-toyota-by-region-since-2008/

Copyrights and Disclaimer

Toyota Motors SWOT analysis has been conducted by Jiku Thomas and reviewed by senior analysts from Barakaat Consulting.

Copyright of Toyota Motor SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions page for usage guidelines.
Toyota Motor SWOT & PESTLE Analysis
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