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Toyota Motor SWOT & PESTLE Analysis

ID : 5282153| Sep 2020| 15 pages


Business Sector :Automobile

Operating Geography :Asia, Japan, Global

About Toyota Motor :

Toyota Motor Corporation was a spinoff from the Toyoda Automatic Loom Works, and established in the year 1937. Toyota is presently the largest selling car manufacturer in the world and employs 370,870 people as of 2019. It is headquartered in Toyota, Aichi prefecture, Japan, and has 69 plants globally. Toyota Motor Corporation manufactures vehicles under five brands, namely the Toyota brand, Hino, Lexus, Ranz, and Daihatsu. Apart from the automotive sector, Toyota offers financial and housing services under Toyota Financial Services Corporation and Toyota Housing Corporation respectively. Its financial services largely include auto loans and leasing, offered to more than 26,000,000 clients across more than 35 countries and regions as per 2018 annual report. Its housing-related businesses include detached house construction as well as condominium development and housing renovations. Toyota Motor Corporation ranks #9 on the Forbes list of World’s most valuable brands 2019.
Toyota’s mission and vision statement reads “Toyota will lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people. Through our commitment to quality, constant innovation and respect for the planet, we aim to exceed expectations and be rewarded with a smile. We will meet our challenging goals by engaging the talent and passion of people, who believe there is always a better way.”
Toyota’s USP or Unique Selling Proposition sprawls in being the world’s largest automotive manufacturing company as of 2019. Also, Toyota is the global market leader in sales of hybrid electric vehicles and hydrogen fuel-cell vehicles.

Toyota Motor Revenue :

29,379,510 Million Yen – FY ending March 31st 2019 (y-o-y growth 6.5%)
27,597,193 Million Yen – FY ending March 31st 2018

Competitive Analysis of Toyota Motor

Toyota Motor Corporation, a Japanese multinational automotive manufacturer became the world's largest automaker company by setting a trend of manufacturing more than 10 million vehicles per year ever since 2012. Toyota is also the largest company to encourage the mass-market adoption of a hybrid vehicle and is a market leader in sales of hybrid vehicles under its brand, Prius. Thus, the Toyota SWOT analysis shows how the most innovative company of the automotive industry has utilized its competitive advantages to outstand its rivals. The SWOT analysis helps to identify the internal strengths and external opportunities that lead to the saturation of the company. The analysis also presents information on the weaknesses and threats to the company that can hinder its growth.
Capability to produce the largest number of vehicles every year, bell weather and leader in technology, robust R&D, manufacturer of most innovative vehicles, diverse product portfolio, global supply chain, strong brand value, and reputation are few amongst various strengths of Toyota company. These internal strategic factors have deeply strengthened Toyota and impersonated the company with a competitive advantage over its competitors.
One of the most significant weaknesses of Toyota is its product recalls that extensively damage the brand reputation, create negative publicity and adversely affect the profits. In December 2018, Toyota USA announced a recall of Toyota and Lexus vehicles, that was originally scheduled for December 2019 to replace faulty Takata air bags, involving 928,200 models of various types. But just a year later in Dec 2019, a separate group of 1.4 million vehicles were recalled due to defect in the NADI inflators that could result in the inflator either exploding or underinflating during deployment.
Trending demand for fuel-efficient cars, hybrid cars, self-driven cars, connecting cars, etc. creates plenty of opportunities for Toyota to converge its production in this direction.
The worldwide automotive industry and financial service industry are extremely competitive. Consequently, Toyota constantly faces competition threat from its top rivals like Volkswagen, Ford, Tesla, etc. Toyota's success depends on its ability to offer unique, innovative and competitively priced vehicles and services that suffice consumers need on a timely basis.
The SWOT analysis for Toyota Motor is presented below in a SWOT Matrix followed by the detailed analysis:
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
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



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1. Hierarchical organizational structure: The hierarchical organization 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 organizational 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. It is thus majorly dependent on these two markets. Any negative events, in any of these markets will have a huge impact on the firm financially.

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.


This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.

SWOT & PESTLE (combined)
Complete Report
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On purchase, the report will reach your email inbox within minutes. At rare times, a slight delay not exceeding 4 hours might be caused.

Check Out Analysis of Other Relevant Companies


• The SWOT and PESTLE analysis report offers a quick glimpse into the internal and external factors formerly in a matrix format, followed by the detailed analysis
• The SWOT analysis of Toyota Motor highlights the company's prevalent internal Strengths and Weaknesses, external Opportunities and Threats.
• Understanding the role of technology and the company's core competencies in shaping Toyota Motor's business and presenting the company with a competitive advantage over its competitors
• The PESTLE/ PESTEL/ STEEPL Analysis for in-depth analysis of all external factors specifically, political, economic, social, technological, legal and environmental and highlighting their impact on the automobile industry and particularly on Toyota Group.
• Renders holistic information about Toyota’s mergers and acquisitions, strategic partnerships and alliances, capital raising, market value, market segmentation, and equity transactions, consented with deal valuations and the synergies that were achieved with them.
• Penetrations into Toyota’s business diversification, deriving its key business segments and elaborate upon its business case study
• Cognizance of current trends of the automobile industry and its influences on the Toyota Motor company
• A brief overview of Toyota’s founders, headquarters, turnover, revenue, and subsidiaries. followed by a comprehensive company analysis to gain knowledge about company information, company profile, business model, business plans and marketing strategy
• Evaluation of Toyota’s USP or unique selling proposition, mission statement, and vision statement
• Synopsis of Toyota's business model, business case study along with a peek into the company’s key performance indicators, value proposition, and success factors.
References used in Toyota Motor Analysis Report

1. Toyota Motor Annual Report 2018 -

2. Toyota Motor Financial Summary 2018 -

3. Official Toyota Motor Website -

4. Toyota says no-deal Brexit could halt UK production -

5. Toyota still No. 1, Mercedes passes BMW for No. 2 in ranking of most valuable car brands -

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Toyota Motor SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & (2021). Toyota Motor SWOT & PESTLE Analysis - SWOT & [online] Available at: [Accessed 01 Mar, 2021].

In-text: (SWOT &, 2021)

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Toyota Motor SWOT and PESTLE 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 and Disclaimer for usage guidelines.

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