Discuss about the Introduction to Marketing for Toyota SWOT Analysis.
Toyota is considered as a leader in manufacturing and production industry. The company enhances its profitability by taking into consideration effective manufacturing approaches like total quality management. It is one of the first movers in the field of car research and development. It has a strong international position in 170 countries globally. The industry has a good brand image in the market that is based on quality and also it carries a customized range of products. The company has an excellent penetration in the markets like US and china and it is the second largest car manufacturer globally. As the company carries a good brand image in the market, it is easy to achieve the goals and objectives. The company has a good workforce that is a great advantage to expand its operations in an effective manner (Elnaga and Imran, 2014).
Every organization carries some weakness. By taking into consideration the Toyota industry it is seen that the production of the cars are done in US and Japan. The Japanese car manufacturing has a very less profitability that gives direct reflection of the financial segment of the organization. The company gives post-retirement benefits to its employees by which the extra expense arises on the company. By manufacturing the product in US and Japan it is analyzed that company suffers from an economic and political condition of the country that gives direct impact on the operations of the organization (Debnath, 2015).So, company is trying to enter into the new market by considering all these factors. Due to enhancement in the fluctuation rate related with exchange the sales are affected of the company. The competitors avail the advantage of the locations where the company is not present to conduct its manufacturing operations. In many cases the dealer moves away from the principles and actions that give negative outcome and enhances the complaints from the customers (Moeuf, Tamayo, Lamouri, Pellerin and Lelievre, 2016).
Opportunities are many in the market, but the right step is needed by the company to attain the opportunities that are prevailing in the market. Due to an increase in the gas prices of the hybrid cars the product of the company is now preferred more by the consumers. The latest technology that is adopted by the company also helps to attain new techniques related with efficiency of fuel system. The company gives main focus on the youth market by launching special and attractive models like Aygo which is one of the most popular convertible cars liked by the youth. The company also developed new cars which are beneficial for the customer in term of fuel efficiency and also that gives less impact on the environment. The expansion is taken into consideration by the company in which the new segments are introduced in the market by the company. In the merging market the company attained global expansion that has given positive impact on the working pattern. The taste of the client keep on changing, so the company should give main focus on attracting the customers towards the organization, so that the profitability can be enhanced in a proper manner (Sisson and Elshennawy, 2015).
Due to the decrease in the economic condition of the world and the competition in the market has enhanced the threats for the company. The company faces high level of competition in the market. To compete in the market the company should adopt effective marketing strategies so that the goals and objectives can be attained in an effective manner. The company faced decrease in the economies related with US and Europe. The economic factors are considered as a main threat to the organization. Due to exchange fluctuation rate it is seen that the raw material and profit cost is affected. The company faces a threat from the companies like Honda (Jayamaha, Wagner, Grigg, Campbell-Allen and Harvie, 2014).To compete in the market the company has taken into consideration the cost of steel and also the raw material that has impacted the cutting cost of production and manufacturing without affecting the quality of the products. The main threat is also related with change in the demographics pattern like large families are reducing so the demands for the large family cars are also reducing. The price of the oil or the cost incurred in maintaining the cars is also increased. Also there are many families who adopted the decision of not purchasing a car or decided to use the car on special occasion. So, to minimize the threats the proper strategies should be taken into consideration by the company, so that the goals and objectives can be attained (Jeong and Ko, 2016).
Elnaga, A.A. and Imran, A., 2014. The impact of employee empowerment on job satisfaction: theoretical study. American journal of research communication, 2(1), pp.13-26.
Debnath, S.C., 2015. Environmental regulations become restriction or a cause for innovation–a case study of Toyota Prius and Nissan Leaf. Procedia-Social and Behavioral Sciences, 195, pp.324-333.
Moeuf, A., Tamayo, S., Lamouri, S., Pellerin, R. and Lelievre, A., 2016. Strengths and weaknesses of small and medium sized enterprises regarding the implementation of lean manufacturing. IFAC-PapersOnLine, 49(12), pp.71-76.
Jeong, H.J. and Ko, Y., 2016. Configuring an alliance portfolio for eco-friendly innovation in the car industry: Hyundai and Toyota. Journal of Open Innovation: Technology, Market, and Complexity, 2(1), p.24.
Sisson, J. and Elshennawy, A., 2015. Achieving success with Lean: An analysis of key factors in Lean transformation at Toyota and beyond. International Journal of Lean six sigma, 6(3), pp.263-280.
Jayamaha, N.P., Wagner, J.P., Grigg, N.P., Campbell-Allen, N.M. and Harvie, W., 2014. Testing a theoretical model underlying the ‘Toyota Way’–an empirical study involving a large global sample of Toyota facilities. International Journal of Production Research, 52(14), pp.4332-4350.