Swot Analysis Of Toyota

Introduction

There is an old cliché that states, “What goes up must come down.” That is certainly what happened to the trusted automobile company Toyota. The once famous, “ I love what you do for me, Toyota: motto that carried value in its brand such as quality, reliability and the passion for consumer happiness has evaporated into thin air as a result of Toyota’s biggest recall of vehicles within the United States in the years of 2009-2010. Birthed in 1937 by Kiichiro Toyoda, Toyota became an automobile manufacturing company (Parker, 2016). He built Toyota on the philosophy that in order to produce exponential growth to the manufacturer, you have to win the trust of the customer first with the dealer following closely behind (Parker, 2016).

To fully understand the issue(s) Toyota faces, you must get a snapshot of what the organization excels in as well as weaknesses and opportunities they currently have. These all can be achieved through the use of a SWOT (strength, weakness, opportunity and threats) analysis.

SWOT Analysis

Strengths

Evens after countless back to back recalls, Toyota still has cutting edge advantages that allows them to maintain their position as one of the leading automobile producers globally. Toyota’s cutting edge strengths include:

• Strong focus on research and development

Toyota is notorious for its state of the art pioneering culture. Their focus involves always being ahead of the competition but this requires funds for research and development. This is achieved through having more than 10 research facilities located in 8 different countries. The research division focuses on 3 areas which comprise of basic research, forward-looking and leading-edge technology development and product development (Jurevicius, 2016). Up to date, Volkswagen Group spends the most funds on research and development with Toyota following