Toyota Swot Analysis

Strengths

• A Motivated and extremely productive work force.

• Low cost, high quality factory operations guided by just in time.

• Long-term partnerships with suppliers.

• Careful market research and short design to show room cycles so as to keep models closely aligned with market demand.

• Custom order production and superior customer service.

• Being the undisputed quality leader in automotive manufacturing.

• Having outstanding labor relations.

• Informal contact among employees at all levels of the company.

• Strong employment relationship.

• Every worker is adding value to the car.

• Long-term relationship with supplier.

Weaknesses

• Less market share as compare to General Motors and Ford

• Customers not segmented

• Production operation not very good as the product needs to be reworked

• Customers are not being involved in the process

• Limited Research and Development done as compare to competitors

• High level of responsibility on employees shoulders

• Lack of flexibility in the company

• Lack of a proper sales force

• Few layers in Organizational hierarchy, resulting in less opportunity for promotions.

• Continuous stress on employees due to kaizen (Continuous improvement).

Opportunities

• The government pursued two major initiatives to promote automobile self-sufficiency in the quasi-closed economy. First, the ministry of international trade and industry limited imports to about 1 % of the Japanese market. Second, a plan was proposed to “rationalize” the auto industry through mergers and specialization.

• Additional government measures to strengthen and protect the ability of the industry to compete included protective tariffs, restrictions on foreign capital participation and loans, accelerated depreciation, special import arrangements for machinery and technology, and long term, low interest loans for the auto parts industry.

• Quota imposed by US government is beneficial for Toyota in the...