SWOT of Toyota

3. Major Strategic Problem
• Price of steel and other raw materials continue
to rise, while fossil fuels becomes more scarce
• The high prices of raw materials and strong
pressure on Toyota’s suppliers could
negatively impact Toyota’s profitability

4. External Analysis
• General Environment Threats
– Government Regulation
– Political instability, fuel shortages, terrorism, war,
labor strikes
• Specific Environment Threats
– Highly competitive industry
– Rising prices of raw materials
• Opportunities
– Market demands fuel efficient vehicles

5. Internal Analysis
• Strengths
– Global organization with strong international
position
• Growth opportunities in developing markets
– Strong brand image based on quality,
environmental friendly (green)
– Management & Kaizen Culture
• Continuous Improvement

6. Strong brand image based on quality
& environmentally friendly image

8. Global organization with strong
international position

9. Corporate Management & the Kaizen
Culture
Toyota’s Management
system enables the
Managers to make decisions
directly with on-site
operations by reflecting on-
site personnel opinions on
management strategy and
swiftly implementing
management
decisions into actual
operations.
Kaizen: Philosophy & Culture of Continuous Improvement

10. Toyota’s Plans to Improve Future
Earnings
Short-term Measures
• Enhance the development of our environmentally
friendly products
– Further expand product line-up in each region
1. “Maximizing Our Revenues”
• Develop a new product line-up which responds to..
• the customers’ requirements in each region
• friendly vehicles, such as hybrid vehicles
• Strengthen product line-up in
• resource-rich and emerging countries

11. Toyota’s Plans to Improve Future
Earnings
• 2. “Reducing Costs Across the
Board”
• Reduce 10% in Fixed Costs
Build a structure that promotes
efficiency
• Cancel or postpone our
plans to build new
plants and expand
production capacity
• Maximize use of our
existing production
capacity
Achieve further Cost Reduction
• R&D and Marketing
Expenses: Prioritize
allocation of resources
into the environmental
sector
• Labor Costs:
Implement adequate
measures that are
considerate to
employees