Toyota Motors Corporation, founded in 1937, is a leading automotive manufacturer known for its quality, safety, durability, and innovation. The company faces challenges including limited market presence in Asia and product recalls, while opportunities lie in expanding operations and focusing on electric and autonomous vehicles. The competitive automotive industry and rising operational costs present ongoing threats that Toyota must strategically navigate.

1. A Detailed Case Study
Analysis Of
Toyota

2. Brief Insights
• Toyota Motors Corporation is a leading
automotive manufacturer based out of Japan.
• The automobile company was founded in 28th
August, 1937.

3. Brief Insights
• As of December 2019, it is the tenth largest
company worldwide in terms of its revenue
structure.
• As of 2018, it is also the second largest
automobile manufacturer in the world.

4. Brief Insights
• The company offers automobile, commercial
and luxury vehicle, engines, etc.
• It’s one of the prominent companies to
advocate the mass market adoption of hybrid
electric cars.

5. Reasons Toyota Is Considered The
Most Trusted Brand
Quality:
For years, Toyota has been consistently providing
quality services and products to its consumers.
The brand is acknowledged for advanced
manufacturing techniques and top engineering
expertise.

6. Reasons Toyota is considered the
most trusted brand
Safety
Toyota’s unwavering dedication to safety can be
traced back to the company’s origins.
Toyota has won many of the IIHS Top Safety Pick
designations, and Toyota Safety Sense is available
on most of its vehicles.

7. Reasons Toyota is considered the
most trusted brand
Durability
It is said that 80% of Toyota cars sold in the last 20
years are still on the road. That kind of durability
indicates big long-term savings for the consumers.
Toyota has been synonymous for its durability
since its inception

8. Reasons Toyota Is Considered The
Most Trusted Brand
Innovation:
Toyota outdid itself with the launch of Prius, and
since then, the innovation has continued with
every model that Toyota puts out.
Toyota is an industry leader in the automobile
sector in terms of innovations.

9. The SWOT analysis of Toyota

10. Strengths
Diversified portfolio
Toyota comes with a large and diverse product
portfolio. Some of the varieties that the Toyota
offers are as follows-
 Sedans
 SUVs
 Hatchbacks
 Minivans
 Station wagon

11. Strengths
Focus on research and development
The company is deeply focused on research and
development. The brand is continuously investing
in growing its range of electric vehicles.
The brand is also investing in the development of
safe automated driving technology.

12. Strengths
Brand equity
Toyota has been able to develop strong brand
equity owing to the innovations they presented in
the automobile industry. The brand comes with
five sub-brands, which include-
 Toyota
 Hino
 Lexus
 Ranz
 Daihatsu

13. Strengths
Strong corporate structure
Toyota is blessed with a corporate structure that
includes a huge number of employees throughout
the world. They have invested in hiring resources,
and the return they receive is big.
As of 2019, they have approximately 370,870
skilled employees working for them worldwide.

14. Strengths
High production capability
Toyota is giving major competition to its
contemporaries on this point as they have a high
production capacity of producing cars, almost 10
million per year.

15. Strengths
Strong supply chain and distribution channel
Toyota boasts of a large and efficient supply chain
and distribution network. The company buys from
around 200 suppliers directly.
It has 172 main overseas distributors for the
distribution of its products across the world.

16. Weaknesses
Failing To Leverage The Asian Market
Despite presenting some remarkable vehicle
technologies, but it hasn’t been able to fully cater
to some parts of the overseas market, specifically
the Asian market.
Toyota falls behind in position in regions like India
and China as compared to its competitors.

17. Weaknesses
Product recalls
In the past couple of years, Toyota has recalled a
few of its products from the market, which
affected their brand image.
In 2017, Toyota was compelled to recall around
2.9 Million vehicles owing to the complaints of
faulty airbags.

18. Weaknesses
Negative Publicity
This happened mostly because of the vehicle
recalls. Such issues are generally considered as
major setbacks for any automobile company, and
Toyota is no exception.
Considering the recall rates for Toyota, it can
cause more negative publicity if the issue persists.

19. Weaknesses
Poor Brand Recognition
There are five different sub-brands of the
automobile company. However, out of these five
sub-brands, only Lexus and Toyota have been
successful in terms of brand recognition.

20. Opportunities
Expansion in other geographical locations
With the huge portfolio of products that Toyota
comes with, the brand definitely has the potential
to extend its operations in other developing
countries. Investing more in these regions will be
extremely beneficial for the brand.

21. Opportunities
Autonomous vehicle technology
This has become the prime objective of many
companies. Toyota is also a part of this trend.
The brand has invested nearly $1 Billion on
Artificial Intelligence and Robotics to turn the
dream of producing the first autonomous vehicle
into a reality.

22. Opportunities
Leveraging the consumer’s consciousness on
environment
People around the world are becoming more
conscious about environmental degradation and
are also willing to do their bit. This is the high
time to popularise Toyota’s environment-friendly
technology.

23. Opportunities
Hybrid and electric cars
The future of vehicles is electric, with rising
concerns over pollution and crude oil prices, the
need for electric cars is increasing.
Toyota should be looking on investing more in the
electric car segment as it presents a huge
opportunity for the brand.

24. Threats
Competitive pressure
Competition in the automotive industry is
increasing rapidly with different players fighting
tooth and nails to acquire the maximum market
share. So, it's one of the major threats that Toyota
has to consider.

25. Threats
Growing prices of raw materials and labour
The prices of labour and raw materials are
growing, which has resulted in high operational
costs in the automobile industry. This has
ultimately adversely impacted the profitability of
the automotive brand.

26. Conclusion
The brand needs to weigh down on all the
opportunities and threats and device the business
strategies accordingly.
This will lead to the success of the brand
worldwide and will also allow them to win the
hearts of its consumers across the globe.

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