SWOT Analysis of Toyota Motor Corporation


Toyota’s strengths are internal factors that help Toyota maintain its continued success in the vehicle industry. First, Toyota company has a very large and strong stock performance, which enables it to have a steady market flow. It also produces the most reliable and economical vehicles, making them attractive to consumers and a top priority to conscious buyers. The Toyota company also has a set of principles in carrying out its operations within the industry. This set of principles being adhered to has increased production and has strongly encouraged innovations in the company. The company is also pursuing the vision of the automobile company in the production of zero-emission vehicles. They have been competent in producing hydrogen fuel cells and electric vehicles, which have put them in a very strong position in the zero-emission market. The company is also focused on improving its technology in developing batteries for its electric vehicles, a fast-charging battery, and draining power at a very slow rate.


The SWOT analysis looks at weaknesses as the internal factors that impact the growth of a company or an organization. The major weakness of the Toyota company has been recalls despite the high standard in quality control and in its productivity. This recalls leads to losses and wastage of resources affecting the growth of the company. Strikes by employees in the company have also been another weakness because when the employers go on a strike the company will face a low production rate affecting the company’s output to the market and causing losses. Another weakness is the technology gap that Toyota is facing compared to other modern automobile companies like Tesla which is said to be six years ahead of Toyota and other automobile companies in terms of technology. This technology gap can lead consumers to prefer the already advanced automobiles in technology other than buying from Toyota. Another weakness is the partial global market, most Toyota products are found in the United States, Japan, and Europe ruling out the African continent and the middle east. For Toyota to be a global company and experience growth in its sales it has to explore these continents otherwise its growth will remain stagnant because of the partial global market it has.


Opportunities in the SWOT analysis are all the external factors that will enable the growth of the Toyota company. One of these opportunities is the investment Toyota has put in place in the Japanese startup SkyDrive which conducted the first test on flying cars. Toyota has lots of hope that their investment in backing up the flying cars project will eventually pay off. Toyota has also invested in nanomaterials which have a wide range of applications like making vehicles lighter, stronger, cooler, durable, and safer. This opportunity will make Toyota a priority to the consumers because of the comfortability the nanomaterials will have created in the Toyota vehicles. Toyota has also been investing in smart cars, these cars will be made using top-level technology that will make it safer and more convenient for people who are not experienced enough or the old people. These opportunities will lead to the growth of the company and make it a top priority to consumers.


SWOT analysis defines the threat as an external factor that can stop progress. The major threat that Toyota is facing is stiff competition from other big automobile companies like Tesla and Volkswagen (Madoh et al., 2019). Tesla has been the major threat since it was stated as the most valued automaker and has a many times higher market cap than Toyota. Also, an increase in tariffs by European countries has been another threat since it has led to the maximization of profit that the company has been making in Europe which is one of the places it has a larger market. The economic crisis in one of the three countries that Toyota has invested strongly in could be a threat to the progress of the company because it would affect sales which will lead to the company suffering losses. The covid-19 restrictions being put in place by the governments so as to curb the spread of the virus has led to the economic recession that led to employers decreasing the number of their employees causing a lower rate of production.


Madoh, A., Alenazi, J., Alkhamees, L., and Panwar, A. (2019). Case Study on Market Mix Strategies of Toyota Motor Corporation. Asia Pacific Journal of Management and Education2(3), pp. 70-78.

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