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Swot Analysis

Toyota faced several strengths, weaknesses, opportunities, and threats in international marketing. Some strengths included strong leadership from Akio Toyoda that reenergized the company, a focus on quality, and quick response to recalls. However, weaknesses included a bureaucratic decision-making structure and reluctance to delegate authority abroad. Opportunities for Toyota included expanding hybrid models and improving management agility. Major threats were the global recession, safety recalls that damaged Toyota's reputation for quality, and natural disasters like tsunamis that disrupted supply chains.

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208 views

Swot Analysis

Toyota faced several strengths, weaknesses, opportunities, and threats in international marketing. Some strengths included strong leadership from Akio Toyoda that reenergized the company, a focus on quality, and quick response to recalls. However, weaknesses included a bureaucratic decision-making structure and reluctance to delegate authority abroad. Opportunities for Toyota included expanding hybrid models and improving management agility. Major threats were the global recession, safety recalls that damaged Toyota's reputation for quality, and natural disasters like tsunamis that disrupted supply chains.

Uploaded by

Shahida
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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P5508 International Marketing (SWOT Analysis & Marketing Mix)

SWOT ANALYSIS
Helpful Harmful (to achieve the objectives) (to achieve the objectives) External origin Internal origin (attributions of (attributions of the environment) the organization)

Strengths

Weakness

Opportunities

Threats

Strengths

Weakness Opportunities

Threats

: Characteristics of business or advantage : Business limitation or disadvantage : External chances to improve performance in the environment. Eg : make profit. : External elements in the environment that could cause trouble for business.

Strengths of Toyota
Toyota had coped remarkably well with the tsunami and that the recall crisis had served as a wake-up call for a company grown complacent. With a big boost from its new presidents, Akio Toyoda who took an intensely personal interest in its products, it was connecting with customer again. Akio has reenergized the company. He promised to be the closest president ever to the gemba; where the real work is happening. Toyota guiding principles in times of crisis is genchi genbutsu or go & see. Toyota began to develop quicker reflexes. When a defect was identified in a Lexus SUV, Toyota organized a recall in just 8 days. Akio assembled general managers of departments such as body engineering and powertrain in Japan and took the unusual step of instructing them to restore production and not waste tome reporting upward. Toyota solved the problems of parts in half the time expected.

Strengths of Toyota
Two major pillar how he manages ; first, be fast. Second, be flexible. Akio shrank the board of directors by half and took out layers of management. He work closely with his top advisors, know as pit work so that they can move quickly. Toyota has related its top executives, so a sales specialist could be assigned to purchasing, or a product engineer to manufacturing. Now they stay within their specialities so that they can leverage their experience. Toyota has stepped out their efforts emphasizing design, high quality of the interiors to make their product more attractive.

Weakness of Toyota
Every decision was tightly controlled in Japan; the US was treated like a vassal state. When American managers found defects in vehicles, they had to follow a tortuous bureaucratic process to register their complaints in Japan, where they were often met with skepticism and defensiveness as it had long feared, Toyota had succumbed to big-company disease. Balked at delegating more executive authority to America rather than designate one person to head all of its North American operations, it maintained its traditional silo structure. Its giant sales operation in Southern California and its equally large manufacturing complex headquartered in Kentucky, continued reporting to different executives in Japan. Akio has pledged to maintain a manufacturing base in Japan with a capacity of 3 million cars to protect parts makers and its skilled-labor supply, but Funo said that number is not carved in stone and that Toyota may shift more production to the US.

Opportunites of Toyota
Toyota cars were regaining their reputation for quality and value with 19 new and redesign models coming in 2012 calendar, - an exceptionally large number including a big expansion of the Prius hybrid line, the Toyota steamroller seemed ready to regain its old momentum. Toyota realized the need for a certain level of top down to more quickly in management style to avoid the slow down the pace of decision making. Toyota agreed to buy $60 million worth of Tesla batteries to power its allelectric RAV 4 crossover.

Threats of Toyota
Sales slips, floods delay, shopper strays, deadly tsunami, massive recalls. Global recession. Auto production plummeted ; Toyota lost its most important competitive advantage : its reputation for exceptional quality. Ignited by reports of horrific accidents, some fatal, caused by cars that ran out of control and couldnt be braked to a step, it eventually involved the recall more than 8 million Toyotas and Lexuses ; investigations turned up no mechanical or electronic defects only some misplaced driver error but exposed major flaws in the corporate culture. Consumer confidence in its cars plummeted and Toyotas higher-ups were shaken. Tsunami damaged plants in the north of Japan, disrupting the supply of over 500 parts and Toyota couldnt find replacements. Currency imbalance threatens the future shape of the company.

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