TOYOTA MOTORS SFAS ANALYSIS
| SWOT # | FACTORS | WEIGHT | RATING | WGTD SCORE | COMMENTS |
| S1 | Devoted and Viable Employees and Supplier Network | .15 | 4.5 | .675 | It’s large, devoted and sustainable employee and supplier network, which has made it survive economic turbulent. |
| S2 | Rational Capital and a Diversified Market | .15 | 3.4 | .51 | Toyota has a rational capital and a diversified market that is used as an advantage |
| S3 | Strong Research & Development Unit and Marketing Base | .15 | 3.1 | .465 | There is no doubt that the company is coming with innovative eco-friendly products, but still, it is far behind than its competitors such Tesla. |
| W1 | Geo-position Disadvantages | .05 | 2.5 | .125 | Toyota has gone through a financial crisis due to political instabilities in some of the countries it operates its manufacturing facilities (Kotabe & Murray, 2004) |
| W2 | Shrinking market share in the growing market | .05 | 3.0 | .15 | Ineffective vehicles have made Toyota lose advantage to its competitors. |
| O1 | Clean/Green Technologies | .15 | 3.4 | .51 | This will be fuel efficient and eco-friendly cars that are becoming popular and will significantly improve Toyota’s brand image. |
| O2 | Increasing demand of compact cars | .15 | 3.7 | .555 | Toyota’s products are known for its quality and innovation. This gives the benefit of an increase in demand for its products. |
| T1 | Japanese Yen- US Dollar exchange rates | .05 | 2.5 | .125 | Toyota needs to shift some of its manufacturing processes to other countries which are less influenced by the Yen fluctuation. |
| T2 | Competition from other players in the Growing Market | .05 | 3.1 | .155 | Toyota needs to counter aggression from its rivals by offering innovative and consumer-oriented products to its customers (Nkomo, 2013) |
| T3 | Financial slowdown | .05 | 2.5 | .125 | Economic slowdown across the world have impacted demand and sales in automotive industry |
| TOTAL SCORES | 1.00 | 3.395 |
TOYOTA MOTORS TOWS ANALYSIS
| TOYOTA MOTORS TOWS ANALYSIS | ||
| Internal Factors External Factors | Strengths (S) S1: Devoted and Viable Employees and Supplier Network S2: Rational Capital and a Diversified Market | Weaknesses (W) W1: Geo-position Disadvantages W2: Shrinking market share in the growing market |
| Opportunities (O) O1: Clean/Green Technologies O2: Increasing demand of compact cars | SO Strategies S1/O1– Toyota should use its vast workforce to develop cheaper eco-friendly vehicles for the new market (Sperling & Gordon, 2009). This will help Toyota to increase its market share S2/O2– Toyota should use its intellectual capital to meet the increasing demand for compact cars around the world. The capital should be channeled into investments of manufacturing plants abroad. | WO Strategies W2/O2- The increasing demand for the compact cars will see Toyota increase its market share. The demand of such cars across Europe and some African countries should be an advantage to Toyota in increasing its market share. |
| Threats (T) T1: Japanese Yen- US Dollar exchange rates T2: Competition from other players in the Growing Market | ST Strategies S2/T2- With stiff competition in the market, Toyota has to use its diversified market to set itself as a major shareholder of the market S2/T2– Toyota’s capital should be focused onto research and developments of innovative products. This will ensure that there is a variety of products that the customers can choose from. | WT Strategies W1/T2– Toyota should consider shifting some of its operations and manufacturing processes to other countries which are less influenced by the Yen fluctuation. W2/T2- Toyota should consider offering innovative and consumer-oriented products to its customers to counter its rivals and claim parts of the market share. |
References
Kotabe, M., & Murray, J. Y. (2004). Global sourcing strategy and sustainable competitive advantage. Industrial marketing management, 33(1), 7-14.
Nkomo, T. (2013). Analysis of Toyota Motor Corporation.
Sperling, D., & Gordon, D. (2009). Two billion cars: driving toward sustainability. Oxford University Press.
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