Strategic Management at Toyota Motor Corporation - Essay Example

? MGT499 - Strategic Management Module 3 Case- Internal Analysis and SWOT Introduction The following paper will focus at Toyota Motor Corporation in general. It will also be looking at the internal analysis and SWOT of the Toyota Motor Corporation and how they use these findings to improve on their business. This paper will be written using all the secondary data that are available as resources. The secondary data will include; the online articles, research papers and books and the information gathered will be used to make recommendations according to the analysis and findings. Toyota Motor Corporation Toyota Motor Corporation is a company that is leading globally in manufacturing and sales, in the automobile industry. Its main aim is to make better cars and be able to contribute to the society at large. Toyota Motor Corporations is committed to considering the customer first by manufacturing vehicles that are of high quality and those that are of affordable price (Toyota Motor Corporation, 2009). Toyota Motor Corporations believe in a bigger and brighter automobile future. Their main objective is to try and understand the customers’ needs and be able to provide services and products according to these desires. Therefore, Toyota motor corporations is endeavored to pursue the right way forward, to be able to further their growth and make each stakeholder happy and satisfied(Toyota Motors Corporation, 2009). Internal analysis and SWOT Toyota Motor Corporation is termed as the largest manufacturing company of cars by production and sales in the automobile industry (Schmitt, 2010). It is also the largest manufacturing company in the US, and it is currently operating under five principles, which include; challenge, Kaizen, GenchiGenbutsu, respect, and teamwork (Toyota way, 2001). Despite all these, the Toyota Corporation is faced with strengths, weaknesses, threats, and tries to create opportunities to better their company, like any other in the world. Some of the strengths in the motor corporation include; being able to develop vehicles through innovative technology, and this has been achieved through putting more emphasis on the technological development, healthy corporate environment in which people are able to work and be taught at the same time. This is generalized as working together (Toyota Motor Corporation, 2009). Another strength, is that of tight integration of its group companies and this has helped them to contribute a lot on the economic growth of the nation, and are able to be the pioneers of the creation of a domestic automobile industry, they are also able to penetrate through the well-known markets including; (Japan, north America and US) (Toyota Motor Corporation, 2009). Apart from the strengths, Toyota Motor Corporation is experiencing some weaknesses within its industry and these include; criticism over large scale recall in 2005, the company was blamed for producing low quality products that lacked innovations. This criticism encouraged them to focus more on designing more innovative cars so as to cater for the customers’ needs. They have gone ahead to make the latest models of primus and hybrid cars, keeping in mind the customers’ satisfaction (Takahashi, 2010). According to Armstrong and Kotler (2002), to be able to manufacture products that are of high quality with stable prices without putting pressure on the competitors will earn the company, a customer’s loyalty, and this is evident in Toyota Motor Corporation. Toyota Motor Corporation is also faced with the weakness of foreign importation by the Japanese industry, and the company has strived to conquer this problem by producing low priced products in exchange of high quality products (Toyota Motor Corporation, 2009). Toyota Motor Corporation is also faced with the problem of global inefficiency; this means that it is only offering its brands to Japan and US while other competitors offer their brands globally. Therefore, to be able to curb this problem the Toyota Motor Corporation is currently using the product differentiation strategies to be able to penetrate the various markets in the world (porter, 1980). It has gone further to develop products and services that have offered unique services to the customers unlike its competitors and are also utilizing the low price strategies on its products, and this has been achieved by using lesser assembly lines for its products so as to minimize the costs that come with it (porter, 1980). Toyota Motor corporations has created opportunities that will help them stand a better position in the competitive world than before, and some of these opportunities include; establishing a strong presence that is defined by distinct, in Europe, strengthening products characteristics and variations in Japan and developing new concept cars. This will help anticipate customers’ needs, strengthen local roots and be able to aim for absolute self-efficiency in both developmental and production, in North America. Also, other opportunities include establishing new models that will help the company view things from the customers point of view and grow their business by introducing competitive models, which will meet people’s needs in a timely manner. Lastly, develop products that can rank alongside the innovative international multipurpose vehicles (Toyota motor Corporations, 2009). The automotive industry is also faced with some threats, and one of the threats is that of global crisis. This crisis profoundly affects this industry (Edwards, 2008). The automotive industry like the Toyota Motor Corporation will try to capture this threat by manufacturing products that are customer friendly and also offer employment to individuals (Flint, 2010). There is also the threat of substitute products in the business market such as bikes, cycles, buses and trains. These substitutes will be a threat depending on the geographical location of the industry. Toyota Motor Corporations has tried to place its industries in areas with a large population and mainly focuses in urban centers (Toyota, 2011). There is also intensive rivalry among competitors because the products produced by the automotive industries are not of much difference, and this is because there are not many opportunities available in the market for differentiation, but The Toyota motor corporations have come up with differentiation strategies that have helped the company fight this threat (Toyota, 2011). Lastly, the bargaining power of buyers in the automotive industry is becoming a serious threat. This is because buyers are able to shop for any from any manufacturer and; therefore, these industries are forced to make their buyers happy and satisfied to maximize their profits (Toyota, 2011). This is evidently seen in Toyota Motor Corporation as a manufacturing industry. Recommendations Toyota Motor corporations should mainly focus on expanding its business globally and for this reason; it should be able to penetrate the furthest places of china and Europe to gain an advantage, which will be of significant benefit to the industry. The company should also be cautious against its competitors and should use its strategies of differentiation, to face the intense completion in the market. Toyota Motor Corporation should also strategize itself in franchising which help it penetrate the markets. Toyota motor corporations should use its human resources department to ensure that its employees and workforce are valued, and this will enable the company attain its goals and objectives. Motivation needs to be encouraged in the automotive industries, and this can simply be done through reward and recognition systems that need to be put in place. Also, the employees need to undergo training, and they also need to be educated on the changes in technologies and trends, in business market. Toyota corporations should provide an environment for communications within its offices at various levels, and this will help improve employee and employer relationship. Lesson learned Toyota Motor Corporations are the largest and first in automotive manufacturing and sales. It is well aware of its customers’ needs; hence, they can deliver services and products, which will address these needs. These will in the end make the customer happy and content with the products, which then create a sense of loyalty among its customers. Toyota Motor Corporation in also sensitive to the culture of individuals and; therefore, it is flexible to changes, and it is a reliable company. References Armstrong, G. and Kotler, P. (2002). Marketing an introduction (International edition). New Jersey: Prentice Hall. DataStream, (2009). US auto carmakers. Retrieved May 2, 2012, from http://datastream.com. Edward, J. G. (2008). Auto industry's collapse feared. Las Vegas review Journal retrieved May 2, 2012, from http://www.lvrj.com/business/34451274.html. Flint, J. (2010). Is the Auto Industry Saving the Economy? Retrieved May 2, 2012, from http://www.forbes.com/2010/02/11/flint-autos-manufacturing-business-toyota.html Porter, M, E. (1980).Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Simon & Schuster Inc. Schmitt, B. (2010). TTAC Announces The Top 3 Automakers Of 2010, The Truth About Cars. Retrieved May 2, 2012, from http://www.thetruthaboutcars.com/2011/01/ttac-announces the-top-3-automakers-of-2010-now-with-official-numbers. Takahashi, Y. and Linebaugh, K. (2008).Toyota Sees First Loss in 70 Years. Wall Street Journal. Vol. 1, pp.22. Toyota Motor Corporation Environmental & Social Report (2004).The Toyota Way. Retrieved May, 2 2012, from, http://www.personal.umich.edu/~mrother/Materials_to_Download_files/The%20Toyota%20Wa y%202001. df Toyota Motor Corporation. (2011).Company Profile, Retrieved May 2, 2012, from http://www.toyota-global.com/company/profile/ Toyota motor Corporation annual report (2009). The better way forward. Retrieved May 2, 2012, from, http://www.toyotaglobal.com/investors/ir_library/annual/pdf/2009/pdf/p10_16.pdf Read More