Strengths:
Toyota’s strengths lie in the fact that their assembly line is time efficient and the use of in time inventory control. Toyota does not have unwanted costs, like for example GM’s “legacy cost” which otherwise would decrease its profits and future investments. Toyota also achieves economies of scale which plays a big role in large industries especially when the average cost increases with the increase of production. Just in time production and the concept of building quality directly into the process are Toyota’s major strengths. Toyota’s production lines include the use of highly innovative technology which finds any faults and fixes them before the actual production begins. This allows them to enhance their product quality and efficiency.
Weaknesses:
Unlike the “Big Three” automakers Toyota does not assemble all of its vehicles that are offered to the North American market. This could be a down factor in consumers mind when selecting what vehicles to purchase since it does not contribute as much as to the economy as the other automakers does.
Opportunities:
In order to achieve future success Toyota should constantly look for upcoming new trends so that it can design products accordingly so it would be able to satisfy the needs of future customers. It should also focus on establishing and increasing its market shares in emerging countries. In established markets such as North America and Japan, its strategy should be emphasizing on products that are environmental friendly and are more appealing to younger generation. Toyota should also take advantage of its struggling rivals to gain more market share.
Threats:
Toyota should never ignore the potential of its rivals, although currently the “Big Three” automakers are reporting substantial loss of revenue due to their unorganized company structure and mismanaged management. It should never