Swot Analysis Of Toyota 's Strategic Management

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HToyota is a company with excellent strategic management and has since the last two decades rise to a level of dominance in the auto-motive industry. Toyota is headquartered in Tokyo, Japan and is the largest producers of automobile in Japan as well as the second largest in the world. Toyota has aimed in produce similar quality products as its competitors but at a lower cost which has been the basis of its strategy. Theories of strategies are continuously utilized by Toyota, which has lead the company to be the cost and strategy leader it is today. Strategy can be defined as, long term direction and scope of an organization in order to gain a competitive advantage. As such is ca be said that Toyota is operating with strategy at the core of the business which has helped the business to realize a competitive advantage in the industry. There are many theories of strategy utilized in the operation of Toyota such as Resource based theory, behavioural role theory as well as human capital theory.
Resource based theory is a great basis of competitive advantage in a firm, this is the resources that are rare and non-substitutable. It also highlights the importance of a company’s resources and capabilities. Possession of these strategic resources as led companies such as Toyota to dominate its market and increase profitability. When a resource helps a firm to capitalize on opportunities and deflect threats, then it is said to be valuable. Toyota culture fits this well, employees
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