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Toyota Motor Corporation: SWOT Analysis Of Toyota

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Toyota Motor Corporation (further Toyota) is the world’s leading automaker (often tied with Volkswagen for 1st-2nd place) based in Toyota City, Japan. In 2012, the company was the first automotive company to produce over 10 million vehicles in a single year.[1] The company operates 4 different brands: Daihatsu, Hino, Lexus and Toyota. Toyota’s brand is the world’s 5th most valuable brand in the world and the most valuable automotive brand, worth US $53.5 billion.[3] The main Toyota’s markets are Japan, United States and China, where the company sells over 50% of its vehicles. The company produces the best-selling hybrid vehicle Prius.[2] You can find more information about the business in Toyota's official website or Wikipedia’s article. SWOT Toyota SWOT analysis Strengths Weaknesses 1. Strong focus on research and development (R&D) 2. The …show more content…

3. Toyota Production System Toyota Production system or TPS is a manufacturing system developed by Toyota. The system’s philosophy is to ‘eliminate all waste from manufacturing process’. The system was based on Just-in Time concept. TPS has become very successful in allowing the company to increase production efficiency, decrease manufacturing time and simplify its processes. All of which resulted in lower costs and better quality vehicles. Figure 3. Toyota Production System Source: Lean Enterprise Institute[6] Due to the TPS, Toyota’s profit margin of 8.1% is the highest when compared to its largest competitors Volkswagen’s profit margin of 0% or General Motors’ profit margin of 6.4%. 4. Competence in hybrid vehicle production Toyota is heavily invested in its hybrid vehicle (HV) lineup and is betting its long-term future on HVs and electric

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