Custom essays on Toyota’s strategy

Toyota company SWOT analysis:
Strengths:
– global organization of the company
– strong brand image based on quality, low price and customized range
– industry leader in manufacturing and production
– •diversified product range
– reputation for manufacturing environmentally friendly vehicles
Weaknesses:
– strong competition in the international markets
– – most products targeted to the US and Japan only
– – large-scale re-call in 2005, quality issues

Opportunities:
– Innovation: a mass-production of hybrid gas-electric vehicles ( Prius model)
– Toyota is to target the “urban youth” market with a new “Aygo”
– continued global expansion – in the emerging markets (China, India, Russia)
– shift in oil prices have increased sales of the new hybrid vehicles • Threats:
– competitive rivalry in the car market
– economy recession will affect car purchases
– shifts in the exchange rates affect profits and cost of raw materials
– change in demographics cause the decrease in demand for large family cars

Thus, we can conclude about the general direction of marketing strategy of Toyota, according to which no importance should be attached to short-term profit, preferring the successful development of the industry in term.
From the above we can make the following conclusions:
– The company constantly develops and strengthens its position at all available markets;
– Toyota offers the most favorable variations for customers, trying to make cars better and cheaper than competitors;
– The company does not seek to profit at unreasonably short time, and works to increase sales and improve quality while respecting policy of flexible prices.

Toyota today
Toyota has become the second-largest automaker in 2003, overtaking sales of Ford, and since then Toyota is going to become a of global leader. In the next years, Toyota may become the largest automaker in the world. The company’s management expects that in 2010 it will increase sales to 10 million vehicles, while the current leader – the U.S. General Motors is actively reducing production in an attempt to get out of the crisis. To reach such a number of sales by Japanese automaker expects to increase its share in emerging markets, including Brazil, India and Russia. According to mr. Watanabe, the company will continue to bet on a compact and efficient models. Watanabe said that Toyota intends to sell its fuel-efficient models for $ 6000, after analyzing models of competitors. (ToyoLand 2010)
Experts estimate that if projections are correct Toyota, the company will almost certainly come out on top of world sales.
Among the most important global initiatives of Toyota is introduction of new models, as in 2009 Toyota presented 18 new models of Toyota and Lexus (11 of them were hybrids). (ToyoLand 2010)
In the near future the company will present 11 new hybrid models, like the new generation Toyota Prius that was presented at the Auto Show in Detroit in 2009. Production of electrical batteries is the main key automotive technologies of the future, and production of small but powerful hybrid cars –are another opportunities for the Toyota company in the future. (ToyoLand 2010)
The main thing in politics of Toyota – that it is always directed to the future. Engineers care about the environment, and continue to look for a way to produce affordable electric car, which will not differ in characteristics from a petrol car.

Works cited
Porter’s Generic Strategies (2010). Quick MBA. Web. 10 August 2010
Toyota history: Corporate and Automotive. ToyoLand 2010 . Web. 10 August 2010
Competitive Advantage. Web. 10 August 2010