Toyota Case study Analysis

Aishath Amaany

AnsOff Matrix
Market penetration make cars more interesting and fun open more outlets for wider demand acquire market share by acquisition with smaller competitors Market development re-design the products to make it more satisfying for customers produce low priced cars for middle class customers eg: Indian customers target the emerging markets (eg: BRIC nations) Make market share as 50-50 for industrialized nations and emerging markets Product development produce more eco-friendly hybrid cars

Diversification enter into new businesses such as household and financing segment Smart communities which uses eco friendly products

Swot Analysis Of Toyota

STRENGTHS
Toyota is the worlds largest vehicle manufacturer by production and

sales
Toyota is one of the biggest conglomerates of the globe Toyota is best known as for its Quality, reliability, durability, value for

money, convenient and environment friendliness

In 1997 Toyota started producing worlds first hybrid car- Prius The principles of Toyota about its continuous improvement and

respect for the people

Strong presence in Europe Strong distribution and market efforts focused on high quality and

sales and close involvement with customers

It has initiated new technologies

Weakneses
From the last quarter of 2009 and first quarter of 2010 it recalled

more than 8 million cars globally

TMC is criticized as a foreign importer by Japanese local car

producers
It was badly hit by the 2008 recession and declared its first loss in 70

years history
In 2009 Toyota reported a record yearly net loss of US$4.2 billion In 2005 Toyota was criticized for large scale re-call and quality issues Toyota offers most of its products an Japan and America where

competitors get global efficiency

Opportunities
Recovery of auto industries: The market will reach a volume of 129.9

million units in 2013.

Hybrid electric vehicles Opportunities in Asian market Government of China reduced the automotive taxes in order to

support declining sales

North American consumers shifted to more fuel efficient higher

quality of European and Japanese automakers

In 2009 State Bank of India decreased the interests on automotive

bank loans

Threats
Competition in the global automotive market Tightening emission standards The financial meltdown resulted in liquidity deficit in the US banking

system which decreased consumer wealth

Environment regulations Adverse impact of fluctuations in foreign currency conversion rates Market saturation maintenance costs of vehicles, rising fuel price and changing

customer preference are challenging threats.

Porters Five Forces