Strategic Management: Internal Analysis and SWOT

Strategic Management: Internal Analysis and SWOT

Introduction

Toyota is one of the largest automakers with operations spread around the globe. Initially, Toyota started its operations from Japan. Nonetheless, currently the organization has acquired substantial market share in the markets dispersed around the world. Toyota acknowledges the revenues generated from more than 7 million vehicles sold in different markets segments targeting variety of consumers. Outside Japan, Toyota has begun to conquer foreign markets in the 1950s. The first Toyota Crown models arrive in the United States in 1957, and by 1965, the company will forged a reputation for quality, service and customer satisfaction, particularly through models car like the Toyota Corolla, which will enable it to compete with car manufacturers nationals.

In 2004, annual sales of Toyota vehicles in the United States will exceed 2 million, including 1.4 million vehicles and nearly 1.36 million engines manufactured in the United States. The first European imports made in Denmark in 1963 and since that date, the company has grown steadily in the market for sophisticated and complex motor Europe (Toyota, 2012). In 2006, Toyota has shipped its 15 millionth vehicle in Europe and achieved sales figures record for the tenth consecutive year. Toyota has adopted a policy of locating its vehicle production to meet the specific and varied needs of European customers (Toyota, 2012). The company's operations in Europe - whether in production, research and development or marketing are generally located in the heart of the communities where continues its development.

Strengths of the Company

Strong Market Position

Toyota Industries has a significant market position in lift truck business in Japan and North America, in FY2011. For instance, Toyota Material Handling Japan (TMHJ) worked to expand sales to the manufacturing industry, which has shown an upturn in capital investment, including the transportation equipment sector. In addition, the company also strengthened sales to other robust businesses such as the transportation and warehousing industries (Investopedia, 2011). Reflecting these efforts, unit sales of lift trucks increased 15% year-on-year in FY2011 to 26,000 units.

As a result, TMHJ secured a 43% share of the Japanese market in 2010 and maintained its top position for the 45th consecutive year. Toyota successfully introduced the domain responsible for the supply of lift trucks and remained the market share leader in North America for the ninth consecutive year. A robust market position helps the company to maintain an edge over its competitors and also enables it to have economies of scale.

Strategic Global Presence

The company has enhanced its presence into various business categories thus proving to have strong engineering capabilities. During its inception in 1926, the company manufactured automatic looms for use in the textiles industry. Gradually it leveraged its engineering capabilities to manufacture more complex textile machinery, automobiles, materials handling equipment, electronics, and logistics solutions. Currently the company engineers and manufactures automobile engines (diesel and gasoline engines), car air-conditioning compressors, and automobile assembly operations. It manufactures passenger cars such as Vitz and RAV4, industrial vehicles such as forklift trucks, and automatic guide vehicles (Hitokoto, ...