SWOT Analysis
Strengths
• Toyota, this very word is strength in its for Indus Motor company because of the excellent reputation Toyota Motor Corporation has made over the years since its inception. It is world’s first manufacturer to have built 10 million vehicles in one year (Journal, 2014). Being the fourteenth largest corporation worldwide, including numerous factories around the world, when it comes to valuing its employees, its customers, its stakeholders and steadfastness, the brand name “Toyota” speaks for itself. Toyota has been acknowledged for its successful great effort for innovation, ethics and moral. All of these aspects have without doubt helped IMC in conjunction with other essentials to figure its current shape. All the values such as QRD (Quality, Reliability and Durability) have been embedded into IMC corporate culture to make sure it lives the “Toyota Way” (IMC, 2013, p. 10).
• In Pakistan, the idea of CSR is more of an innovation, and IMC has been on the top for bringing this very idea to an entirely new geographical location. Sustainability is the most celebrated attribute for Toyota when it comes to CSR. As a consequence of being directly under this influence, IMC inculcates a thorough consideration towards customers, shareholders, business partners, employees, environment, laws and regulations, education and training, health sector and community as a whole. The purpose behind this is IMC’s Toyota inspired mindset, a development which is harmonious and sustainable not just for the society but for the earth (IMC, 2013, p. 49).
• Indus Motor Company has been awarded 8th Consumer Choice Award for the year 2012-2013 in the Category of Best Car (IMC, 2013, p. 51). Corolla is Pakistan’s number one choice for p...
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... to increase in the age limit of used cars, causing 24% decrease in demand of new cars (IMC, 2013, p. 31). Allowing smuggled cars was a big hit to local automotive industry of Pakistan thus IMC was under this unfavourable manipulation of damaging governmental steps.
• Unstable economy, deteriorating law and order situation, power shortage and political circumstances (IMC, 2013, p. 30) have adversely affected IMC’s performance and will continue to. Although IMC has been appreciated for handling such external feature to the best of its abilities yet lack of good governance attitude of government can ruthlessly ruin IMC’s future outlook as a successful company.
• IMC is currently faced by competitors who have a monopoly in Pakistan in automotive sector. Fierce competition is seen if we look at the market share of IMC in this industry as compared to other 2 giants.
Toyota recently announced it seeks to become a much more efficient and effective automobile manufacturer in the extremely competitive automobile industry. This particular
...horough looks at the 3 perspectives of Toyota, The Australian government or The Australian manufacturing workers union, it cannot be said that the closure of the manufacturing plant in Australia was the sole responsibility of any of the groups. Each played their unique role in providing setbacks and reinforcement. Unfortunately the collapse of Toyota and Australian car manufacturing was a result of factors that are out of the control of these three parties. The responsibility falls on the dramatic surge of the Australian dollar making exports less profitable as the demand decreases. Similarly the competition from regions of low labor cost and high demand growth were difficult to match. With recent years Globalisation and the fragmented and in turn competitive domestic market has led to the downturn and eventual collapse of the Australian car manufacturing Industry.
Many vehicle manufacturers have paid more attention on CSR to sustain their business development. Environmental management schemes, green supply chain management and labor codes of conduct are widely recognized and implemented within the industry (Martinuzzi et al., 2011). Automakers also rate it more important comparing to other factors of the company. For instance, the disclosure of the general movement of social and environmental accountability, according to the established opinion leaders in the automotive industry, is increasingly positioned at the forefront of any economy and business context (Russo-Spena et al.,
In 1937, the United States was still reeling from the Great Depression, George VI sat on the throne in England, the world was still two years away from the start of World War II, and in Japan the son of the “King of Japanese Inventors,” Sakichi Toyoda, was spinning off a new company from his father’s empire. The son, Kiichiro Toyoda, founded the Toyota Motor Corporation three years after it had created its first product, the Toyota A engine, and only one year after its first automobile, the Toyota AA. Today, Toyota is the largest auto maker in the world and the fourteenth largest company overall, while employing over 300,000 employees worldwide. The original Toyota cars sold in Japan were sold under the name “Toyopet,” which was in regards to the cars small size. Upon entering the U.S. market in the late 1950’s the name was changed to the now familiar Toyota. The reasoning behind this was the name Toyopet could potentially be associated with “toys” and “pets,” two things Toyota did not want. With the advent of harsher importing tariffs on vehicles in the 1960’s and 70’s, Toyota realized the only way to fully penetrate the American market was to begin building the cars here. They broke ground on the first wave of U.S. production plants in the early 80’s. 1982 saw the creation of the narrow bodied Camry model, and by 1989 they had launched Lexus, the luxury division of Toyota. Their first truck, the T100 hit the market in 1993 and in 1997 Toyota began production of what would become the best-selling hybrid car in the world, the Prius. The 2000s saw the company enter into Formula One racing, the release of the Tundra, and awards for the Camry, Prius, and Tundra. In 2005, Toyota was ranked eighth on Forbes list of the world’s leading ...
To begin with Toyota Motor Corporation’s market structure, we have to know that the automobile giant is an Oligopoly. Oligopoly means, “a market dominated by a small number of participants who are able to collectively exert control over supply and market prices” (Investorwords, 2013). The definition for market structure isThe interconnected characteristics of a market, such as the number and relative strength of buyers and sellers and degree of collusion among them, level and forms of competition, extent of product differentiation, and ease of entry into and exit from themarket(BusinessDictionary, 2013).The characteristic of oligopoly are few firms, moderate barrier to entry, price maker and so on. There are only few competitor of Toyota such as Honda, Nissan, Hyundai, KIA and Volkswagen. In addition, Toyota also is a price maker which they can easily make a decision to set a price without following the market price due to they have the largest proportion market share. Entry barriers help existing firms to exercise market control due to the government restrictions, copyright and patent issues. Thus, it is hard to develop a new car firm into the market (Mehta, 2013).In Malaysia, Toyota and two other brands Proton and Perodua control the automobile market. By looking at Figure 2., we can see that the market share of Toyota in 2011 is 15.1% according to Italia (2012). Toyota Motor Corporation is ranked 3rd on the market position with 15.1% which is relatively lower than the first two. Perodua is ranked 1st with 31.2%, followed by Proton with a market share of 26%. The competition for the top two spot seems hard for Toyota, however Toyota has a good advantage over the 4th rank brand, which is Honda with only 7.4% of the market
The Indian automotive industry has four noteworthy sections - commercial vehicles, passenger vehicles, three wheelers, and bikes. As per the Society of Indian Automobile Manufacturers (SIAM), the Indian automotive market has three sections - passenger vehicles, multi-purpose vehicles, and utility vehicles. It is then further sub-divided based on the length of the vehicle as segment A, B, C and so on. The Indian automotive industry was a very precautious and safeguarded industry with not very many companies till the economy opened in 1991. Liberalization of the Indian economy in 1991 and de-licensing of the passenger car industry in 1993 paved way for the entry of global players like Hyundai, Ford, General Motors, Toyota, Volkswagen, Daewoo,
India’s automobile industry is one of the key drivers that promote the economic growth of the country. Personal vehicle ownership in India is increasing at a fast pace as a result of rapid economic growth witnessed in the last two decades. The rise in disposable income (in both rural and urban sector), presence of a wide variety of options to choose from and availability of easy finance are the main drivers of automobile sales in India. The relative popularity of the various segments of vehicles based on their size, price and usage are also undergoing sea changes. Especially in a country like India where motorized and non-motorized informal transports are a major mode of travelling (along with public transport in bigger cities), a fast-paced shift towards private motorized transport is a substantial change. The post globalization period has witnessed the footprints of global automobile majors striding towards India to tap India’s highly potential vehicle market. With manufacturers fighting to capture the biggest slice of the pie in one of the fastest growing automotive markets in the world, the Indian consumer is being offered with extravagantly larger set of vehicles in
Toyota is one of the leading Japanese automobile manufacturing organizations in today’s era. In order to maintain their worldwide leadership they are able to maintain their specific forms of manufacturing system. Toyota is technology-based, comprehensive production management system with the primary goals of increasing productivity and reducing costs (Monden 1983).According to this Toyota is focused on providing the best within the budget. Among many of the development process I think simultaneous engineering is the vital one that Toyota follows. Toyota had been integrating simultaneous engineering for several years. Toyota plans, most machine, new or old, are equipped with such de- vices as well as various safety devices, fixed-position stopping, the full-work sys- tem, and baka-yoke fool proofing systems to prevent defective products. In this way, human intelligence, or human touch, is given to the machines.” (Ohno 1988, pp. 4-6). Production system of Toyota is the basis for much of the “Lean Production” movement and has dominated manufacturing trend for many years. Toyota’s performance is based on tools and quality improvement methods .Tools and techniques are one part while quality control, total quality control, business management techniques are another part to make Toyota better than the competitors. Manufacturing and production engineers use computer technology from early beginning for concept development and designing of their product which is less than 12 months or even less for derivative vehicle. Hence, the product development process of Toyota is more likely similar to that of Black and Decker which use engineering, industrial design, model making and prototyping, testing and computer ...
But since switching costs are not too high either, be it IMC’s biggest competitors or people using other means to avail a vehicle. It has been seen that a major decrease was faced by IMC when government allowed the usage of used cars for a long time as well as allowing smuggled cars to be used. Sales went down to an unexpected number. The amount of surveys by IMC also shows how much it values its customers (Nadeem, 2009). The economy of Pakistan has not been going through times where disposable incomes are enough to afford such a higher quality. It completely depends on the customers if they would like to leave the brand and all that comes with it. Most of Pakistani customers who go for Toyota cars are usually the ones who have the ability to afford a status symbol like an expensive car (IMC, 2013). Not many people can do that other than the ones living in urban areas.
Its objective is to integrate people, process, and technology. Toytoa’s product development procedure is essentially different from a manufacturing process. Its backbone is not visible, but knowledge and information which are untouchable. The product development’s cycle time is much longer than hours. It usually takes weeks or even months. The production chains are non-linear and multi-directional. Workers are no longer manufacturing workers but specialists with high diverse technology. This product development strategy is viable for Toyota. This is because this strategy does help Toyota to prolong the life cycle of current product. For instance, Toyota Camry is a very successful current product which is prolonged its life. Camry has been made since 1980s. Camry is set at an middle-high level of family veichle. After 30 years development, Camry is still very famous all over the world. This cannot be separeted by Toyota’s successful product development strategy. One of the key features of the Toyota product development system is functional engineering managers. They are primarily teachers in the Toyota system, who are the most technically competent engineers, with the highest levels of experience. Toyota’s management group is consist of high educated experts. They were all engineers and their technical excellence is very famous. But recently, Toyota’s product development system does not work very well. In
Toyota Motor Corporation is one of the largest automakers in the world. At its annual conference in Tokyo on May 8, 2008, the company announced that activities through March 2008 generated a sales figure of $252.7 billion, a new record for the company. However, the company is lowering expectations for the coming year due to a stronger yen, a slowing American economy, and the rising cost of raw materials (Rowley, 2008). If Toyota is to continue increasing its revenue, it must examine its business practice and determine on a course of action to maximize its profit.
Toyota- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling.
(5) Liker, Jeffrey K. The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. New York: McGraw-Hill, 2004. Print.
Different nations within which Toyota operates have different political, technological, social, and cultural environments. To safeguard the company’s overall image, there must be effective communication between the head office and regional quarters. This is especially important in the area of quality control, as Toyota currently grapples with safety issues facing several of its car models.
The nonmanufacturing companies can learn and apply from Toyota’s philosophy and practices as listed below: