Swot Analysis Of Toyota

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Introduction
Toyota has been operating in Australia for over 50 years as a wholly-owned subsidiary of the Toyota Motor Corporation. The success of the company has been through the support of its customers, employees, suppliers, dealers, and the commitment of the government as well as other organisations in Australia. As such, Toyota has grown to be one of the leading automotive companies in Australia, with a market share of 18 percent as of the end of 2011 (Toyota Australia, 2014).
Suppliers
Toyota has over 1,400 suppliers (Appendix 1) assisting them in their production of their cars, whereby the supply chain is divided into three main categories, including indirect purchasing (IP), Spare Parts and Accessories (SP&A), and Direct Purchasing (DP) (Toyota Australia, 2013).
The major suppliers of Toyota who have been awarded for the excellence of service (Appendix 2) in various categories include:
TT Steel Centre Australia Pty Ltd/ TT Assembly Australia Pty Ltd
Toyota Tsusho (Australasia) Pty. Ltd (TTALA), a wholly owned subsidiary of Toyota Corporation, was founded as a trading and supply-chain specialist of the Toyota Group. The vehicles, parts, and machinery division is continually growing and therefore diversify their product range which include automotive parts, electronics, and accessories to address their customer’s preferences. As the electronic industry is ever growing, Toyota Tsusho’s trade in such a field includes a wide variety of products, including electronic parts, personal computers, semi-conductor manufacturing equipment, and Computer Aided Design (CAD) systems. TT Steel Centre and TT Assembly were awarded for Safety and Quality respectively (Toyota Tsusho Australasia, n.d.).
Continental Pty Ltd
Continental Pty Ltd, g...

... middle of paper ...

...re replacement or substitute goods from other sources. Furthermore, Toyota does permit failures or delay in delivery that occur that are beyond the suppliers control such as floods, fires, explosions, riots, windstorms, or terrorism acts (Marksberry, 2012). However, suppliers are not exempt from the commitments if their employees participate in slow down, lockouts, or go on strike. Ultimately, the delivery requirements set out by Toyota may seem severe, the JIT inventory system requires a clear understanding and close coordination of each other’s intertwining networks. As such, based on this report, it can be concluded that the bargaining power of suppliers in the supply chain is weak. This is because due to the large number of suppliers, materials are widely accessible and therefore suppliers do not pose any great threat of forward integration (Marksberry, 2012).

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