In order to analyse the internal competencies of Toyota motors, the model can be used is traditional SWOT analysis in order to evaluate strengths and weakness of Toyota Company and what leads to their opportunities and threats.
Toyota is among the world’s largest car manufacturers today, and has the most comprehensive global presence. Toyota Company has been able to maintain an image of quality and reliability. Moreover, Toyota Motors has been renowned for its quality controls and management operations efficiencies that enable them to capitalize on cost cutting against their competitions. Toyota is following just in time production system successfully.
There have been investments in 2009 by Toyota in US and China and able to get the Net profits rose by 0.8% to 1.17 trillion yen ($11bn; £5.85bn), while sales were 7.3% higher at 18.55 trillion yen. This is against the global auto industry. Analysts are off the view that this profits and growth is because of strong mix of vehicles manufacturing.
Some others and internet resources were of the view that the Toyota have been observed not to be the bold one pursuing the innovation at the first place but it plays fast second player role that is among the weakness or also can be termed as defensive measures. Nonetheless, they lose their first mover advantage at that time.
As Toyota is now huge base all around the globe and being big has its own consequences. Toyota was supposed to follow just in time manufacturing system that is difficult to manage on this wide scale but Toyota is doing well but the threat remains there. As Toyota is working on the demand bases and just in time any fall in their own demand of vehicles can easily resulted in excess capacity and can suffer fixed costs without sale. This weakness is embedded in their operations and sales system and can prove to be fatal in the time of crisis.
Lexus, the luxury line of Toyota is