SFAS MATRIX AND TOWS MATRIX ON TOYOTA

TOYOTA MOTORS SFAS ANALYSIS

SWOT #FACTORSWEIGHTRATINGWGTD SCORECOMMENTS
S1Devoted and Viable Employees and Supplier Network.154.5.675It’s large, devoted and sustainable employee and supplier network, which has made it survive economic turbulent.
S2Rational Capital and a Diversified Market.153.4.51Toyota has a rational capital and a diversified market that is used as an advantage
S3Strong Research & Development Unit and Marketing Base.153.1.465There is no doubt that the company is coming with innovative eco-friendly products, but still, it is far behind than its competitors such Tesla.
W1Geo-position Disadvantages.052.5.125Toyota has gone through a financial crisis due to political instabilities in some of the countries it operates its manufacturing facilities (Kotabe & Murray, 2004)
W2Shrinking market share in the growing market.053.0.15Ineffective vehicles have made Toyota lose advantage to its competitors.
O1Clean/Green Technologies.153.4.51This will be fuel efficient and eco-friendly cars that are becoming popular and will significantly improve Toyota’s brand image.
O2Increasing demand of compact cars.153.7.555Toyota’s products are known for its quality and innovation. This gives the benefit of an increase in demand for its products.
T1Japanese Yen- US Dollar exchange rates.052.5.125Toyota needs to shift some of its manufacturing processes to other countries which are less influenced by the Yen fluctuation.
T2Competition from other players in the Growing Market.053.1.155Toyota needs to counter aggression from its rivals by offering innovative and consumer-oriented products to its customers (Nkomo, 2013)
T3Financial slowdown.052.5.125Economic slowdown across the world have impacted demand and sales in automotive industry
TOTAL SCORES1.003.395

TOYOTA MOTORS TOWS ANALYSIS

TOYOTA MOTORS TOWS ANALYSIS
         Internal              Factors External FactorsStrengths (S) S1: Devoted and Viable Employees and Supplier Network S2: Rational Capital and a Diversified MarketWeaknesses (W) W1: Geo-position Disadvantages W2: Shrinking market share in the growing market
Opportunities (O)   O1: Clean/Green Technologies O2: Increasing demand of compact cars  SO Strategies   S1/O1– Toyota should use its vast workforce to develop cheaper eco-friendly vehicles for the new market (Sperling & Gordon, 2009). This will help Toyota to increase its market share   S2/O2– Toyota should use its intellectual capital to meet the increasing demand for compact cars around the world. The capital should be channeled into investments of manufacturing plants abroad.WO Strategies   W2/O2- The increasing demand for the compact cars will see Toyota increase its market share. The demand of such cars across Europe and some African countries should be an advantage to Toyota in increasing its market share.
Threats (T)   T1: Japanese Yen- US Dollar exchange rates T2: Competition from other players in the Growing Market  ST Strategies S2/T2- With stiff competition in the market, Toyota has to use its diversified market to set itself as a major shareholder of the market S2/T2– Toyota’s capital should be focused onto research and developments of innovative products. This will ensure that there is a variety of products that the customers can choose from.WT Strategies   W1/T2– Toyota should consider shifting some of its operations and manufacturing processes to other countries which are less influenced by the Yen fluctuation. W2/T2- Toyota should consider offering innovative and consumer-oriented products to its customers to counter its rivals and claim parts of the market share.

References

Kotabe, M., & Murray, J. Y. (2004). Global sourcing strategy and sustainable competitive advantage. Industrial marketing        management33(1), 7-14.

Nkomo, T. (2013). Analysis of Toyota Motor Corporation.

Sperling, D., & Gordon, D. (2009). Two billion cars: driving toward sustainability. Oxford University Press.

Leave a Reply

Your email address will not be published. Required fields are marked *