Toyota Company Analysis
MGMT 485
FALL 2006
Table of Contents 1. About Toyota 3
1.1. Vision and Mission 3
1.2. Company history 6
2. Industry description 10
2.1. The Automotive Industry 10
2.2. Size 11
2.3. Porters Five Forces 11
2.4. Growth Potential 15
2.5. Major Competitors and Market share 17
2.6. Weighted Competitive Strength Analysis Appendix to Section 2
2.7. Auto Industry Group Map Appendix to Section 2 3. Company Description 18
3.1. Marketing 18
3.2. Research and Development 20
3.3. Production and Operations 22
3.4. Human resources 23
3.5. Finance 24
4. SWOT Analysis 28
4.1. Strengths 28
4.2. Weaknesses 30
4.3. Opportunities 31
4.4. Threats 32 5. Core Competencies 34
6. Strategic Alternatives 36
6.1. Aggressive Growth 36
6.2. Neutral Strategy 36
6.3. Defensive Strategy 37
6.4. Mixed Strategy 37
7. Recommended Alternative 38
8. Bibliography 40
About Toyota
Toyota Motor Corporation is the worlds eight largest company and the second in overall production of vehicles worldwide. It is expected to overtake GM as the leading manufacturer of automobile by 2008. Toyota Motor Corporation and its subsidiaries sold over 7.4 million passenger cars, trucks, and buses worldwide under the Toyota, Scion, Lexus, Daihatsu and Hino brands in the fiscal year ended March 31, 2005. The company manufactures vehicles in 27 countries and regions throughout the world and sells them in more than 170 countries and locations. The primary focal point of Toyota Motor Corporation is the automotive Industry, but it also has a finance segment and a small involvement in other industries such as Japanese prefabricated housing, information technology, Intelligent Transport Systems, Biotechnology, and E-Business. The financial services segment
FALL 2006
Table of Contents 1. About Toyota 3
1.1. Vision and Mission 3
1.2. Company history 6
2. Industry description 10
2.1. The Automotive Industry 10
2.2. Size 11
2.3. Porters Five Forces 11
2.4. Growth Potential 15
2.5. Major Competitors and Market share 17
2.6. Weighted Competitive Strength Analysis Appendix to Section 2
2.7. Auto Industry Group Map Appendix to Section 2 3. Company Description 18
3.1. Marketing 18
3.2. Research and Development 20
3.3. Production and Operations 22
3.4. Human resources 23
3.5. Finance 24
4. SWOT Analysis 28
4.1. Strengths 28
4.2. Weaknesses 30
4.3. Opportunities 31
4.4. Threats 32 5. Core Competencies 34
6. Strategic Alternatives 36
6.1. Aggressive Growth 36
6.2. Neutral Strategy 36
6.3. Defensive Strategy 37
6.4. Mixed Strategy 37
7. Recommended Alternative 38
8. Bibliography 40
About Toyota
Toyota Motor Corporation is the worlds eight largest company and the second in overall production of vehicles worldwide. It is expected to overtake GM as the leading manufacturer of automobile by 2008. Toyota Motor Corporation and its subsidiaries sold over 7.4 million passenger cars, trucks, and buses worldwide under the Toyota, Scion, Lexus, Daihatsu and Hino brands in the fiscal year ended March 31, 2005. The company manufactures vehicles in 27 countries and regions throughout the world and sells them in more than 170 countries and locations. The primary focal point of Toyota Motor Corporation is the automotive Industry, but it also has a finance segment and a small involvement in other industries such as Japanese prefabricated housing, information technology, Intelligent Transport Systems, Biotechnology, and E-Business. The financial services segment
Bibliography: Website: Toyota Central R&D Labs., Inc./Energy Environment, Research and Development, http://www.tytlabs.co.jp/english/tech/tec.html, 2006 Website: TOYOTA, Financial Data, Financial Performance, (http://www.toyota.co.jp/en/ir/financial/index.html, 2006 Website: Toyota Motor Corporation information and related industry information from Hoovers, Toyota Motor Corporation, Income Statement, http://www.hoovers.com/toyota/, 2006 Website: TM: Summary for Toyota MTR CP ADS, yahoofinance.com, Stock Performance, 2006 Website: Toyota’s U.S. Sales Surpass Ford’s Again, Forbes.com, By JOSEPH ALTMAN, 2006 Website: At A Glance, Forbes.com, 2006 Website: Toyota Motor Corporation Employee Base, BusinessWeek.com, 2006 Website: Toyota Motor Corporation, Wikipedia.com, 2005 Website: Toyota Motor Corporation, Encarta.com, 2006 Website: Toyota Motor Corporation, Toyota.com, 2006