Strengths

1- A strong brand name, Toyota is considered to be the world’s largest automobile producer. Toyota has been operating 51 manufacturing companies in 26 countries including 12 in Japan.

2- Toyota possess a powerful market position by promoting innovative production techniques that emphasize on eliminating wastes and overall improvement in the manufacturing side has made Toyota , the true technological market leader.

3- Toyota has been known all over the world for its product’s quality, durability and reliability.

4- Innovation is the key success factor through massive production in hybrid vehicles all over the world that has been increasing Toyota’s sales.

5- Toyota is also known at its best to motivate its 300,000 human resources and enrich the corporate culture to achieve favorable outstanding results.

6- Toyota’s investment in R &D Department is the reason for the recent improvement in the design and research centers in the whole world.

7- Availability of production facilities is high globally.

Weaknesses

1- Due to unstable political situation in some countries, Toyota has to face through financial crisis and a decline in sales as well.

2- In some countries, it’s hard for Toyota to maintain the manufacturing facilities as they are expensive and turns to be a serious problem when there is a need to reduce or discontinue production during economic downturn.

3- Ineffective vehicles can make Toyota lose its brand image and a potential loss in incomes in the long term.

4-  Toyota is often being criticized as the foreign importer.

Opportunities

1- Countries like Brazil, India, China that is not been explored by Toyota can be a profitable advantage for the organization to make large investments.

2- Due to rise in fuel prices will benefit Toyota to produce cars that are more fuel efficient and is less harmful to the environment.

3- Changing consumer’s preference through adapting related/unrelated diversification strategy.

4- The demand to buy luxurious cars has more increased recently in countries like India, Russia and USA.

Threats

1- As Toyota basically originates in Japan so with a continuous appreciation of Yen can create difficulties while exporting cars in other countries.

2- The economic slowdown in various economies of the world can have a negative impact on the demand and sales of automotive division.

3- Severe competition against rivals.

4- Market saturation in Europe and USA leads to reduction in car demand and sales which affects Toyota also due to rise in fuel prices.

5- Those car manufacturers who sell  cars in cheaper rate has forced Toyota to put it prices down which can be a risk to its organization’s financial position.

SO Strategies

1- Toyota with a strong global presence across the world can use its potential to invest in the emerging economies like Brazil, China to exploit more benefits these countries possess
(S1, O1).

2- By introducing more new product range (O3 ,S3)

3- To penetrate existing markets by offering innovative techniques and customer oriented products.(O3,S4) (O4,S4)

4- Being a strong market leader currently, Toyota has the benefit of increase in demand in the automotive sector in order to achieve more profit in sales (O4, S2).

WO Strategies

1- Offering innovative/improved products in order to overcome the loss in sales and negative impact on its brand image. (W1,O3) (W3,O3)

2- By decreasing the overall cost. (W1, O3).

3- As the demand for Toyota vehicles is increasing currently can give some support to Toyota, if the resources are being distributed equally and therefore will give less amount of time to work on manufacturing facilities specifically in those countries where they are considered to be expensive (W2, O4).

ST Strategies

1- Through market expansion in the new economies can lessen the influence of Yen on Toyota who’s already known as the world’s market leader and so in this case, the organization can shift its some operations to other countries. (S2, T1)  (S2, T2).

2- Offering innovation in products can prevent Toyota from increase in fuel prices and customers also will have several alternatives. (S4,T4)

3- Toyota’s most products are best known for its quality and innovation that can minimize any loss in prices against its competitors in the manufacturing sector. (S3,T3) (S4, T5).

WT Strategies

1- The best alternative is to shift some of the manufacturing operations in other countries
That is less influenced by the Yen fluctuation and can improve its financial conditions affected by economical/political instability at the same time. (W1, T1) (W2, T2).

2- The effect of market saturation can be reduced by focusing on some segments that is able to afford expensive manufacturing facilities and high standard products which will help Toyota to produce cars of its best quality. (W2,T4) (W3, T4).