STRATEGIC MANAGEMENT: STRATEGIC CHOICE

Strategic Management: Strategic Choice



Strategic Management: Strategic Choice

Introduction

Nowadays, Toyota constitutes one of the biggest automakers of the world, and also one of the most known worldwide retailers. The history of Toyota begins in the end of 19th century, when Sakichi Toyoda invented the first electrically driven loom in Japan; with this, he created a revolution in the textile industry. In 1918, the Toyoda Spinning and Weaving Company were created. And for 1926, with the help of his son, Kiichiro Toyoda, Toyoda Automatic Loom Works was founded.

SWOT ANALYSIS

Strengths

Toyota Motor Corporation is a global organization that nowadays is leading the automakers list of the world. This enterprise commercializes its products in more than 170 countries worldwide. Some of the most important places where Toyota has its primary markets for vehicles are Japan, Europe, North America and Asia. Indeed, thanks to its strategically logistic system Toyota has generated a high financial strength (sales growth of 29.3% for 2008)

Weaknesses

Toyota´s marketing department has found it difficult to analyze the different consumer´s behavior in the markets where they´re offering their products.

As an example, Toyota´s service office in Japan has not found identify the marketing strategy to adapt to the different needs of the Japanese consumers. By now, for Japanese people Toyota is more expensive than other brands (General Motors, Mitsubishi, Ford, etc.); so now that they have a wide diversity of models, they prefer to buy other brands at affordable prices.

Also, because of not making a right analysis on its products´ demand, Toyota announced (July 2008) that it would shut down truck production at two United States plants for three months and consolidate its pickups into one factory next year. Mainly because demand on pickups and big S.U.V. ´s started falling down.

Opportunities

Since 2005, the Japanese auto Enterprise Honda decided to introduce ...