Toyota Motor Corporation: 1990-2010 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Toyota Motor Corporation: 1990-2010
This case follows Toyota's remarkable growth and geographic expansion from 1990 to 2010 and, in the recalls of 2009 and 2010, poses questions about the impact of that growth. Issues of increasing technological complexity also play a part.
Swot Analysis of "Toyota Motor Corporation: 1990-2010" written by Roy D. Shapiro, Stephanie van Sice includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 2010 1990 facing as an external strategic factors. Some of the topics covered in Toyota Motor Corporation: 1990-2010 case study are - Strategic Management Strategies, Globalization, Growth strategy, Product development, Supply chain, Technology and Organizational Development.
Some of the macro environment factors that can be used to understand the Toyota Motor Corporation: 1990-2010 casestudy better are - – digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , technology disruption, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
cloud computing is disrupting traditional business models, there is backlash against globalization, etc
Introduction to SWOT Analysis of Toyota Motor Corporation: 1990-2010
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Toyota Motor Corporation: 1990-2010 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 2010 1990, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 2010 1990 operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Toyota Motor Corporation: 1990-2010 can be done for the following purposes –
1. Strategic planning using facts provided in Toyota Motor Corporation: 1990-2010 case study
2. Improving business portfolio management of 2010 1990
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of 2010 1990
Strengths Toyota Motor Corporation: 1990-2010 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 2010 1990 in Toyota Motor Corporation: 1990-2010 Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the 2010 1990 are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– 2010 1990 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Toyota Motor Corporation: 1990-2010 Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to recruit top talent
– 2010 1990 is one of the leading recruiters in the industry. Managers in the Toyota Motor Corporation: 1990-2010 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– 2010 1990 has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Toyota Motor Corporation: 1990-2010 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of 2010 1990 in the sector have low bargaining power. Toyota Motor Corporation: 1990-2010 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps 2010 1990 to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of 2010 1990 in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Organizational Development industry
– Toyota Motor Corporation: 1990-2010 firm has clearly differentiated products in the market place. This has enabled 2010 1990 to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped 2010 1990 to invest into research and development (R&D) and innovation.
Diverse revenue streams
– 2010 1990 is present in almost all the verticals within the industry. This has provided firm in Toyota Motor Corporation: 1990-2010 case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For 2010 1990 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. 2010 1990 has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to lead change in Organizational Development field
– 2010 1990 is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled 2010 1990 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of 2010 1990
– The covid-19 pandemic has put organizational resilience at the centre of everthing that 2010 1990 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- 2010 1990 is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at 2010 1990 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Toyota Motor Corporation: 1990-2010 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Toyota Motor Corporation: 1990-2010 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Toyota Motor Corporation: 1990-2010 are -
Increasing silos among functional specialists
– The organizational structure of 2010 1990 is dominated by functional specialists. It is not different from other players in the Organizational Development segment. 2010 1990 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help 2010 1990 to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of 2010 1990 products
– To increase the profitability and margins on the products, 2010 1990 needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Toyota Motor Corporation: 1990-2010, it seems that the employees of 2010 1990 don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Capital Spending Reduction
– Even during the low interest decade, 2010 1990 has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Products dominated business model
– Even though 2010 1990 has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Toyota Motor Corporation: 1990-2010 should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of 2010 1990, firm in the HBR case study Toyota Motor Corporation: 1990-2010 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Toyota Motor Corporation: 1990-2010 HBR case study mentions - 2010 1990 takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Aligning sales with marketing
– It come across in the case study Toyota Motor Corporation: 1990-2010 that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Toyota Motor Corporation: 1990-2010 can leverage the sales team experience to cultivate customer relationships as 2010 1990 is planning to shift buying processes online.
High cash cycle compare to competitors
2010 1990 has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Toyota Motor Corporation: 1990-2010, is just above the industry average. 2010 1990 needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, 2010 1990 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Toyota Motor Corporation: 1990-2010 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Toyota Motor Corporation: 1990-2010 | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Toyota Motor Corporation: 1990-2010 are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for 2010 1990 in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects 2010 1990 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for 2010 1990 to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for 2010 1990 to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for 2010 1990 to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. 2010 1990 can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. 2010 1990 can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Loyalty marketing
– 2010 1990 has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, 2010 1990 is facing challenges because of the dominance of functional experts in the organization. Toyota Motor Corporation: 1990-2010 case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Building a culture of innovation
– managers at 2010 1990 can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.
Using analytics as competitive advantage
– 2010 1990 has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Toyota Motor Corporation: 1990-2010 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help 2010 1990 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, 2010 1990 can use these opportunities to build new business models that can help the communities that 2010 1990 operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Manufacturing automation
– 2010 1990 can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for 2010 1990 in the consumer business. Now 2010 1990 can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, 2010 1990 can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Threats Toyota Motor Corporation: 1990-2010 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Toyota Motor Corporation: 1990-2010 are -
Consumer confidence and its impact on 2010 1990 demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for 2010 1990 in the Organizational Development sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Toyota Motor Corporation: 1990-2010, 2010 1990 may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Shortening product life cycle
– it is one of the major threat that 2010 1990 is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of 2010 1990 business can come under increasing regulations regarding data privacy, data security, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. 2010 1990 will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Regulatory challenges
– 2010 1990 needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Technology acceleration in Forth Industrial Revolution
– 2010 1990 has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, 2010 1990 needs to keep up with the evolution of technology in the Organizational Development sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Environmental challenges
– 2010 1990 needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. 2010 1990 can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of 2010 1990.
High dependence on third party suppliers
– 2010 1990 high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Weighted SWOT Analysis of Toyota Motor Corporation: 1990-2010 Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Toyota Motor Corporation: 1990-2010 needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Toyota Motor Corporation: 1990-2010 is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Toyota Motor Corporation: 1990-2010 is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Toyota Motor Corporation: 1990-2010 is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that 2010 1990 needs to make to build a sustainable competitive advantage.