Toyota Motor Manufacturing, U.S.A., Inc., Video SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Toyota Motor Manufacturing, U.S.A., Inc., Video
This is an updated video of the Toyota Motor Manufacturing Kentucky (TMMK) assembly facility in Georgetown, KY. It is meant to be paired with the 693-019 Toyota Motor Manufacturing U.S.A. case, but with higher quality video. The vidoe shows a line tour of Assembly Two at Georgetown, with a focus on just-in-time delivery and installation of seats. It also shows parts of engine and body assembly (door line), kitting with Toyota's Set Pallet System" (SPS) and flow racks, the andon cord and notification system with labeling of key steps.
Swot Analysis of "Toyota Motor Manufacturing, U.S.A., Inc., Video" written by Willy Shih includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Georgetown Toyota facing as an external strategic factors. Some of the topics covered in Toyota Motor Manufacturing, U.S.A., Inc., Video case study are - Strategic Management Strategies, Manufacturing, Product development, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Toyota Motor Manufacturing, U.S.A., Inc., Video casestudy better are - – there is increasing trade war between United States & China, technology disruption, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs,
challanges to central banks by blockchain based private currencies, geopolitical disruptions, etc
Introduction to SWOT Analysis of Toyota Motor Manufacturing, U.S.A., Inc., Video
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Toyota Motor Manufacturing, U.S.A., Inc., Video case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Georgetown Toyota, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Georgetown Toyota 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 Manufacturing, U.S.A., Inc., Video can be done for the following purposes –
1. Strategic planning using facts provided in Toyota Motor Manufacturing, U.S.A., Inc., Video case study
2. Improving business portfolio management of Georgetown Toyota
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Georgetown Toyota
Strengths Toyota Motor Manufacturing, U.S.A., Inc., Video | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Georgetown Toyota in Toyota Motor Manufacturing, U.S.A., Inc., Video Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Georgetown Toyota in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Georgetown Toyota has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Toyota Motor Manufacturing, U.S.A., Inc., Video 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.
Learning organization
- Georgetown Toyota 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 Georgetown Toyota is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Toyota Motor Manufacturing, U.S.A., Inc., Video Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Georgetown Toyota is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Willy Shih can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Successful track record of launching new products
– Georgetown Toyota has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Georgetown Toyota has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Sustainable margins compare to other players in Technology & Operations industry
– Toyota Motor Manufacturing, U.S.A., Inc., Video firm has clearly differentiated products in the market place. This has enabled Georgetown Toyota to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Georgetown Toyota to invest into research and development (R&D) and innovation.
Strong track record of project management
– Georgetown Toyota is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Georgetown Toyota 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.
Diverse revenue streams
– Georgetown Toyota is present in almost all the verticals within the industry. This has provided firm in Toyota Motor Manufacturing, U.S.A., Inc., Video 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.
Innovation driven organization
– Georgetown Toyota is one of the most innovative firm in sector. Manager in Toyota Motor Manufacturing, U.S.A., Inc., Video Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Georgetown Toyota is one of the leading recruiters in the industry. Managers in the Toyota Motor Manufacturing, U.S.A., Inc., Video are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Georgetown Toyota has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses Toyota Motor Manufacturing, U.S.A., Inc., Video | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Toyota Motor Manufacturing, U.S.A., Inc., Video are -
Need for greater diversity
– Georgetown Toyota has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Interest costs
– Compare to the competition, Georgetown Toyota has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Products dominated business model
– Even though Georgetown Toyota 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 Manufacturing, U.S.A., Inc., Video should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Toyota Motor Manufacturing, U.S.A., Inc., Video, in the dynamic environment Georgetown Toyota has struggled to respond to the nimble upstart competition. Georgetown Toyota has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Georgetown Toyota products
– To increase the profitability and margins on the products, Georgetown Toyota needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Georgetown Toyota supply chain. Even after few cautionary changes mentioned in the HBR case study - Toyota Motor Manufacturing, U.S.A., Inc., Video, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Georgetown Toyota vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Toyota Motor Manufacturing, U.S.A., Inc., Video 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 Manufacturing, U.S.A., Inc., Video can leverage the sales team experience to cultivate customer relationships as Georgetown Toyota is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Toyota Motor Manufacturing, U.S.A., Inc., Video HBR case study mentions - Georgetown Toyota 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.
Skills based hiring
– The stress on hiring functional specialists at Georgetown Toyota has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Georgetown Toyota needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Low market penetration in new markets
– Outside its home market of Georgetown Toyota, firm in the HBR case study Toyota Motor Manufacturing, U.S.A., Inc., Video needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Toyota Motor Manufacturing, U.S.A., Inc., Video | 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 Manufacturing, U.S.A., Inc., Video are -
Using analytics as competitive advantage
– Georgetown Toyota 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 Manufacturing, U.S.A., Inc., Video - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Georgetown Toyota to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Georgetown Toyota 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.
Creating value in data economy
– The success of analytics program of Georgetown Toyota has opened avenues for new revenue streams for the organization in the industry. This can help Georgetown Toyota to build a more holistic ecosystem as suggested in the Toyota Motor Manufacturing, U.S.A., Inc., Video case study. Georgetown Toyota can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Georgetown Toyota in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Buying journey improvements
– Georgetown Toyota can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Toyota Motor Manufacturing, U.S.A., Inc., Video suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Georgetown Toyota can use these opportunities to build new business models that can help the communities that Georgetown Toyota operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Georgetown Toyota is facing challenges because of the dominance of functional experts in the organization. Toyota Motor Manufacturing, U.S.A., Inc., Video 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.
Leveraging digital technologies
– Georgetown Toyota can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Loyalty marketing
– Georgetown Toyota 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.
Building a culture of innovation
– managers at Georgetown Toyota 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 Technology & Operations segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Georgetown Toyota can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Toyota Motor Manufacturing, U.S.A., Inc., Video, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Georgetown Toyota can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Georgetown Toyota 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 Georgetown Toyota to hire the very best people irrespective of their geographical location.
Threats Toyota Motor Manufacturing, U.S.A., Inc., Video 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 Manufacturing, U.S.A., Inc., Video are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Georgetown Toyota with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Georgetown Toyota 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.
Consumer confidence and its impact on Georgetown Toyota 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.
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 Georgetown Toyota.
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.
Increasing wage structure of Georgetown Toyota
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Georgetown Toyota.
Technology acceleration in Forth Industrial Revolution
– Georgetown Toyota has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Georgetown Toyota needs to keep up with the evolution of technology in the Technology & Operations 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.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Georgetown Toyota can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Georgetown Toyota can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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 Manufacturing, U.S.A., Inc., Video, Georgetown Toyota may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
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. Georgetown Toyota 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Georgetown Toyota in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Georgetown Toyota needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Toyota Motor Manufacturing, U.S.A., Inc., Video 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 Manufacturing, U.S.A., Inc., Video 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 Manufacturing, U.S.A., Inc., Video 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 Manufacturing, U.S.A., Inc., Video 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 Manufacturing, U.S.A., Inc., Video 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 Georgetown Toyota needs to make to build a sustainable competitive advantage.
