Toyota Motor Case Study

Weakness

On the other hand, Toyota Motor also has its weakness. Toyota is large-scale recalls company in the market. For instance, Toyota had quite a few large-scale vehicle recalls over the past few years. So, the business recalled 9 million vehicles in 2009-2010 and 7.43 million cars in 2012. Such recalls does not only hurt the firm financially but significantly damages firm’s brand and reputation. It also can extremely to immense competition from world class competitors. Besides that, Toyota Motor is the Japanese car manufacturer and it seen as a foreign importer.

Besides that, Toyota Motor is weak presence in the emerging markets. Toyota’s main markets are Japan, US and Europe, while such emerging economies as China or India make only a small percentage of all Toyota’s sales. Hence, due to poor presence in the largest automobile market such as China, Toyota will find it hard to compete with GM that has huge market share there. Being big has its own problems. The World market for cars is in a condition of surplus and car manufacturers need to make sure that it is their models that consumers want and desire. Moreover, Toyota markets most of its products in the US and in Japan. Therefore it is exposed to fluctuating economic and political conditions those markets. Perhaps that is why the company is beginning to shift its attentions to the emerging Chinese market. Movements in exchange rates could see the already narrow margins in the car market being reduced.

In addition, Toyota Motor corporate needs to keep producing cars in order to retain its operational efficiency. Car plants represent a huge investment in expensive fixed costs, as well as the high costs of training and retaining labors. So, if the car market experiences a down turn, the company could see over capacity. On the other hand, the car market experiences an upturn, then the company may miss out on potential sales due