Posted at 10.14.2018
Toyota drive its cost lower through investments in efficient scale facilities, tight cost and overhead control, and cost minimization in such areas as service, sales team, and research and development. Effective implementation of this cost reduction strategy allows Ford to earn above-average returns regardless of the presence of strong competitive forces and economic meltdown prevailing around the world.
Competitive analysis for Toyota requires supervising, assessing and propagating information from the exterior and interior atmosphere through admiration for the start of new project. Its aim is to recognize the significant factors that will resolve the achievement of the new project. A trendy way to perform such an examination is to initiate with environmental scanning utilizing a SWOT analysis. SWOT can be an ellipsis used to make clear exact strengths, weaknesses, opportunities, and threats. The outside atmospheres of the organizations have both openings and intimidating exists and even the most notable management is not fully competent to remove them simultaneously.
The present global meltdown which engulfed the complete globe in 2008 and 2009 has still not completely passed on yet, according to Managing director IMF plus some other financial pundits, the globe has turned the corner and the worst is left out.
As discussed in this year's 2009 Annual report of Toyota Corporation the biggest threat for Toyota Corporation and other automobile companies is the worst monetary conditions of the world. This has affected not only the profits of Toyota corporation but also automobile giants like Ford and General Motors.
Toyota in addition has involved in a recently available quality scandal also when most of their customers criticize the indegent quality with their new cars brakes and accelerating systems. Although Toyota has apologized using their customers but this quality control issue but this a severe blow to their already falling sales and profit.
The rivalry of other rivals is also a major threat for Toyota Corporation. Other Big automobile companies, who had been also suffering from the monetary and market conditions, try their level better to formulate an strategy that will assist them to save their face in such a turbulent time.
Opportunities for Toyota
Toyota has mainly target the youth. Although the marketplace is very competitive but Toyota has launched some right products to attract this market. ToyotaЇїЅs vehicles like Toyota Aygo has all the features that can attract the urban youths.
Present ear is the time when every new technology and product poses a fresh challenge for the surroundings of the world. As of this critical juncture, such services are welcomed by the customers that are not a threat for the environment. ToyotaЇїЅs Lexus and other vehicles are considered as environmentally friendly vehicles which is one of the major factors of their popularity.
How Toyota handle the threats
In conditions of any crisis that encircles any organization, a special public relations department known as the crisis management exists that handles the whole situation focusing all its efforts and objectives on the acquisition of an individual outcome which is to pull the business right out of the prevalent crisis.
In order to develop an effectual strategy for handling the crisis management a three point agenda is generally, first which involves the termination of the crisis and the next and third are concerned with the reinstatement and restoration of the reputation and the credibility that the business have got in the international market and among its consumers.
The best option in such hard time is to ensure that the company cuts its myriad and miscellaneous expenses in order to provide all its major shareholders sufficient relief and also facilitate the process of catalyzing credibility restoration within the consumer eye. Furthermore the company in order to acquire greater trust must divert its capital and resources into the manufacturing of vehicles that are fuel efficient and allocate prices of these vehicles such that they are easily within the monetary affordability range of the buyer.
Prominent instruments that the company can use to make use of the management being performed by the crisis management team will be the media vehicles and non-government organizations that the company regularly funds and financial assistance in multitude forms. Moreover it is also the responsibility of the business to use consumer reminder regarding the profits that their shareholders have earned from the gains registered by the company and use them as a means of improving its image and simultaneously convince the general public that the business is continually making signs of rejuvenating from the meltdown and has triumphed substantially in doing so