History, SWOT Analysis, and Factors Effects on Toyota

The founder of Toyota was Kiichiro Toyoda. Toyota was founded in 1937 by spinoff his father’s company. They made their first product in 1934 which is a type A engine. Then Toyota made its first passenger car in 1936. Toyota has headquartered in Japan. By revenue, Toyota is the sixth-largest company. It is the largest manufacturer company in producing Automobiles Because it manufactures more than ten million vehicles in a year. In market capitalization, Toyota is the largest listed company in Japan. Toyota is selling its products throughout the world. Toyota produces commercial as well as luxury vehicles. Toyota launches its logo worldwide in 1989 on the celebration of its 50th anniversary and release its luxury Lexus brand and gain recognized in the whole world. They have branches in multifarious countries like China, Taiwan, India, Indonesia, and Pakistan, etc. During the 1960s and70s, the company gain a lot of success and start exporting products to the foreign market. In 1966 the company also start manufacturing of buses and large trucks they also start a new trend of electrical auto components. Most of the models of other company’s fuel consumption are high to solve this issue Toyota launched a Corolla model which released in the USA. Toyota model Corolla gains a reputation for its low cost, fuel-efficient, and reliable vehicles. As we know every company had a competition in the market so Toyota also has great competition in the market. Major competitors of Toyota are Hyundai, Nissan, Honda, BMW, and Mercedes.

Strength

1. Strong Brand Image: Toyota has a strong brand image and this helps to. It provides a strong understanding of the target market about the brand. It helps people to connect with this company. It already built trust in the people and share their view enhance the credibility and ease of purchase. It makes an easy introduction to their new products.
2. Global Supply Chain: Keep loyalty among customers. As I was using this company’s car back home and still using this car in Canada also.
3. Higher Quality Goods: Nowadays the customer prefers high-quality products. It is not very much expensive. By being dependable and reliable through decades of making cars Toyota’s strength is this.

Weakness

1. Fewer luxury models: It can make some changes in their base models. They can add some new features to them So that if someone wants luxury models, they can fulfill their requirements.
2. Problem-solving: Toyota had a problem that when customers need help it takes so long time to solve their problems. So, the future company should solve this problem by hiring new professional people who can help to deal with people's problems.

Opportunities

1. The innovation of eco-friendly cars: People like to try some new things every time. So, innovation is something that will provide a chance for people to buy new products or models of the company which will be eco-friendly.
2. Chance to develop stores in developing countries: It will increase their assets. If it will start working in new developing countries, it will help them to work in a less competitive environment. It helps them to grow within the industry.

Threats

1. Works in a competitive market: As Toyota works in a perfect competition market so it faces a lot of competition so it is very hard for them to stay in the market. So, to solve this they have to proper analysis of the market.
2. Innovation market: The automobile industry is very innovative market competitors make new innovative after a short period. So, the company tries to make innovation in the market.
3. Political: This is also a big factor for Toyota company. Because government can change policies regarding motor vehicles. That will affect the business of Toyota company.

Economic factors that effect is:

The inflation rate plays an important role in Toyota's company like as the inflation rate increases, people want to spend less on everything. And due to this people are less interest in buying Toyota vehicles. That will decrease the profit of the Toyota company. And as a decrease in the inflation rate can increase the demand for Toyota vehicles.

• Saving rate: Saving rate in economy effects Toyota company in two ways
• Increase in saving rate: As an increase in saving rate people will have more money to spend on. If they have more money, they can buy Toyota vehicles. That will increase their business. And increase their profits.
• The decrease in saving rate: As saving decreases, people spend less on buying anything and Toyota sales also decrease. 

Social factors

To think about the driver’s convenience and the environment problems is the main factor in social. Toyota is doing this by improving its vehicles and inventing new electric models. So, our natural resources can be saved and that will cause less environmental pollution. Toyota is also affected by family values and changes in customer interests.

Technology

Technology plays an important role in every industry as we know that this an era of technology. and we like technology in all our products. Toyota is doing its best to introduce technology in its vehicles. Toyota's vehicles are long-lasting. their parts are of good quality with a long life. They are also doing good in new electric cars. They are also providing mobile apps for their vehicles.

Environment

Every company needs to take responsibility regarding the environment. Nowadays people also like to have an environment-friendly vehicle. Toyota is also spending too much on achieving sustainability. Toyota is also cooperating with many environment and wildlife protection agencies. They are trying to decrease their co2 emission by 90 % by the year 2050.