S.W.O.T ANALYSIS

S.W.O.T. AnalysisSTRENGTHWEAKNESSOPPORTUNITY

THREAT

The SWOT analysisCombines strengths and

weaknesses from own product/market audit

Opportunities and threats from environmental analysis

Statement of how current strategy and strengths and weaknesses are relevant to and capable of dealing with changes in the environment

Example SWOT for ToyotaStrengthsRESOURCES (TANGIBLE)High investment in production facilities based on inc profits (£5.85bn); inc sales 7mn cars @ £72bn (up 7.3% against downward industry trend)

RESOURCES (INTANGIBLE)Strong industry position based on reputational (brand image and quality), innovation (NPD success), human (management)

CAPABILITIESMarketing: Right product

mix for markets it serves; clear segmentation, targeting and positioning strategies. Diversified product range (mini to trucks)

R&D: Hybrid technologiesManufacturing: Lean

manufacturing and quality (TQM, Toyota Production System)

Example SWOT for ToyotaWeaknessesSize: operational efficiency demands high volume and world markets are oversupplied hence risk of overcapacity

Economic factors: fluctuating economic conditions of main markets (US & Japan); fluctuating exchange rates can narrow margins

Some recall problems (1 million Yaris with seatbelt problems)

Example SWOT for ToyotaOpportunitiesPolitical/legalEnvironmental protection laws favour hybrid technologies Lexus RX 400L & Prius

EconomicHigh oil prices favour environmentally friendly technologies

SocioculturalChanging consumer

tastesNew segments – urban

youth (Aygo)

TechnologicalSell hybrid

technologies to other producers (eg Ford for SUV hybrid)

SWOT analysis for ToyotaThreatsCompetitive rivalry and oversupply

New entrants from China

Economic slowdown in Pacific/US/Europe

Raw material prices

KEDARESWAR PANDACITE, BHUBANESWAREmail-kedar19x@gmail.comPh.no. 98611554549337111133