Toyota Swot Analysis

Topics: Automobile, Automotive industry, Lean manufacturing Pages: 4 (1257 words) Published: January 16, 2012
Toyota SWOT AnalysisStrengths: Strategic Advantages
Kanban System-
Toyotas strategic aspect that differienates them from other automanufacturers is their production process. The just in time method has proven to be effectiveand efficient at saving costs for Toyota, therefore can charge less for their products. This givesthem a competitive advantage over other auto manufacturers. Only when the parts are needed,do the suppliers provide the parts due to an integrated supply chain system. Leanmanufacturing also cuts down on storage costs and increases inventory turnover and speeds upproduction. Toyota is about effectively using resources to maximize their production andmaximize elimination of unwanted costs. This lean manufacturing system has distinguishedToyota from any other organization and has greatly decreased costs and increase productproduction efficiency (Teresko, John). Organizing Suppliers

- Toyota believes that to have an efficient manufacturing system, there needs to bestrong relationships with suppliers. Suppliers are a key component of the Kanban System, so it is vital tohave close relationships with them to keep them up to date on new changes. They have a strong horizonintegration verses most automotive companys vertical integration. Horizontal integration mergescompetitors to gain a competitive advantage with large organizations. Toyota found that horizontalmerge proves to be cost effective, risk reducing, and increase benefits (Hill, Charles W. L.).Understanding the importance of good relationships with suppliers, Toyota sought out to assist withmanagement, help engineering expertise, and even offered to finance potential investments (Hill,Charles W. L.). Toyota strives for the best and only goes after the best suppliers of Japan and now theUnited States (Vaghefi, M. Reza).Strengths: Cultural Advantages Loyalty

- One of the major advantages in working with Toyota is their cultural advantages. One of thecultural advantages is respect for...
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