S. W. O. T analysis

S.W.O.T ANALYSIS

S.W.O.T. Analysis

• STRENGTH
• WEAKNESS
• OPPORTUNITY
• THREAT

The SWOT analysis

• Combines 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 Toyota Strengths

RESOURCES (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)

CAPABILITIES

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

R&D: Hybrid technologies

Manufacturing: Lean manufacturing and quality (TQM, Toyota Production System)

Example SWOT for Toyota Weaknesses

• Size: 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 Toyota Opportunities

Political/legal

Environmental protection laws favour hybrid technologies Lexus RX 400L & Prius

Economic

High oil prices favour environmentally friendly technologies

Sociocultural

Changing consumer tastes

New segments – urban youth (Aygo)

Technological

Sell hybrid technologies to other producers (eg Ford for SUV hybrid)

SWOT analysis for Toyota Threats

• Competitive rivalry and oversupply
• New entrants from China
• Economic slowdown in Pacific/US/Europe
• Raw material prices

Ismoil A'zamov

Ismoil A'zamov

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