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TOYOTA Case Study Analysis

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TOYOTA Case Study

Toyota Motor Corporation is a multinational manufacturer of automotive parts. The company has its headquarters located in Toyota Archi, in Japan. This renowned Japanese automotive company was founded by Kiichiro Toyoda in the year of 1937 on the 28th of August. The company is renowned and foremost in the dealings of automobiles. The company is considered to be the tenth largest company that can be seen in the terms of the revenue that is earned by the company. Also, the company is reputed as an ace employer with a current status of approximately 364,445 employees who are currently associated with the company worldwide. In Japan, the country is considered to be the largest in the market and has the largest global market that sells various hybrid electric vehicles.You can get study help.

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The Toyota Company that was originally founded in the year 1937 by Kiichiro Toyoda, was actually a deviation that was seen from the company of his father that was named as the Toyota Industries. The primary focus of the company was to manufacture the different automobile elements. The first product of the company, Toyota Motors Corporation was Toyota AA that was manufactured in the year 1934. This was manufactured while the company was still a part of the main company that is Toyota Industries.  Presently the company is seen to produce vehicles under five distinct brands that include Hino, Ranz, Lexus and Daihatsu apart from that of Toyota. Besides this, the company is a stakeholder having stakes at many companies that include the Subaru Corporation, the Yamaha Motors and Suzuki among others.If you want to know how we work, take a look at our project management assignment who helps in managing your marketing analysis.

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PESTEL Analysis 

Through the PESTEL analysis the various factors that are located outside the company that can turn into major threats or opportunities can be understood through the help of the PESTEL analysis. It is further discussed below:

Political Factors 

There are certain political threats that can affect the business for Toyota. Since Toyota is a multinational global automobile company, the company naturally has their subsidiaries that are located in several parts of the world. Therefore, the political issues at the different places that the company has its business in is important for the business to prosper. In the case of Toyota, the political stability that is seen in the markets that the company deals in can be referred to as the biggest opportunity that the company can have. Also, the free trade options between Japan, which is the home country of the company and the other countries where the company, Toyota, operates. Another important factor is the support that the company might get from the government in the countries that the company deals in. This can be a very big opportunity for the company.

Economic factors 

The changing economic trends that are seen all across the world is very important for the business that Toyota can perform in the different parts of the world. Through the economic factors in the PESTEL analysis, it can be understood that the various effects that the different situations in economics and business can have on Toyota are analyzed. In the case of Toyota, the most significant economic factors that can affect the business are the opportunity that the company has in exporting the various products of the company from Japan on the basis of the weakness of the Japanese Yen. After Japan, the second largest market for Toyota is the U.S. This is a golden opportunity that Toyota can utilize to develop the business more. Toyota also deals in countries that have a stable economy. This is one of the most important economic opportunities for Toyota.

Social factors 

Social factors or the sociocultural factors is an important dimension in the PESTEL analysis and it helps to understand the social factors that can prove to be the opportunity or threat for the company. In today’s world it is seen that there is an increasing interest that is noticed among the different people towards the various hybrid cars. This is a golden opportunity for the company as it is renowned for dealing in hybrid vehicles. However, the wealth gap that is growing each day among the different classes can be a big threat for the company as the company has its main revenue come from the middle class.

Technological Factors

Technological factors are known to have a great effect on the business these days. In the case study of Toyota, the technological factors are very important because the company is renowned for the use of technology in business. This is considered to be the age of technology. There is a rise in the trend of e-commerce that can be seen in the market. This can prove to be a golden opportunity for Toyota as they can easily use the facility of e-commerce and sell their products. Also, the mobile phone has become a mandatory thing in the lives of human beings these days. This can be a golden opportunity for the company Toyota. Toyota can improve the various applications on the mobile phone that will help the company to reach the customers more easily.

Environmental Factors

Ecological concerns are very important for the business of a company. There are many important laws that are passed in various parts of the world as an attempt to protect the environment. These laws can be a big problem for the company to continue its business in different parts of the world. 

Legal Factors

Legal factors are the various legal systems that are usually crucial for a business. There are multiple factors that seemingly affect the business of a firm. The legal factors that may affect the business of Toyota can be the intellectual property laws that are improving each day. Also, the concern for the environment is a real one. Therefore, with each day the environmental laws are becoming more complex. This can be a big threat to Toyota. Also, there are multiple changes that can be seen in the consumer laws and it is becoming complex every day.  Therefore, this can also be a very big challenge to Toyota.Our law assignment help services will help you in legal problems.

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SWOT Analysis

Through the SWOT analysis, the internal threats and opportunities in a company are recognized.


Toyota is considered to be one of the most effective automobile companies. the strengths that help the company to be one of the leading companies in the automobile industry can be as the following:

  • Toyota has a brand image that is very strong. This helps the company to gain a lot of customers who are loyal towards the company. 
  • Also, the company has a supply chain that is global in nature. This helps the company to get the right supply of the raw materials.
  • Toyota as a company is very developed in technology. Therefore, the company is capable of innovating new ideas every day. This is a big strength that helps the company to achieve in the business.


In spite of being a leading company in automobiles, Toyota has certain weaknesses that can cause a threat to the company. They are:

  • Toyota follows a hierarchical organizational structure. This is seen to stop the required flexibility in the operations especially in the regional areas.
  • Also, often the problems in the company are not brought to the forefront properly because of the organizational culture that is of secrecy.


The various opportunities of Toyota can be as the following:

  • The ever-growing market in the different developing countries. 
  • Also, there is a rise in demand that is noticed for automobiles that are fuel efficient like Toyota.
  • Growing trend of interest towards advanced electronics since the company majorly deals in it. 
  • The position of Japanese Yen is weaker than the dollar in the US.


 various threats that are faced by the company are:

  • Growing number of Low-cost competitors in the various markets especially the manufacturers belonging to Korea, India and China.
  • Rapid amount of innovation among the competitors.


  • Toyota should implement the use of technology in order to stop the rivals from entering the market. 
  • The culture of the company is also a weakness of the company that can be developed by the company. This will help Toyota to achieve competitive advantages.
  • Toyota should invest more on e-commerce and their applications on mobile in order to increase the loyalty of the customer.
  • Toyota must look into the different legal factors and keep themselves updated about the latest laws that are important for business.

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Therefore, to conclude the case study, it may be stated that Toyota is a very big multinational automobile company that has business operations that can be seen all across the world. The external environment of the company that may affect the business is understood by the PESTEL analysis, which states the major threats that the company faces in the outside world. The SWOT analysis helps to understand the internal factors that can cause a threat to the company. At the end of the case study are certain recommendations that can help the company to develop competitive advantage. As you can see, when you avail our TOYOTA  case study assignment help service, you get all-round assistance. Thus, if you want to stand out from the rest of the class, you can contact us.

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