It is no secret that Toyota Motors sees the next wave of growth coming from developing markets in Southeast Asia and South America. In 2014, it opened its fourth auto plant in Indonesia at an investment of $340 million.

Potential Growth of Toyota Market
It is no secret that Toyota Motors sees the next wave of growth coming from developing markets in Southeast Asia and South America. In 2014, it opened its fourth auto plant in Indonesia at an investment of $340 million. With a greater focus on building cars suited to the needs of customers in developing markets, Toyota hopes to generate 50% of its total vehicle sales from developing markets by 2015, up from 45% in 2011. Only in Indonesia, the car sales raised to 1.12 million.

The SWOT Analysis
The SWOT analysis shows the strengths, weaknesses, opportunities and threats of a company. Toyota’s SWOT analysis shows the findings below:
Strengths:
Toyota has got the most innovative culture. The brand reputation is valued at $30 billion. It is the industry leader in production and sales of cars due to its strong brand portfolio. Toyota is also becoming the leader in “green” cars development.
Weaknesses:
The hierarchical organizational structure and the secrecy in organizational culture are the only major weaknesses that can be found in Toyota Corporation.
Opportunities:
There are lots of opportunities for Toyota to shine even more, such as its positive attitude towards “green” vehicles, increasing fuel prices, and the changing needs of customers that drive Toyota always to be the first to come up with the newest ideas and designs.
Threats:
The new emission standards have been a threat to all car manufacturers, not only Toyota, as well as the continuous increase in raw material prices, and the intense competition of other car manufacturers.

Competitive Advantages
Toyota has something for everyone in terms of variety, shape and price. Safety is the most important aspect in Toyota, that’s why 1 million USD is being spent every hour for research and development for improving the 6 safety systems of the car and passenger. Toyota is also well known for its high quality and quick service, and the spare parts are affordable and available everywhere. Toyota has got the highest re-sell value among almost all car brands, and that is due to its durability, reliability and very high-quality vehicles.

Toyota’s Efforts is Sustainability, Innovation and Globalization
Toyota is contributing in making the environment healthier and greener, so the vehicles it manufactures are environment-friendly because it started using more natural resources. Studies showed that over 95% of waste was reduced, recycled and re-used in 2014, and with that Toyota managed to minimize the waste and energy, and maximize the efficiency of their cars. Toyota is also famous for its hybrids; cars that have fuel engines combined with electric motors. Over 2 million hybrids were sold in the USA last year. Toyota is the first to lead regarding innovation, it is aiming for a smart mobility society, so they invented the EV; an electric vehicle for one passenger that is totally battery based and doesn’t consume any fuel. Right now the EVs serve certain purposes only like in touristic areas and recreations but will soon invade the markets. Toyota’s plans in globalization are to globalize the quality and safety standards in all Toyota vehicles no matter where the vehicle is manufactured.

Toyota’s Financial Data
2015 is the most successful year in Toyota’s history during the last 10 years, keeping in mind that the year has not ended yet. The net revenues increased gradually from ¥18,994 billion in 2011 to ¥27,235 billion in 2015. The net income also increased from ¥284 billion in 2012 to ¥2,173 billion in 2015. The ROE (Return on Equity) showed an increase from 3.9% in 2012 to 13.9% in 2015. The Capital Investment has been increased gradually from ¥642 billion in 2011 to ¥1,177 billion in 2015. The R&D (Research & Development) Expenses has also increased gradually from ¥730 billion in 2011 to ¥1,005 billion in 2015.

Recommendations
Toyota committed to providing the customer with the highest quality vehicles, at the lowest possible costs, and in a timely manner. The spare parts distributors provide spare parts to dealers quickly, efficiently, and at low cost. It also successfully managed to pass the TMG’s ISO 9001/14001/50001 certifications. Based on all the facts mentioned above, we strongly recommend buying and investing in Toyota.

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