Complete Case Study of Toyota Company In 5 Minutes

Introduction to Case Study of Toyota

1. Background of the company

Name of company: Toyota

Year of Formation: 28 August 1937

CEO: Akio Toyoda

Products of the company: hydrogen fuel-cell vehicles, hybrid electric vehicles

Annual revenue: US$ 272 billion

Countries in which it operates: Australia, Bangladesh, India, Japan, Europe, Indonesia, Malaysia, Philippines, Singapore, South Africa, South Korea, Thailand, United States, and Vietnam

Net operating cost: $245.4 billion in 2017

Ad Expenditure: 1.44 billion U.S. dollars in the USA

Net Sales volume: 270 billion U.S. dollars, 2017

Main competitors: Ford, General Motors, Volkswagen, Suzuki, Hyundai, Nissan, Honda, FCA (Fiat Chrysler Automobiles), BMW & Mercedes.

Background of the company’s Product

The company is famous for its electric and fuel-based cars. In the market share and revenue, this stands only second to Volkswagen. The BCG matrix of the company is shown below-

BCG Matrix of the products


·         Lexus- Luxury Sedans

·         Prius Hybrid

·         Land Cruiser SUV

Question Marks

·         Scion

·         Camry / Corolla as Hybrid

·         Alternative Fuel Vehicles

·         Small cars

Cash Cow

·         Camry & Corolla Sedans

·         Innova & Venza- MPV

·         Daihatsu- small cars


·         Tundra

·         Crown, Cressida, Corona, Quails

·         Declining European markets

Figure: BCG matrix for Toyota Cars

According to Ricky, the Ph.D. expert at Myassignmenthelp. “The products of Toyota has been one of the most trusted names in automobile sectors. According to the market reports Lexus- Luxury Sedans, Prius Hybrid, and Land Cruiser SUV has been the star product of the company both for their sales and popularity. On the other hand, cars like Camry Innova and Daihatsu are said to produce most of its profits in the market. These are the small cars and the number of products sold among these cars is higher than any other products of the company. Other products like Tundra, Crown, Cressida, Corona, Quails, and Corolla has not been able to capture that amount of market in this industry.

Background of the task force environment and their interplay

SWOT Analysis

  • Efficiency and Superior productivity of the company
  • Huge brand awareness all over the globe
  • The quality and uniqueness of the products
  • Wide range of product offering
  • Considered to be the pioneer in hybrid vehicle sectors
  • There have been some cases of recalls. This has affected the business of the company hugely
  • The quality image of the company has been undermined because of the recalls
  • The company has a weak presence in emerging markets and Europe.
  • The demands of the products of Toyota is growing in markets like China, India
  • The hybrid vehicle segments are having positive growth for the company profile
  • Toyota manufactured compact vehicles and fuel-efficient vehicles. There is a growing demand of such products in some markets in Europe and growing countries
  • Competition of the automobile sectors
  • The hybrid vehicle options in the market are growing
  • The uncertain global economic conditions
  • Natural disasters could affect the JIT method
  • Increasing costs and decreasing demands in the market

PESTLE Analysis


The political factors are the one that falls under the external factors for the company. This comprises governmental policies, legal documentation, and taxes. The political power in the countries is different in nature.

As the company has international ventures, the political stability and policies influence the business endeavours of the company. In the European countries, the political issues are stabilized. But in countries like China, political influence plays a pivotal role.


The factors in the economic sections that the company has to keep in mind while doing their business are- the unemployment rate and policies, economic growth of the country, consumer confidence, interest rate, inflation, and other necessary policies.

For example, in countries like Australia or the USA, economic growth is quite impressive. Here the company has the scope for both their daily and luxury products more than the developing countries.


Social factors have influenced the business and performance of the company time and again. The main factors in the social impact are income destruction. Socio-economic status of the people, lifestyle changes, social and labor mobility, demographic changes.


The innovations in the technological sectors re always a positive part of the automobile industry. The development in the industries could accentuate the business and its scope in each part.

The innovation of hybrid vehicles and modern instruments in cars has increased the sales of the company. Changes in information technology have increased communication factors.


The tax policies of the country and the employment laws are the main things that a company has to review before doing business of any kind.

In the manufacturing of the cars, the company has to go through the safety policies of the company and apply it in the operations. There are also competition regulations of the countries which are part of legal contexts for the company.


Toyota has been trying to increase its involvement in the environment- friendly business. The company is trying to reduce the carbon emission of their cars and make the world green.

This company is serious about its CSR and environmental protection regulation of the respective countries.

2. State the Problems

  • Defective TRW Crash Sensors could be the reason for airbag and seatbelt failure while driving, this is a massive problem as it directly affects the safety of the consumers. The company cars have been time and again accused of having such problems.
  • The company has been compelled to recall some of its vehicle form the market. Recalls are bad for the company business and also for its reputation.
  • The defects of the cars make the company decide to recall them. Some of these cars are- Camry, Corolla, Tundra, Tacoma, and Sienna.
  • The use of biodegradable wires in cars was the step that was taken for the positive impact of the company. But the use of the soy-based coating in the wires of the cars made it more vulnerable for the rodents to cut.
  • This has cost the owner of the cars to have a loss of up to $9000. The company has faced some lawsuits for the use of soy-based wires and damages happen to the cars.

3. Select one of this Problem

Among these problems, the recall of a number of cars is the most damaging both for the company and the brand name.

4. Overview of the Problem with Facts

The vehicles of the company have been recalled for about 281 times. The number shows that the company cars are been subjected to various safety and performance problems a number of times.

This has damaged the image of the company. The cars that have been recalled and the reason for their recall are given below-

  1. Avalon in 2012 for airbags and seat belt failures
  2. Camry in 2018 for engine problems
  3. Highlander in 2018 for brakes
  4. Sienna in 2018 for problems in the wheels
  5. Prius C in 2018, for the electrical problems
  6. Prius in 2016 for airbag and seat belts problems

Further visit: Introducing 6 Instances When A Tire Puncture Can Be Repaired

5. Solutions

  • Clearly there are some serious problems with the technology that is been used by the company for their projects.
  • The first thing that is to be developed in the company is TRW functioning technology. The company should invest more in sensor technology for cars.
  • The second thing is the management of ideas and innovation. The Toyota cars are not quite impressive when it comes to their engine technologies. The company cars need to be upgraded immediately.
  • The changes must be done in the workforce as well. The company should focus on developing the skills of their employees.
  • The technological advancements should be incorporated into the company designs through the work of their efficient employees.
  • There is some problem with employee management or skills. This is why the company is suffering the consequences even if it has invested a huge amount in its research and development.

Author Bio: Ricky is an academic writer and consultant who has recently joined My Assignment Help as a Ph.D. expert.

His work as an SME is to provide Myassignmenthelp review to students with necessary guidance. Besides being a case-study guru, he loves to paint and travel.

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