SWOT ANALYSIS

SWOT analysis is a tool for auditing an organization and

its environment. It is the first stage of planning and helps
marketers to focus on key issues. SWOT stands for
strengths, weaknesses, opportunities, and threats.
Strengths and weaknesses are internal factors.
Opportunities and threats are external factors.

In SWOT, strengths and weaknesses are internal

factors.

A strength could be:

• Your specialist marketing expertise.

• A new, innovative product or service.
• Location of your business.
• Quality processes and procedures.
• Any other aspect of your business that adds value to
your product or service.

A weakness could be:

• Lack of marketing expertise.

• Undifferentiated products or services (i.e. in relation
to your competitors).
• Location of your business.
• Poor quality goods or services.
• Damaged reputation.

In SWOT, opportunities and threats are external

factors.

An opportunity could be:

• A developing market such as the Internet.

 • Mergers, joint ventures or strategic alliances.
• Moving into new market segments that offer
improved profits.
• A new international market.
• A market vacated by an ineffective competitor.

A threat could be:

• A new competitor in your home market.

• Price wars with competitors.
• A competitor has a new, innovative product or
service.
• Competitors have superior access to channels of
distribution.
• Taxation is introduced on your product or service.

SWOT Analysis Toyota

Strengths.
• New investment by Toyota in factories in the US and
China saw 2007 profits rise, against the worldwide
motor industry trend. Net profits rose 0.8% to 1.17
trillion yen ($11bn; £5.85bn), while sales were 7.3%
higher at 18.55 trillion yen. Commentators argue
that this is because the company has the right mix of
products for the markets that it serves. This is an
example of very focused segmentation, targeting
and positioning in a number of countries.
• In 2009 Toyota knocked its rivals Ford into third spot,
to become the World's second largest carmaker with
6.78 million units. The company is still behind rivals
General Motors with 8.59 million units in the same
period. Its strong industry position is based upon a
number of factors including a diversified product
 range, highly targeted marketing and a commitment
to lean manufacturing and quality. The company
makes a large range of vehicles for both private
customers and commercial organizations, from the
small Yaris to large trucks. The company uses
marketing techniques to identify and satisfy
customer needs. Its brand is a household name. The
company also maximizes profit through efficient
manufacturing approaches (e.g. Total Quality
Management).
Weaknesses
• Being big has its own problems. The World market
for cars is in a condition of oversupply and so car
manufacturers need to make sure that it is their
models that consumers want. Toyota markets most
of its products in the US and in Japan. Therefore it is
exposed to fluctuating economic and political
conditions those markets. Perhaps that is why the
company is beginning to shift its attentions to the
emerging Chinese market. Movements in exchange
rates could see the already narrow margins in the
car market being reduced.
• The company needs to keep producing cars in order
to retain its operational efficiency. Car plants
represent a huge investment in expensive fixed
costs, as well as the high costs of training and
retaining labour. So if the car market experiences a
down turn, the company could see over capacity. If
on the other hand the car market experiences an
upturn, then the company may miss out on potential
sales due to under capacity i.e. it takes time to
accommodate. This is a typical problem with high
volume car manufacturing.
Opportunities.
• Lexus and Toyota now have a reputation for
manufacturing environmentally friendly vehicles.
Lexus has RX 400h hybrid, and Toyota has it Prius.
Both are based upon advance technologies
developed by the organization. Rocketing oil prices
have seen sales of the new hybrid vehicles increase.
Toyota has also sold on its technology to other motor
manufacturers, for example Ford has bought into the
technology for its new Explorer SUV Hybrid. Such
moves can only firm up Toyota's interest and
investment in hybrid R&D.
• Toyota is to target the 'urban youth' market. The
company has launched its new Aygo, which is
targeted at the streetwise youth market and
captures (or attempts to) the nature of dance and DJ
culture in a very competitive segment. The vehicle
itself is a unique convertible, with models extending
at their rear! The narrow segment is notorious for it
narrow margins and difficulties for branding.
Threats.
• Product recalls are always a problem for vehicle
manufacturers. In 2005 the company had to recall
880,00 sports utility vehicles and pick up trucks due
to faulty front suspension systems. Toyota did not g
ive details of how much the recall would cost. The
majority of affected vehicles were sold in the US,
while the rest were sold in Japan, Europe and
Australia.
• As with any car manufacturer, Toyota faces
tremendous competitive rivalry in the car market.
Competition is increasing almost daily, with new
entrants coming into the market from China, South
 Korea and new plants in Eastern Europe. The
company is also exposed to any movement in the
price of raw materials such as rubber, steel and fuel.
The key economies in the Pacific, the US and Europe
also experience slowdowns. These economic factors
are potential threats for Toyota.

Toyota has become the fourth biggest automaker in

North Amercia.

Bibliography:-

Toyota’s own official site

Toyota – wiki

SWOT analysis for NANO

Strengths:
• First innovation – Set of benchmark – 41 patents for
innovation

• Brand Name

• Tested successfully by for crumple zones

• Cheapest and stylist

• Eco – friendly & business model

• High fuel efficiency , all whether vehicle

• Resources and capabilities ( people & raw material )

• Variomatric gear system- magnifies forum

• Space – internal 21% more than Maruti 800

External 8% less than Maruti 800
WEAKNESSES:

• No modern facility like – ABS, PS, AC etc

• Less boot capacity

• No headlight levelers

• Not fit for hilly areas

• Poor fraction control

• Poor engine cooling & hence over heating

• Small tyres

• Window wind down by hands

• No passengers side mirrors

• Fiber body

• Low suspension power

• Low engine capacity

• Light vehicle
OPPORTUNITIES:

• World wide appeal

• Bikers can be motivated

 • Create employment

• Use in place of Auto rickshaw

• Second hand market can be motivated

• Diesel and electric Variance

• Developing low price engine oil

• Royalty
THREATS:

• Reva an electronic car

• Traffic problem

• Government can increase taxes in metro cities

• Rising cost of Raw materials

• Bad impression due to late date in market

• Competitors like – Bajaj, Honda Siel

BOSTON’S CONSULTANCY GROUP –

MATRIX
The BCG matrix method is based on the product
life cycle theory that can be used to determine
what priorities should be given in the product
portfolio of a business unit. To ensure long-term
value creation, a company should have a portfolio
of products that contains both high-growth
products in need of cash inputs and low-growth
products that generate a lot of cash. It has 2
dimensions: market share and market growth. The
basic idea behind it is that the bigger the market
share a product has or the faster the product's
market grows the better it is for the company.

• Although the BCG matrix is the oldest of all the

matrices, it is still the best known and the
most common portfolio matrix to be taught
around the world.

• Comparisons can be made using the matrix to

assess the relative growth rate of businesses
against the industry average and to check the
portfolio for financial balance.
• The BCG matrix is simple and elegant. As a
graphic device; it is fun to use and drives
decision-making.
• The principles of portfolio planning are correct
and applicable at SBU and segment level within
business units
• Combining portfolio planning with shareholder
value at SBU level is strongly recommended
• The BCG matrix complements further portfolio
analysis
• It remains a useful and quick guide to
resource allocation by market or product for a
company or competitors.
• The matrix is a simplifier of a host of business
factors by selecting two as the main focus –
growth and market share and shows simply and
vividly how to apply them to develop strategies.

MARUTI SUZUKI
Maruti Suzuki India Limited, a subsidiary of Suzuki
Motor Corporation of Japan, is India's largest
passenger car company, accounting for over 45%
of the domestic car market. The company offers a
complete range of cars from entry level Maruti-800
and Alto, to stylish hatchback Ritz, A star, Swift,
Wagon-R, Estillo and sedans DZire, SX4 and Sports
Utility vehicle Grand Vitara
It was the first company in India to mass-produce
and sell more than a million cars. It is largely
credited for having brought in an automobile
revolution to India. It is the market leader in India
and on 17 September 2007, Maruti Udyog Limited
was renamed Maruti Suzuki India Limited. The
company's headquarters are located in Delhi.

New Delhi, Oct 1 (IANS) Indian automobile

manufacturers reported robust sales in
September, helped by high disposable incomes,
low-cost loans and new launches ahead of the
festival season.

Market leader Maruti Suzuki reported its highest-

ever total monthly sales of 108,006 units - a 29.6
percent increase over 83,306 units for the
corresponding period last year.

'This is the highest ever total monthly sales by the

company. Previous highest was 104,971 units in
August 2010,' it said in a statement.

According to the company, September 2010 was

also the fourth time the company's monthly sales
crossed 1 lakh (100,000) mark.

Sales of compact car A2 segment comprising of

Alto, Wagon-R, Zen, Swift, Ritz and A-Star grew at
31.3 percent and stood at 68,921 units over the
corresponding period last year, while it registered
a massive growth of 43.2 percent sales of its mid-
sized (A3) segment comprising SX4 and D'Zire at
10,531 cars, the statement said.
BCG MATRIX OF MARUTI SUZUKI

STAR: The Company has long run opportunity for growth

and profitability. They have high relative market share
and high Growth rate. SWIFT, SWIFT DESIRE AND ZEN
ESTILO is the fast growing and has potential to gain
substantial profit in the market.
QUESTION MARK: There are also called as wild cats
that are new products with potential for success but
there cash needs are high and cash generation is low. In
auto industry of MARUTI SX4, GRAND VITARA, ASTAR
there has been improve the organization reputation. As
they want successful not only in Indian market but as
well as in global market.

CASH COW: It has high relative market share but

compete in low growth rate as they generate cash in
excess of their needs. MARUTI 800, ALTO AND WAGNOR
have fallen to ladder 3 & 4 due to introduction of ZEN
ESTALIO and A STAR.
DOG: The dogs have no market share and do not have
potential to bring in much cash. BALENO, OMINI, VERSA
There business have liquidated and trim down thus the
strategies adopted are that are harvest, divest and drop.

Star Question mark

SWIFT MARUTI SX4
SWIFT DZIRE GRAND VITARA
G ZEN ESTILO ASTAR
R

W
Cash Cow Dog
MARUTI 800 BALENO
T ALTO OMINI
H WAGON R VERSA

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