The Toyota Motor Company also faces its fare share of weaknesses however. A lot of them stem from the enormous size of the company and the global level of its operations. The world market for cars is already overheating, with some commentators suggesting that there is a situation of oversupply. In such a condition, every major brand wants its automobiles to be preferred by customers. Since Toyota relies on the Japanese and US market for the major part of its revenues, it is prone to political and economic changes as well as exchange rate fluctuations.
This is already being demonstrated by the financial crisis which has hit the United States and Japan particularly hard and thus the company has seen its profit dropping. This weakness is being tackled by the company by exploring new avenues in the emerging Chinese market. However, this will take a while before it truly allows Toyota to become diversified in terms of reliance on specific markets. Another weakness of the company stems from its strategy of high volume car manufacturing. In this business, the company needs to keep producing cars to maintain operational efficiency.
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