Question 1: What is the main issue/challenge for this case?
| Strengths | Weakness |
| S1: Extensive production and distribution networkS2: Strong focus on R&DS3: Strong market position and brand recognitionS4: Product diversification. S5: Produce innovative models in a cost-efficient way | W1: Product recalls due to defect quality could affect brand image and reputationW2: Declining sales in key geographic segmentsW3: Poor allocation of resources as compared to peersW4: Lack of high technical skills of engineering designs when they have high level of skills in productionW5: Loss of control. The management failed to anticipate looming ...view middle of the document...
Exploit engineering and R&D capabilities to produce new and innovative car models(S2,05) 2. Integrate the competitive advantage of both Toyota and GM to create strong brand name and competitive position in automotive manufacture industry(S3,02) | 1. Closely monitor quality and overhaul its design and manufacturing operations to enter growing global automotive industry (W1,W4,O1) 2. Joint venture with GM cause Toyota strive for continuous improvements and enhance the sales and market share in particular geographic market(W2,02) |
Threats | ST Strategy | WT Strategy |
T1: Facing intense competition in automotive manufacturers industryT2: Appreciating Japanese Yen a major concernT3: Natural disasters could impact production structureT4: Economic recession. T5: New entrants in the same segments at lower cost and high quality | 1. Utilize R&D capabilities to produce new and innovative models in order to compete with other competitors(S2,T1) 2. Implement well-organized production system(Toyota Production System) to captured high market share in automotive manufacturers industry(S1,T1,T5) | 1. Launch a major public relations to rebuild the reputation for quality and promote the reliability and safety of vehicles in order to compete in intense competition(W1,T1) 2. Take an proactive action by taking responsibilities and fixing the quality related problems to enhance the brand image and build strong brand name and reputation in intense competition(W1,W5,T1) |