Opportunities and Threats Faced by Toyota Module 2-Case Study Essay

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Opportunities and threats faced by Toyota Module 2-Case Study [Pick the date]

Like any other organization, Toyota has its share of threats and opportunities which can either make or break this organization if not addressed properly. Toyota has been lately addressing environmental issues caused due to emission of harmful gases and also major cost cutting strategies required right after recent wave of recession. Lately, operations of Toyota have been disturbed due to product recalls caused due to compromised product quality and natural disasters, strict environmental policies and also because of increasing value of yen.

Current Opportunities for Toyota and what Toyota is doing to exploit them:

Alliance of Toyota and Ford

Toyota has been known for its light weight, user and environment friendly cars. Using its Hybrid technology, Toyota is providing an answer to user's worries caused by skyrocketing fuel prices. Furthermore, one must not forget the all-time famous strategic alliance between Toyota and Ford for the formation of collaborative RMV Hybrid system. Through this alliance, both companies will bring their in-house technology on board to produce an impeccable version of hybrid systems meant for SUV customers and also for light vehicles. By capitalizing on increasing demand of hybrid vehicles like Prius, Toyota can enjoy extreme advantage.

MOU signed between Toyota and BMW

In December 2011, BMW and Toyota have entered into contract which is intended for producing environment-friendly vehicles.

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The understanding is to launch vehicles in 2014 which would constitute of BMW's 1.6 liter and 2.0 liter diesel engines and Toyota produced models. This hybrid product is meant for European market as this technology promises low carbon dioxide emission which is in coherence with European Union emission regulations 2012.. The MoU further provides an understanding of doing collaborative research on lithium-ion battery technology. This alliance is a major breakthrough in the history of strategic alliances in automotive industry. This synergy will allow Toyota to get hold of BMW's diesel technology and the German OEM's own high caliber future powertrain R&D capability (Datmonitor, 2012).

Threats Faced by Toyota

Global Competition

Automotive industry has proven to be highly volatile in past five years. Major markets e.g. Pacific, Europe have been subjected to a wave of extreme market crunch. Growth has been observed but at a slow pace. This recession of course has left an impact on Toyota. Furthermore, intense global rivalry is a big threat for Toyota. Global competition by strong market players like Fiat, Ford, BMW, General Motors, and Honda can strongly affect Toyota's business.

Natural Calamities

Toyota's major production plants are mainly situated in East Japan and Thailand. Both the regions are located in a hub which is highly prone to natural disasters. In 2011, Japan has sustained intense shocks of earthquakes causing tsunami and also disruption of….....

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