One of Toyota’s most popular product lines of all times Toyota Corolla is their line of compact and sub-compact SUV ’s. The vehicle was launched for the first time in the year 1966 and it went on to become the world’s top-selling vehicle in that category in the year 1974.
The latest version of the car is called as Toyota Corolla Altis and is priced in the range of INR 15 -19 lakhs. The car is available in both the petrol and the diesel variants and has been one of Toyotas top selling cars of all times. The car which has been on the market for more than four decades now has sold more than 35 million units and is seen as one of the most iconic Japanese cars of all times.
Strengths in The SWOT analysis of Toyota Corolla
Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of Corolla:
- Reliability: There was nothing special about a Toyota Corolla in comparison to its competitors most of which were Italian cars. But the car scored high on reliability and performance and customers found it to be high on driving comfort and safety which were reasons for its success. The car has always been perceived as reliable and safe family car.
- Consistent sales track record: Toyota Corolla has been one of the world’s top-selling cars and has even crossed Volkswagen Beetle. The car has currently sold 32 million units which means 2160 cars each day for the last 40 years a record which no other car maker can easily cross.
- Toyota: Toyota has been a pioneer in manufacturing technology and has always been churning out top quality vehicles at minimal costs using the Toyota Production Systems. In addition to this, they have also used reliability engineering and lean methodologies to improve productivity and lower costs.
- Simplicity: One reason why the car became popular was that of its simplicity in design.When all other carmakers were talking about style Toyota Corolla was more functional in its appeal and owners started viewing it more like a household appliance which in turn increased sentimental attachment to the car.
Weaknesses in The SWOT analysis of Toyota Corolla
- Inability to garner volumes: Bigger cars have to always look at smaller segments since mass markets are not for them. This Toyota Corolla has not been able to give the company the necessary volumes in the recent years as competition has also picked up in the compact and sub-compact categories.
- Excessive focus on the US: Toyota Corolla was one of the biggest success stories amongst the compact category in the USA and thus the model has primarily been focused towards the region. However, the slowdown in the market has affected the sales of bigger cars in the US and this will not be good news for Toyota Corolla.
- Change of design: Toyota Corolla was a successful model owing to its simple and functional design. However, in the later versions, the company tried to incorporate more style and taste to its design which was not in sync with what the customer had in mind for the Corolla. This diluted the market share for the vehicle.
- Global design: The current trend in customer preferences mandate region-specific features and design for cars of all categories. This is an area where Corolla suffers since the design of the car is more global than local. This has also been stated as a reason why the car could not become popular in emerging economies like India and China.
Opportunities in The SWOT analysis of Toyota Corolla
- Untapped rural markets in India: The villages in India because of their road condition will always be suited more for larger vehicles than small to mid-sized passenger cars. There is a huge untapped market here which can be targeted
- Changing Customer Needs: The customer needs are changing continuously and currently there is a growing need for cars which have lots of features but are high on safety and comfort.There is also a growing number of customers who are willing to pay more for higher quality vehicles. This is what Toyota needs to focus on.
Threats in The SWOT analysis of Toyota Corolla
Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the threats include:
- Competition: The company faces stiff competition from brands like Honda, Toyota, Nissan, Chevrolet,.Renault and Ford as well as from regional players like Maruti in India.
- Need for hybrid cars: The next biggest trend in cars will be hybrid and green cars since more and more customers are looking out for driving options that are environmentally savvy. This can prove to be a potential threat to SUV’s and compacts.