Essay - SWOT Case Analysis Toyota, Ford, Gm, and Volkswagen—some Differing Opinions...

SWOT

Case Analysis

TOYOTA, FORD, GM, AND VOLKSWAGEN—SOME DIFFERING OPINIONS ABOUT WORKING WITH SUPPLIERS

Summary

***** suppliers are part of the process, as collaborators rather than adversaries, is part ***** Toyota's philosophy. Toyota's major American competitors, ***** and Ford, have both asked the Japanese automaker to become a part of an Internet-based marketplace that ***** designed ***** act as a virtual meeting-place where automakers ***** the industry's suppliers can do business. This will presumably create more competition and drive down prices at the exchange. Although the American companies are rivals with Toyota, ***** more ***** present the exchange, the greater the chance to create economies ***** scale. The American companies hope to do business ***** efficiently ***** cut costs. Ford and GM are in competition ***** build the largest online marketplace to achieve ***** economies of scale, and both are trying to woo o*****r automakers, particularly *****.

Strengths

At present, Toyota is at the 'top of its game.' Unlike ***** maj***** American automotive firms, it has not been plagued with problems of financial solvency, over-production ***** gas-guzzling and outdated behemoth SUVs, union negotiation problems, and exorbitant pensions to retired workers. In short, relative ***** its competitors, Toyota ***** in a position of strength. It can dictate what it wants to do and what will give it an advantage in the context ***** *****s specific needs ***** company philosophy.

Toyota ***** traditionally viewed its suppliers as partners, and cultivated a close relationship ***** a core constituency. Fur*****rmore, it recognizes that cost is not simply about the price of parts. Cost also must take in***** consideration quality, lead-time, and delivery.

In the interest of those ***** supplier relationships, Toyota does not want to put competitive components on an open market *****d thinks it is better to help ***** cut costs through long-term contr*****s. American companies seem to have a very narrow view of immediate profits, but by ********** unique and competitive ***** on the open market Toyota's friendly and conciliatory relationship with its suppliers could be transformed into an adversarial relationship. The harmony and supportive service Toyota has from its ***** is a strength ***** ***** do not enjoy. Toyota is not being old-fashioned, it is pursuing an effective and unique strategy that the American companies can***** or refuse to adopt.

*****

Smaller ***** emerging suppliers may ***** the website as a w*****y of making ***** inroads, and it ***** possible that Toyota could lose a ***** to find ***** better relationship ***** new supply *****. *****s traditional *****, which enjoy ***** contracts with the company, are likely ***** see the new site as a threat. Other suppliers may like the ease ***** doing ***** in a virtual marketplace ***** gives them access to major companies eager to do business.

Not *****ing ***** be left out of the ***** 'party,' Toyota is refusing to rule the Internet marketplace option out and is hedging its *****ts. Toyota ***** considering only trading raw materials and commonly used parts through ei*****r the ***** or Ford