A Product Innovation Chart (PIC) is
an effective device used during the new product development process.
The PIC is also known as a mission statement and is used to remind
organizations about strategies that are there for products and processes.
We will cover four stages of the PIC process as it relates to the automobile
industry. A market analysis will be done for Toyota. For a company to be
successful, they must recognize consumers’ demands and needs that the
competitors are not catering to and capitalize. Improvements in technical
development are opportunities which can increase efficiencies in
production and increase goal results in a positive manor. Berry
stated the PEST and SWOT method is presented using PIC (Berry, 2016). A Product Innovation
Chart (PIC) will be developed to show the company’s new product strategy.
To do so, a PEST or SWOT analysis will be conducted.
The automobile industry is all over
the world and it has several large brands that are competing in the marketplace.
It is a significant part of the world’s economy. The Toyota Corporation is one of the world
leaders in automobile manufacturing. They currently operate in
several countries from the United States to Japan. Toyota
was started by Kiichiro Toyoda in 1933 and was named in 1937. The first vehicle
was released in 1935. After several
recalls, it is important for Toyota to show their consumers that all
Toyota brand vehicles are produced with care and safety in mind. Toyota is
still one of the more innovative automobile companies giving the
consumers exactly what they want.
producers reduce their prices by using low-cost production techniques and
materials. The Toyota Corporation needs to strategically plan
how to conquer the competition in the manufacturing of the vehicles.
Goals and Objectives
Toyota promises quality, safety, and
innovation. Toyota uses elements to contribute to the company’s success. The
first element is quality. Quality is the key principle that helps Toyota to
keep their commitment to their customers. The second element is safety. In this element, Toyota
collects information from actual vehicle accidents to analyze their cause as
well as the degree and description of the injuries sustained to pursuit
real safety. The third and final element is innovation. Toyota is the first to market
a hybrid and sell over 3 million worldwide. This shows that Toyota is thinking
Toyota is recognized as a well-known
brand and has several different strengths. Toyota has various global branch
offices in the world and it supports the company by having a strong market
position. Toyota’s markets for two most recognized brands Lexus and Toyota and could
be considered as great market share in different regions such as in North
America, in Asia excluding Japan, in Europe, in China, and etc. This helps
Toyota have a better competitive advantages and opportunities of growing in
global marketplace. Toyota also concentrates on Research & Development in the
global facilities in order to enhance quality of service and product functionality,
thus increasing product safety. A good strength is based on the innovation of
current products, development of new products and manufacturing process. This
strength supports Toyota in incorporating modern attributes such as technology
to current range of products and other related fields, maintaining technical
and innovative leadership in its automotive market.
The Toyota Corporation weaknesses points
out the possible internal deficiencies that hinders its growth. One weakness of
Toyota is that the global hierarchical structure prevents its flexibility to
the regional business flow due to the reduced response time. The culture pf
secrecy also hinders quick response to issues within the organization. The
massive recall system that was introduced in the year 2009 by the management
also consumes the capacity of the business that could be available for product
distribution (Thompson, 2015).
The key opportunities in the Toyota
Corporation are the technological advancement and the economic trends. The
opportunities include the growing markets in the developing nations, the high
demand for the fuel-efficient cars, the increasing interest in the advanced
electronics in automobiles and capitalizing. The growing market presents an
opportunity for increasing revenues through the market penetration (Thompson,
The competitive market presents the
greatest threat to the Toyota Corporation. The main threats include the competition with the
low-cost vehicles from the Chinese, Korean, and the Indian automobile manufacturers,
which are on the increase in the global market. Another risk to the company is
the rapid innovation from competitors like Honda, GM, and Ford. Therefore,
Toyota needs to ensure competitive advantage through innovation (Thompson,
SWOT analysis of Toyota was conducted to develop a PIC. Toyota is one of the
world’s largest automobile
manufacturing industries. Toyota is successful because recognize their
customers’ demands and needs and builds vehicles with the care and safety of
their customers in mind. Toyota conquers their competition in
the automobile industry by taking their strengths, weaknesses, opportunities,
and threats to continue to deliver the promises of quality, safety, and
innovation to their customers.