Using the SWOT Model and Multiple Enterprise Valuation Method to Explore the Influencing Factors Behind the High Valuation of Toyota

Qiutong An

doi:10.54691/bcpbm.v37i.3591

Authors

Qiutong An

DOI:

https://doi.org/10.54691/bcpbm.v37i.3591

Keywords:

Toyota evaluation; value chain, swot analysis; multiple methods.

Abstract

Toyota is the world's largest car manufacturer. It has a chain of companies that provides inputs and services to manufacturing, distribution, and sales. Toyota sells 8 of the world's 10 best-selling cars and it holds a 14% share in the US, its biggest market. By analyzing from swot model, the Toyota Motor Corporation has a high level of brand recognition and market share in more than 170 countries. Additionally, Toyota needs to manufacture more efficient vehicles in order to avoid frequent recalls; it is an expert in the high-end car market but should introduce more cost-efficient/fuel-efficient choices. assess its market value using the approach. Through a multiple-method valuation analysis, it can be seen that Toyota is an overvalued company: it uses cost and pricing strategies that have some instructive value but are still threatened by several challenges in the future auto industry. Therefore, to maximize profits and ensure sustainable growth, Toyota should leverage opportunities in global markets to strengthen production while capturing strategic value chain essentials. A key factor is developing an information technology strategy for the supply chain to reduce operating costs, improve profitability and better respond to future trends in the automotive industry.

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