Henry (2008) observes that the second phase of the strategic planning process is to carry out a SWOT (Strengths-Weaknesses-Opportunities-Threats) analysis. This analysis explores the internal weaknesses and strengths with respect to the firm’ s external threats and opportunities. As defined by Kotler et al. (2012), strength is the unique or valuable assets that a firm possesses or any effort done well by the firm. Strength is a constructive internal attribute that can assist strategic planning managers to attain the goals of the firm. On the other hand, weakness is the of certain assets or capacities that are needed by a firm in order to perform better.
It entails the attributes that inhibit the attainment of the strategic goals of a firm. Opportunities, as noted by Griffin (2012), are circumstances within the external climate of a firm that possesses the capacity to assist strategic planning managers to attain or surpass the goals of the firm. Simerson (2011), opportunities can sometimes prompt strategic planning managers to revise the objectives of the firm’ s strategy. Lastly, threats are circumstance within the external climate a firm that possesses the capacity to hinder strategic planning managers from attaining the goals of the firm.
2.1.1Joint Alliance and Collaboration Before Toyota entered the China market, the Chinese market was a competitive market with various automakers such as Isuzu, Ford Motors, Honda Motors, General Motors as well as Kia Motors. When the Toyota Company was entering the Chinese market, the auto industry was experiencing high growth such as 1 million vehicles annually. The Chinese market apart from being expensive had customers with certain preferences and demands on vehicle models they desired.
As pointed out by Katie (2013, p. 13), the Toyota Company, which was the second world largest automaker at the time of its entry into the Chinese market, formed an alliance with FAW group as its market entry strategy.
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