External environment analysis summary
This in turn created a gap between sales expected and the sales gained. Another factor having a main influence on Toyota is the technology (Al-Laham2005). The enhanced computed use inside cars has led towards increasing the durability of cars. This technology allows cars to be repaired easily and this further leads to another problem. Enhancement of durability leads to increasing the life of the cars that customers are to buy. If the durability is enhanced then customers will buy cars at a wider time period in turn causing loss to automobile companies in the international realm.
VRIO checklist has been selected in order to reflect on resource based view of Toyota.
VRIO Analysis of Toyota
The analysis of VRIO is a significant way of comparing the particular resources of more than one organization for determining that seem to be strong with respect to their platform of market along with the ones having brighter future (Barney 2002). The analysis of VRIO is referred to as Organized for exploitation, inimitable, rare and value.
The production system of Toyota is on the basis of production that is just in time. Based on this system, vehicles had been built over immediate demands of the market instead of anticipating demands from the future. This unique and different strategy had been created for cutting the amount of costs and the elimination of waste. Based on this, the following points can be drafted in the analysis of VRIO (Strott, 2009):
Valuable: It can be considered valuable as it has been known for keeping low costs of production.
Rare: It can be considered as being rare due to the fact that even though the production of just- in- time is a famous strategy utilized by organizations across each and every industry, the methodology of Toyota being used is still extremely unique and rare.