Toyota Motor Company is a reputable manufacturer and distributor of motor vehicles and parts and has a significant global presence. This company has the largest market share in the industry, which stood at 10.24 % in 2019 with Volkswagen its closest competitor with 7.59%. The company’s market cap of $202.3 billion in 2019 increases its dominance and adds to its competitive edge (Premack, 2020). The reason for picking this brand is the fact that cars are durable which translates to more savings. Moreover, the company embraces safety as a top priority to ensure that the clients have a satisfactory experience with the vehicles. The other reason for preferring those car brands is the fact that it is innovative as it finds a way of improving their vehicles. The company has been at the frontline in manufacturing electric-powered vehicles that are environmentally friendly (Nie et al., 2018). Toyota is listed on the NYSE and as of 26 August 2020 the company’s stock, we trading at $134.61 (Wall Street Journal, 2020). The company’s stock has been on a steady rise in the last month. Toyota has a sizeable market share, which translates to significant revenue generation, which is quantified in Japanese Yens. A five-year trend from 2016 to 2020 indicates that the company has a favorable trend of profitability. In 2016 the company’s revenue was ¥22,708,187, in 2017 it was ¥27,621,746, in 2018, ¥29,384,077 in 2019, ¥30,224,438 and in 2020 it was ¥29,930,085 (Wall Street Journal, 2020). The analysis of this trend depicts that the company’s revenue generation is almost constant with rises and drops from one year to the next. The 2020 revenue is a slight drop from 2019, which may have been caused by the volatility in the market due to the COVID-19 pandemic. In as much as the 2020 revenue is lower than the previous year, the company reported a 17.78% increase in its gross profit margin, which stood at ¥5,322,631. These figures indicate that the company needs to do more to increase its revenue and in this way maintain its competitive edge.
References
Nie, Y., Wang, N., Guo, Q., & Shen, J. (2018). Examining Shanghai consumer preferences for
electric vehicles and their attributes. Sustainability, 10 (2036), 1-16. doi:10.3390/su10062036
Premack, R. (January 30, 2020). Tesla is on a tear and is now the world's No. 2 automaker by market capitalization. Business Insider Africa. https://africa.businessinsider.com/lifestyle/tesla-is-on-a-tear-and-is-now-the-worlds-no-2-automaker-by-market-capitalization/cl5wmt9#:~:text=Toyota%20sits%20at%20No.,market%20cap%20of%20%24202.3%20billion.
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Wall Street Journal. (2020). Toyota Motor Corp. ADR. https://www.wsj.com/market-data/quotes/TM/financials/annual/income-statement
