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Opportunities and threats are part of the wider swot analysis. Swot analysis incorporates strengths, weaknesses, opportunities and threats. Opportunities are external advantages accrue to a firm depending on the working of economies or other stakeholders. On the other hand, the threats are the external disadvantages that affect a firm because of its involvement with other players in the industry.

On the side of opportunities, that the Toyota Corporation can take advantage of some advantages. One of the advantages is the emergence of china as an economic power. It is surprising to note that china is also one of the fastest growing corporations for the Toyota Corporation. With continued expansion of production within the country, the company will effectively reduce logistical problems and reduce the corporation's operations budget. In addition to this, the company is also favoured by a depreciating dollar. This has had the effect of increasing sales within the United States as well as reducing its purchasing costs.

Regardless of this fact, the company is also faced with some threats. Among these threats, one is the increasing price of global fuel prices. This has had the effect of scaling down the demand for fuel guzzlers as they are being rejected with consumers more keen on purchasing fuel-efficient vehicles. In addition to this, environmental laws and doctrines are increasingly becoming a threat to the operations of the company. This is because the required levels of pollutant waste require very costly pollution abatement materials. Furthermore, the relocation of factories to less regulated states is becoming a very costly venture as well.

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