Toyota Motor Corporation faces the significant effects of the external factors in its industry environment, as shown in this Five Forces analysis based on Porter’s model. These external factors exert forces on Toyota and influence its strategic direction. Even with the issues and challenges identified in this Five Forces analysis, Toyota remains one of the top players in the global automotive industry. Such success represents the company’s ability to withstand the negative forces in its external environment. However, as indicated in this Five Forces analysis, Toyota must continue innovating for competitive advantage against other firms.