Introduction Toyota Motor Corporation is a highly successful automotive manufacturer recognized globally. They have continued to gain and maintain a competitive advantage over their counterparts, despite recalls for many years. Regardless of the recalls, Toyota was quick to correct its shortcomings and continue to lead the automotive industry with its innovative measures. In this essay I will discuss the key internal factors for Toyota. Within these factors will include Toyota's core competencies, which are what they do really well compared to the competition, three of their strengths, which will include their position in the automotive market and their strong focus on research and development, and two of their executives create a strategy around these skills that helps create competitive advantages. Toyota is a dominant leader in automotive innovation. Based on this key factor, they were the only automaker listed in the top 20 on the initial public offering list (Toyota Leads the Auto Industry in Innovation, Again!, 2016). Toyota's core competencies seem simplistic, yet they are very powerful. There are two that they focus on and that is continuous improvement and respect for people. These core competencies are part of their production system, better known as the Toyota Production System (TPS). TPS is based on the philosophy of “completely eliminate all waste”. Excess inventory, defective products, and unnecessary processing steps are all inclusive when it comes to excessive waste, which ultimately negatively impacts the business as a whole. In 1924, Sakichi Toyoda created the Toyoda automatic loom, which improved productivity and work efficiency by eliminating wasteful practices and defective products. Kiichiro Toyoda believed that “the ideal conditions for creating things are most successful when machines, structures and people work together to add value without generating waste.” (The origin of the Toyota manufacturing system, they are also looking to expand by offering condominiums and apartments, as well as remodeling and renovation services. They were winners of the 2013 Good Design Award.• Reforestation and biotechnology: Toyota is focused on saving the land by promoting business related to greenery which include biomass, green roofing and improving Japanese agriculture by offering the “Housaku Keikaku” (harvesting plan) for rice growing cooperatives • Marine products – Toyota offers marine boats, pleasure boats and engines known as The Ponam series, which also received the 2014 Japan Boat of the Year award, Strong focus on research and development Another important factor that will ensure Toyota maintains a competitive edge in this industry is continuous process improvement, which is one of their core competencies. Toyota Motors has over fifteen research and development organizations around the world, and each facility has a core focus, such as advanced engineering or exterior, interior and color design. Toyota conducts all of its research and development within these facilities where the overall goal is to produce vehicles of the highest quality. Their ability to focus on research and development allows them to keep the technological edge in their products at bay, which in turn leads to innovation and