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Nissan SWOT AnalysisYahaira FlattsSouthern New Hampshire UniversityApril 26th, 2019Nissan SWOT AnalysisBackground InformationNissan, whose headquarters are in Nishi-Ku, Yokohama, is one of the leading multinational automobile producers based in Japan. Founded in 1911, the Nissan company is engaged in initial planning, development, manufacture, and marketing for automobile machines and their repair parts across the whole world. The Company has an employee capacity in the range of 150,000 ("Nissan Global", 2016). Its production line and boasts of several brands such as Datsun, Infiniti, and in-house performance parameter control devices named Nismo. Nissan's core values are based on its visionary desire to enrich people's lives by interlinking the customers, partners, shareholders, employees, and the world at large by fostering trust among these entities. To achieve its vision, in its daily engagement, the Company strives to provide peculiar innovative automobile goods and services that offer excellent values to all parties of interest. SWOT analysis for Nissan Company will be discussed.Key FactorsCompany NameNissan Motors LimitedHeadquarters' (head office)Nishi-Ku, Yokohama-shiKanagawa 2208686, Japan.Phone address81 45523 5523Fax address81 45 523 5770Website turnover (JPY Mn)9,409,026Employees Range of 150,000SWOT AnalysisNissan Company is wholesomely engaged in the whole process of planning, manufacturing, strategizing, and advertising its automobile equipment, forklifts, and marine, automotive products. Due to its strong research abilities and market strategy development capability, the Company has built a wide range of vehicle calibers with an innovative technological hedge, hence enhancing its competitive index. Nevertheless, due to the increase in pricing competing and unpredictable market dynamics, it is inevitable to lower gross vehicle sales and increase inventory hence resulting in fiscal pricing of its products due to lack of monopoly.Below is the SWOT matrix of Nissan limited company:STRENGTHSWEAKNESSESWell organized research capability and development drive.Several brand portfolios. Different geographical markets.Strong fiscal-market performance.Frequent product retraction leading to weakened public image.Management issues. Poor branding.Deeming home brand value. OPPORTUNITIESTHREATSRe-furbishing of the Datsun brandImpressive outlook for the global market.Zero-emission technology focus.Untapped markets.The high global market competition.Japanese Yen appreciating concern.Increase in production cost due to stringent environmental regulations.Unpredictable natural disastersStrengthsWell Organized Research Capability and Development DriveNissan Company is well versed in its research and development drive capabilities. The Company has invested considerably high amounts of its return revenues towards research activities, which will ensure it has a market edge over its competitors. Ideally, in the year financial year 2018, a financial investment from sales profits of around 54,000 million dollars was geared towards research and development activities which marks a 7.2% of the total fiscal revenues ("Nissan Global", 2016). Some of the facets the Company focuses on in its research drive include information technology, the safety of automobile products, environmental friendliness, and product manufacturing. As a result, the Company has been able to invent several innovative categories of the product like electric cars and hybrid fuel cell technologies which are eco-friendly. In 2009, Nissan unveiled Nissan LEAF which is still a leading electronic vehicle product at the global stage. Besides, Nissan has unveiled and commercialized other electronic oriented automotive such as e-NV200 and the Infiniti van sedan concept ("Nissan Global", 2016). Thus, a strong and formidable research front has helped the Nissan Company to remain upfront in the automotive industry with new innovative technologies that augment its competitive fortitude.Several Brand Portfolios'Even though Nissan Company is majorly an automobile company, its product portfolio ranges across different fields. In addition to automobiles, the Company has diversified its production sphere by inventing forklift's, marine equipment, and spare parts. Some of the most common fabricated car models include, zero emissive automobiles, sedans, sport utility vehicle, wagons, crossover vans, heavy and light commercial vehicles. ("Nissan Global", 2016) Besides, the Company uses different brand names to market its products such as Cube, Titan, X-trail, Maxima, Lafesta, Rogue, Leaf, and Micra. Moreover, its forklift market sales network span across more than 80 countries across the globe making Nissan a global brand which ensures it cuts through different economies of the world.Heterogeneous Geographical MarketNissan Company has a broad geographic base, with its manufacturing frontiers set in more than 20 countries ("Strategic Management Insight"). In addition, more than 160 nations have access to their products and services resulting in Nissan being one of the key players in the global economic matrix due to its access to major continental markets. Hitherto to this, revenue overturns have been diversified across the globe resulting in increased financial returns. In turn, this cushions the Company from unfavorable economic conditions in some markets, resulting in the Company enjoying a stable returns scale in both emergent and mature markets.Strong Fiscal-Market PerformanceOver the past few years, Nissan Company has witnessed consistent fiscal performance. For example, in 2012, the Company's financial revenue overturns increased by a margin of 12% from 95,243 million dollars to about 120,000 million dollars. Also, the gross operating cost grew by a margin of 33% while the net income trebled to about 537,000 million dollars ("Strategic Management Insight"). As a result, a robust financial return revenue enhances the operational efficacy and strategic positioning apart from fostering growth.WeaknessesFrequent Product Retraction Leading to Weakened Public ImageNissan Company has issued several product retractions, which in turn has declined its public image. Over the years, several brands such as Altima sedans, pathfinder, Xterra, and frontier have been recalled due to their inability to meet specific design demands, for instance, toughness and durability. In 2012, Nissan Company recalled the juke brand due to un-complete welding in its design ("Strategic Management Insight"). Earlier in 2011, more than 30,000 Sentra cars were retracted from the market due to a faulty design in their battery system that could cause the engine to stall ("Strategic Management Insight"). Further, in the same year, Nissan recalled 120,000 juke crossover SUVs due to a faulty door locking system. Continuous and significant product retraction like these deter the Company's public image and reduce customer's confidence in Nissan's products. Management IssuesNissan Company has been rocked with financial scandals over the recent past. The arrest of Carolos Ghosn, the chairman of the Company, oversea dal, has weakened the Company's corporate image and governance structure. The capture of Carolos Ghosn has revealed several struggles and internal disputes within the Company's board of directors ("Strategic Management Insight"). As a result, the relationship between the Company and its internal partner organs like Renault weakened. Despite several measures being put in place to overcome these challenges, Nissan Company has a long way in terms of global corporate governance. Poor BrandingDue to inferior marketing and advertisement strategies the Nissan Company has suffered poor brand awareness across the world. In 2015 alone, the Company has utilized more than 3 US billion dollars in its advertisement drive ("Strategic Management Insight"). Nevertheless, after carrying out a fiscal audit of the impact of the advertisement, the money spent couldn't be substantiated, when compared to equivalent market matrix. Nissan is not considered among the top five automotive brands implying that there is unfavorable brand imaging across the world. The Decline in Home Brand Value.Over the recent past, Nissan's sales have gradually reduced in Japan. Furthermore, due to subsequent product recalls, people in Japan have mostly lost faith in the brands' durability and quality features ("Strategic Management Insight"). Research by NTH in japan shows that these drops translate to about 300 million US dollars loss annually.OpportunitiesRe-Furbishing of the Datsun BrandIn a bid to enter the ultra-low-cost car design segment Nissan Company has re-launched the Datsun brand. Ideally, this brand has been re-introduced in wider market scopes from Indonesia, Russian, India, and African to meet the cost demand curve of medium earners. By re-introducing cheaper car brands, Nissan aims at penetrating fast-growing markets marked by middle-income earners ("Strategic Management Insight"). In India and Russia, Nissan has a market share of about 43% and aims at increasing its influence in emerging markets ("Strategic Management Insight"). Therefore, the re-launching of cheaper car brands has presented Nissan with an opportunity to grow its market influence in the automotive industry.Impressive Outlook for the Global MarketOver recent years, the introduction of new cars into the global market is marked by moderate growth. Market dynamic forecasts suggest that in four years, this growth will increase in repeated measures due to the introduction of cheaper cars into the automobile business ("Strategic Management Insight"). With an anticipated CACR of 9.2%, the market revenues are expected to shift from 1,430 million dollars to around 2,150 million dollars ("Strategic Management Insight"). Each year Nissan introduces new brand car models that serve to attract a considerable amount of the global revenue share. These models include a fully redesigned Nissan Latino, Venucia R50 car, new Serena S-hybrid in japan ("Strategic Management Insight"). Furthermore, at the Tokyo auto salon exhibition, Nissan introduced the Nismo car model, which is a unique high-performance automotive machine. Therefore, the sharp public image in addition to refurbishing and re-launching new automotive models each year provides Nissan with an opportunity for global growth in the automotive industry. Zero-Emission Technology FocusNissan Company is one of the largest producers of eco-friendly cars with its research and development drive focused on innovating automobiles with zero emissions. In the Company's, drive to ensure the stability of the market structure of the electric vehicles, Nissan has signed several agreements amounting to 60 contracts around the world to prepare markets for hybrid electronic cars ("Strategic Management Insight"). In its development strategy, Nissan has launched several eco-friendly brands such as Nissan LAEF 2012 and an all-electric premium car Infiniti. Nissan Company plans to manufacture and sell over 1.5 million hybrid electronic vehicles yearly in a bid to breach the demand gap; balance consumer needs and satisfy pre-existing regulations. Therefore, Nissan Company s able to diversify its product portfolio globally, as a result of its investment in zero emissive technologies. Untapped MarketsAfrican countries present some of the emergent economies. With the rise in the number of middle-income earners, the desire to own automobiles is going to increase. Nissan Company has set different up different market divisions in African countries like Kenya and Nigeria, which boasts of massive economic growth in the recent past ("Strategic Management Insight"). The Company has also made efforts to establish its market influence in other upcoming automobile markets like Mexico, Indonesia, and Brazil.ThreatsThe high global market competition. There is high competition in the automotive world. Companies such as Toyota Motors, Suzuki motor, general motors, Volkswagen, Ford Company, Yokohama motors hand Chevrolet among others, foster a severe competition in the automobile markets (Tukdeo, 2015). Ideally, this competition is expected to intensify as more companies and world economies move towards globalization and consolidation of economic resources in the general worldwide automobile industry. Several factors influence global industrial competition in the automotive sector include brand qualities and features, innovation and development timelines, and product market prices. Reliability and durability, safety and security, fuel cost and consumption capacity, customer service delivery, and product payment terms. As a result, of increased market competition, general market sales have gone down with an estimated increase in inventory cost for the Nissan Company. Furthermore, this has increased pricing pressure for the Company. To remain economically viable and competitive in the automotive market, the Company has occasionally lowered the prices of its products, hence influencing its financial condition.Japanese Yen Appreciating ConcernNissan Company offers its services in more than 120 countries around the world with its manufacturing base in over 20 countries. Besides, Nissan Company procures and purchases its raw materials from different countries that have different tax rates. Since the Company is exposed to different economies, it is bound to experience fluctuations in the forex exchange markets against the Japanese Yen. Generally, since the total yearly revenue overturns are consolidated in Japanese yen, its appreciation against other worldwide currencies immensely affects their fiscal results at the end of the year (Tukdeo, 2015). The company’s competitiveness is adversely affected when the money of the countries where their production plants are located appreciates. Furthermore, the valuation of the Nissan Company may be negatively affected if the Japanese Yen appreciates against the US dollars due to adverse material control.Increase in Production Cost Due to Stringent Environmental RegulationsNissan Company operated within different environmental jurisdictions across the world. Several countries have set various statutory measures to regulate the level of atmospheric emissions from companies, fuel consumption and pricing, noise levels, safety, and conduciveness of its manufactured commodities. For instance, in Japan, there exist several regulations such as, the air pollution statutory law, road usage law, and total emission reduction of nitrogen oxides from vehicles that regulate automobile emissions (Tukdeo, 2015). Similarly, in the United States, the clean air act protection agency directs environmental arms to enforce air quality standards by monitoring and controlling emissions from automobiles. Furthermore, these regulations are subject to change hence becoming stricter. Thus, the measures adopted across different regions to control the level of atmospheric emissions can result in increased production cost for the development, testing, manufacture, and operation of Nissan automobiles. Further, this affects the total cost of operating margins for the Company.Unpredictable Natural DisastersNissan Company has production facilities across more than 20 countries worldwide (Tukdeo, 2015). Due to the different weather conditions experienced across the world, Nissan's manufacturing centers are prone to experience natural disasters such as earthquakes, heavy rains. ("Nissan Global", 2016) As a result, the manufacturing, processing, and marketing of the Company's products are majorly affected.Prioritized Listing: Exploitable Internal StrengthsWell Organized Research Capability and Development DriveDue to the massive technological advancements in the automotive industry, research and development are one of the significant facets the Company can exploit. The automotive world is undergoing rapid innovations and events which are geared towards achieving an eco-friendly world. As a result of investing in research and innovation, Nissan has become one of the most significant players in the electronic vehicle production. Furthermore, due to the Company's extensive research, new hybrid technologies have been introduced into the automobile industry. These technologies include the development of light materials with high formidability and high tensile strength, leading to an increase in fuel consumption efficiency. Thus, if Nissan company is to remain viable and competitive in the automotive industry, research, innovation, and development should be its highest priority. Several Brand Portfolios'Nissan Company produces a range of products that span from automobiles, forklifts, marine equipment's and their spare parts. As a result, the Company has been able to tap into several markets across different domains. Therefore, Nissan has a massive capacity to diversify its line of production even further due to its robust production capacity and financial capabilities.Broad MarketDue to flexibility in their products, Nissan has been able to breach several market gaps. Nissan has expanded its network base across China, Mexico, India, South America, Europe, and Africa. There are still more untapped markets across the world which the Company can exploit. Prioritized Listing: Weaknesses to MitigateFrequent Product Retraction Leading to Weakened Public Image.Nissan Company has recalled several brands of automobiles as a result of faulty design specifications. As a result, the Company's public image has weakened over time, with customers losing confidence in the brand. For the Company to remain afloat, more emphasis should be put on the design and testing of the automobiles before being unveiled into the market.Management issues. Management issues can be resolved by employing new emergent ways of management, which will result in improved corporate image. Poor branding.Improving the quality of the advertisement and using new methods of public awareness can increase the sales of the Company by creating a rapport with the customers.Final Company AssessmentAs revealed in the SWOT analysis above, Nissan Company enjoys several internal strengths such as a well-organized research capability and development drive, several brand portfolios’, geographical markets' broad, and strong fiscal-market performance. When these strengths are exploited, Nissan Company will continue to serve the automotive industry on a large scale across the globe. Nevertheless, the Company has several internal weaknesses such as product retraction leading to weakened public image, management issues, poor branding, and deeming home brand value which, can be mitigated. Besides, Nissan Company is exposited to several opportunities which, as well, can be exploited. Thus, Nissan Company will remain to be a globally competitive brand in the automobile industry.ReferencesNissan Global (2016). Alliance Facts & Figures: Retrieved from Alliance2016_GB.pdf Strategic Management Insight (2016). Ford SWOT analysis, 2016. Retrieved from , R. (2015). International business assessment of Renault/Nissan, Japan. ................
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