SWOT Analysis: External Analysis of Opportunities and Threats Opportunities
Global interdependence: possible new markets
Government regulations: abroad in other countries as well as US
and the US; global warming, CAFÉ standards, safety issues
Growth of existing market: widen market
New entrants: threat of potential inclusive of generation X,Y and baby boomers
Strong economy: economy not faltering;
Changing market tastes: need for consumers still buying
continuous innovation to appeal to
Nissan’s reputation: leads the industry
Shortage of resources: workforce in reliability, performance, and design
dissatisfaction, hiring good talent
Emerging technologies: innovative through
the development of technologies for improving fuel
economy and reducing fuel emissions
This Case Paper will examine accessible information about Nissan Corporation and determine its position in the world market through a business SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). Through this analysis, we hope to see where the Nissan has been and make suggestions as to where the corporation should go to improve their bottom line, increase market share, and plan for future products to ensure their viability in the world automobile marketplace.
Nissan’s focus in establishing a multi-cultural company begins with regaining global market share. The company has learned from past mistakes and is determined to succeed, developing a common vision and a global company culture that will need to be a main driver for continued strength (Associated Press, pgs. 1-8). For instance, establishing a brand name and personality that is sensitive to nationalistic cultures. Strategic alliances and joint ventures are growing in importance in the automobile industry and Nissan is no stranger to the competition. Nissan’s mission statement delivered by Mr. Ghosn in the Automotive News World Congress in 2001, is evidenced in how the company exploits synergies to create positive alliances with other manufacturers (Ibid). For example, Nissan’s announcement to venture with Ashok Leyland to build small trucks and other light commercial vehicles in India gives them an opportunity to enter a market that in recent years has been dominated by its competitors, Toyota and Honda. This venture will produce at least 100,000 vehicles annually for sale in India and for export, as it will facilitate the construction of a plant near the southern Indian city of Chennai to manufacture and export compact cars to Europe. The deal with Ashok Leyland will broaden Nissan coverage in the Indian market in addition to providing new LCV (lightweight commercial vehicle) products for emerging markets which will sell for around $3,000.00. Ashok Leyland’s strengths in large and mid-sized trucks combined with Nissan’s strength in smaller vehicles creates a positive synergy (Ibid).
According to Mr. Ghosn, partnering globally is an opportunity and the Chinese market is no exception. China is Nissan’s third largest single market, after North America and Japan. Vehicle production has grown over the past ten years. However, the major source of growth has been the production of passenger cars (The Business Review, pg. 7). Passenger car production has doubled in the past ten years. This shift is in response to a change in market conditions and in a desire for Chinese manufacturers to enter the global auto passenger car market. Consumer demand is also increasing and in order to satisfy this demand, auto production has been increasing. The demand for autos is expected to continue (Ibid). According to the Wall Street Journal, the car craze in China has just begun. There are two factors that create possible opportunities for Nissan: 1) the country has the world’s largest population and as incomes...
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