Presentation of Nissan

Topics: Automobile, New product development, Internal combustion engine Pages: 3 (752 words) Published: March 16, 2011
I am going to analyze the case by using corporate strategies. Firstly, strength of Nissan. Nissan is a global brand, and it is the fastest growing automotive brand. In 2006, Nissan brand was valued at 3000 million dollars. Cars model include Nissan maxima , altima, Z coupe. Pathfinder and etc.. Brand strength provides competitive advantage that offset increasing competition.

Global financial position is one of the Nissan key strength . Nissan ‘s financial position in 3 key areas: profitability, solvency and liquidity. Since 2000, Nissan has a return on asset of 5% which is quit high for this size of company. Furthmore, Nissan has average of 14% revenue growth, 11% net income growth and 15% asset growth recent years. Those facts support that Nissan globally is in a strong financial position

Renalt Nissan alliance provides advantages to both companies. They can move into new markets faster and with lower costs because they don’t have to build new plants. (Renault build cars in Nissan’s plants and Nissan use Renalt ‘s plants). The companies help each others to build common platforms, components, parts and engines. And they increased purchasing power because they buy parts for six million cars for both companies. The alliance increase profitability, market size, sales.

Secondly, Weakness of Nissan. Dependence in overseas market, Nissan produce 3 milion units per year. However, more than half of units were made at abroad. That means Nissan dependent on overseas production. The major risk of increasing dependency in other market is the risk in operation, financial transaction and government policy.

Product innovation time lag: Nissan launch two new or redesigned vehicles, in comparison to 14 in the three previous years. Nissan has misjudged it model strategy. Because of rising fuel prices. Nissan has no competitive offering in this segment. Honda has civic model, Toyota has yaris model. But Nissan do not have competitive compact car.

Lack of diesel...
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