Prepared by: Simchit Say-Khoo
FIN No: G1328375W
Batch: ABMD 1578A
Course: Advanced Diploma in Business Management
Lecturer: Roland Kiew
1.1 BACKGROUND INFORMATION
Nissan Motor Company Ltd, formerly known as Nihon Sangyo, is an internationally renowned automobile firm that was established in 1933 by Yoshisuke Aikawa (Nissan, 2015). Now, almost 80 years later, Nissan has proliferated in size to become one of the world’s prime automobile suppliers with an annual sales volume of 5,188,000 vehicles as of 2013, with a prodigious 6.2% in global market share (Nissan Motor Corporation, 2014). Nissan Motor Company bears a widespread sundry of products catering to the many needs and wants of different types of consumers. However, being aware that a single product is unable to please everyone, they undergo a process of Segmentation, Targeting and Positioning, dividing the market into segments of consumers with homogeneous characteristics and placing their resources to serve the needs of the different target markets in order to deliver a special benefit which would lead to consumer value. Some products are: Nissan Leaf- which is aimed to satisfy consumers that are keen to converse the environment (Pasley, N.d), Nissan Juke- for consumers seeking the thrill of adventure sports (TBWA, 2012), Nissan Next- targeting the middle class, bikers and especially the low level-income groups (Nadeem, 2009).
Here, I will expound further upon the external forces that play a part in the marketing environment. External forces have a great role in influencing the market. Regardless of how impeccable a certain entity’s marketing plan is, these forces may or may not engender a paradigm shift of profit. Opportunities and threats have to be carefully analysed and worked upon for greater assurance of stability. Therefore in order for a firm to achieve a profitable future, one must concoct a scrupulous marketing mix strategy and evaluate thoroughly the impacts of possible external forces in furtherance of safeguarding and attaining their company’s interest and goals respectively.
MACRO- ENVIRONMENT FORCES
The political environment in Japan has been rather stable throughout these few years based on the index for Political Stability and Absence of violence shows an average value of 1.01 from the periods 1996 to 2013 whereby the likelihood of the government being overthrown by means which are not in accordance within political procedures are very low (The Global Economy, 2015). This engenders Nissan to be able to continue its production and manufacturing without the fear of any unforeseen circumstances such as a sudden political reform.
Fig 1. Graph of Time against Japan’s Political State Index (The Global Economy, 2015)
The macroeconomic environment could exert a great influence on the firm’s business which they have a limited control over such as the manufacture of vehicles by the firm or the prospective buyer’s ability to purchase them. Some of these factors are inflation, taxes, interest rates, currency exchange rates and many more (Grimsley, N.d).
In the 1990s Japan experienced a recession (Powell, 2002) due to deflation of the yen. This recession continued till the early 2000s. Coupled with the recession of France towards the end of 2001, Nissan from Japan and Renault from France inaugurated a union called the Renault-Nissan Purchasing Organization (RNPO) in 2001 (Renault Nissan, N.d), so as to minimize outlays by an amalgamation of their repositories, entailing further efficiency within the organization. Additionally, based on the World Economic Outlook, global activity has been steady increasing since 2013 and presumed to proliferate during 2014-2015....
Bibliography: Gordon-Bloomfield, N. (2010, September 10). Just who is the typical 2011 Nissan Leaf Buyer? We find out. Retrieved from Green Car Reports: http://www.greencarreports.com/news/1049202_just-who-is-a-typical-2011-nissan-leaf-buyer-we-find-out
Halvorson, B. (2007, July 26). In Pictures: Top 20 Most Dangerous Vehicles. Retrieved from Forbes: http://www.forbes.com/2007/07/26/cars-dangerous-twenty-forbeslife-cx_bh_0726cars_slide_4.html
Morris, S. (2011, March 18). This is the reason why the Nissan Skyline is illegal in th USA. Retrieved from importavehicle: http://www.importavehicle.info/2011/03/this-is-reason-nissan-skyline-is.html
Nissan. (2015, N.d N.d). Corporate History. Retrieved from Nissan: http://www.nissan.co.uk/GB/en/inside-nissan/corporate/history.html
Nissan. (2015, N.d N.d). The Concept. Retrieved from Nissan GT-R 2015: http://www.gtrnissan.com/#The_Concept
Nissan Motor Company
Nissan Motor Corporation. (2014). Annual Report 2014. Nissan.
Powell, B. (2002, November 19). Explaining Japan 's Recession. Retrieved from Mises Daily: http://mises.org/library/explaining-japans-recession
TBWA. (2012, March 12). TBWA launches Nissan 's new strategy with new Nissan Juke Campaign . Retrieved from http://www.tbwa.com/news/tbwa-launches-nissans-new-strategy-with-juke/
The Global Economy
The Guardian. (2011, January 1). Environment. Retrieved from UK government launches $5000 electric car grant scheme: http://www.theguardian.com/environment/2011/jan/01/electric-car-grant-uk
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