1. What is SWOT analysis, describe, defined? SWOT analysis for the case study. Identify
SWOT analysis is effective tool for management to form company’s situation analysis in order to focusing company’s marketing strategy. It indicates company’s competitive advantages and disadvantages into four parts - strengths, weakness, opportunities, and threats. Structured information in the SWOT analysis can help managers to strategic focus on how and what to form company’s marketing plans.
SWOT analysis for Nissan
Strength * Global Brand * Reliable Quality * Renault-Nissan Alliance
| Weakness * Long time for Production Innovation * Lack of diesel technology
| Opportunity * Growing Asian market * Relocate its manufacture place
| Threats * Market saturation * Unstable political relationship between China and Japan
Global Brand - Nissan is the fasted growing automotive brands in globalisation. It offers full range of private and commercial vehicles. Its brand strength provides its market share in the world.
Reliable Quality – Japanese cars are recognised as lower price and reliable quality to earn their comparative advantages in the global market. Nissan cars are part of the group.
Renault-Nissan Alliance – The alliance has provided advantages to both companies. They can move into new markets faster and with low costs because they don’t have to build new plants. The companies are collaborating on building common platforms, components and engines.
Long time for production innovation - Nissan launched two new or redesigned vehicles, in comparison to 14 in the three previous years. Compared to other Japanese automakers, the company has longer production innovation period. In the low-cost cars market, innovation is very important to stimulate market.
Lack of diesel technology - In the Japanese market, diesel accounts for only 0.4% of vehicles sold. In contrast, diesel is very popular and its share in overall sales has been increasing. Nissan lacks the technology and experience to produce diesel engines of comparative quality.
Growing Asian Market – China and India are estimated to be major growth drive in the next decade. It is necessary for Nissan to focus its market into these countries. With increasing purchase power in these countries, Nissan should take first position to earn its market share.
Relocate its manufacture place - Nissan has stepped up their policy of producing where demand exists. To relocate its manufacture place to developing country like China, Nissan can reduce its production cost, especially wage cost.
Market saturation - With overall industry sales number stagnant, the overall automobile industry has been significantly impacted.
Unstable political relationship between China and Japan – Events like Diaoyu Island argument between political channels can cause further problem like resistance to purchase Japanese goods for Chinese. Overseas manufacture and sales will be damaged due to unstable political relationship.
SWOT analysis for Volvo
Strength * Advanced Technology, preventive safety system and post-crash safety system * Volvo has strong market presence in its domestic market
| Weakness * Bi-Fuel Cars make lose
| Opportunity * China’s market * Relocate its manufacture place to reduce its cost
| Threats * Competition other premium automaker companies such like BMW, Audi, Mercedes- Benz.
Advanced Technology, preventive safety system and post-crash safety system – Volvo Company is one of the global automotive leaders. It is well recognised and respected for their advanced technologies, preventive safety system and post-crash safety system.
Volvo has strong market presence in its domestic market – One of five cars sold in Sweden is Volvo. And the number is still increasing.
Bi-Fuel Cars make lose - The company’s sales of Bi-Fuel cars have been decreasing over the years. Because weakening demand for Bi-Fuel products in market,...
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