Swot Analysis

Topics: Automotive industry, Nissan, Automobile Pages: 5 (1372 words) Published: June 23, 2013
ADVANCED DIPLOMA IN BUSINESS ADMINISTRATION
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PRINCIPLE OF MANAGEMENT
ASSIGNMENT NO.1
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The Report To Management Of Nissan

TABLE OF CONTENT|
Executive Summary| Page 3 |
Introduction| Page 4|
Strength | Page 5 – 6|
Weakness| Page 7 – 8 |
Opportunity| Page 9 – 10 |
Threat | Page 10 – 12 |
New Products | Page 12 – 13 |
Conclusion | Page 14 |
Recommendations| Page 15 - |
References| |
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EXECUTIVE SUMMARY
In the first page, SWOT analysis of Nissan will be explained more clearly. Strengths including strong financial performance, innovative culture, growing brand reputation, incentive from US market, and good service. Weaknesses including product recalls, Renault, increase time to market, and focus on cost. Opportunities including environment friendly vehicles, strategic partnerships, and increasing fuel price. And threats including China slump, sell fall in Japan, economic slump, natural disaster, competition, and appreciating yen exchange rate. The SWOT analysis will show the reality of the company. In the conclusion. According to the SWOT analysis, the report has used to be show off what the company has and has not. Final thing is recommendation. The part including weaknesses of a product of Nissan – LEAF and what Nissan should do to fix and improve the product to make it more and more better, obstacles of Nissan in China and how they can get over the obstacles, buy or build factory in ASEAN to make the market of Nissan in ASEAN more better, join venture with a company in India to create and produce products which good for Nissan’s consumer in India.

INTRODUCTION
The report will introduce about Nissan Motor Co., Ltd – Japanese automobile manufacturing company that is the one of largest companies in the automotive industry. The report including the background information of Nissan, their SWOT analysis – strengths, weaknesses, opportunities, and threats. The company was founded in 1933 named as Jidosha Seico Co., Ltd. And the company was changed name to Nissan Motor Co., Ltd in 1934. Automobiles, outboard motors, and forklift trucks are products of Nissan.

SWOT ANALYSIS
* Strengths:
* Strong financial performance
According to the annual report of Nissan (2012), the revenue of the company has been growing over the last few yearfrom 7,517,277 yens in 2010 to 9,409,026 yens in 2012. Firm’s net operating income and net profit increased as well * Innovative culture

The strategy of Nissan is invests 4.5% of their revenue to Research & Development which is the one of the sources of its competitive advantage of Nissan. It helped Nissan develop the most popular electric vehicle – LEAF. * Growing brand reputation

Nissan was the fastest growing automotive brand. It’s value “rose by 30% and became the 73rd most valuable brand in the world” (Interbrand, 2012). Nissan improved in quality, reliability, innovation and growing customer reach. * Good service

Nissan staff trained in the basic techniques to the highly technical, their responsibility does not stop at the sale but also the attentive service, answer questions, and solve problems of consumers about their products. * Incentive from USA market

Sales in US rose 5.4% while sales worldwide rose 1.4% from the previous year. Altima of Nissan has gained popularity in the U.S market and brought about higher profits for Nissan. Altima popular in the U.S than Camry of Toyota and Accord of Honda. * Weaknesses:

* Product Recalls
After 2012, Nissan has recalles 814,000 cars around the world because of the problem steering wheel.They said that they would tightening the bolts or replacing the steering wheel to fix the problem. * Increase time to market

A Nissan product prior to market needs some time to study and test. However, checking the quality of the new product takes a lot of time and money plus deposits weak, making it difficult for...

References: Ma.J and Hagiwara.Y, Nissan Posts Slowest Profit Growth Among Japanese Automakers (1), 2013, http://www.businessweek.com/news/2013-05-10/nissan-reports-slowest-profit-growth-among-japanese-automakers
Nissan Global (2013). Corporate Information. Available at: http://www.nissan-global.com/EN/COMPANY/
Nissan Release All – Nissan DAYZ (2013) http://www.nissan-global.com/EN/NEWS/2013/_STORY/130606-01-e.html
Strom.S, In Renault-Nissan Deal, Big Risks and Big Opportunities, 1999, http://www.nytimes.com/1999/03/28/world/in-renault-nissan-deal-big-risks-and-big-opportunities.html
Appendix
Financial Highlight
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