SWOT Analysis

Topics: Automotive industry, Renault, Automobile Pages: 2 (523 words) Published: May 3, 2014
SWOT Analysis
Strengths
Strategic Alliance with Renault: Nissan signed a strategic alliance with Renault in order to try and become one of the top three automotive groups in terms of quality and value of its products (MarketWatch 4). The alliance gives the companies a combined market share of over 9% in which they both have 50% interest (MarketWatch 4). Both the Companies share platforms, technologies, and best practices (MarketWatch 4). Global Operations: Renault and Nissan have been entering new territories together, such as India, in order to expand their global footprints (MarketWatch 4). The global operations provide protection against unwanted forces in specified markets, and also enable the groups to benefit from any available opportunities (MarketWatch 4). Robust Research and Development Activities: R&D activities focus on the environment, vehicle safety, information technology, and product development (MarketWatch 5). Nissan introduced the first affordable, zero-emission vehicle in the Nissan Leaf (MarketWatch 5). The strong R&D capability allows for a broad vehicle portfolio, and improves it competitive strength in the automotive industry (MarketWatch 5). Weaknesses

Declining Reputation due to Recalls: Nissan has been forced to recall a number of vehicles due to safety problems over the past few years. Vehicles that have been recalled include the Xterra, Sentra, Cube, and others. These recalls have a negative impact on the company, and lower the confidence that consumers have in Nissan’s products (MarketWatch 6). Opportunities

Expansion of Product Line-Ups: The Renault-Nissan alliance has enabled the company a great opportunity in the expansion of product line-ups. Cars such as the Nissan Leaf, Nissan Grand Livina, and the Venucia have been released in various markets around the world. All these expansions will lead to an increase in the companies reach and market share (MarketWatch 7). Strategic Investments in Zero-Emission Technologies: With...
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