SWOT Analysis of Nissan

Topics: Renault, Management, Strategic management Pages: 12 (3211 words) Published: September 29, 2015
Business Management 3 Assignment
Student Name: Damian Masterman
Student Number: M89472
Submission Date: 18 August 2015
Page 2 of 12
Notes for SWOT analysis of Nissan
Strengths
• Investment to develop affordable zero-emission vehicles, including the Nissan LEAF •We have developed a capacity for responsiveness to crises that our competitors perhaps do not have. •Their diversity within the company automatically allows them to respond to various situations differently. •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. The alliance gives the companies a combined market share of over 9%. Both the Companies share platforms, technologies, and best practices •Robust Research and Development Activities: R&D activities focus heavily on the environment, vehicle safety, information technology, and product development. Nissan introduced the first affordable, zero-emission vehicle in the Nissan LEAF. The strong R&D capability allows for a broad vehicle portfolio and selection, it improves its competitive strength in the automotive industry. The Nissan LEAF, has around 61,000 sales in the United States since its launch four years ago. It is number one in the market (and) number one in the world. •Currently leading the Electronic Vehicle market, ahead of Volkswagen and Kia. •Developing new leaders through systematically selecting their highest performing team members to participate in comprehensive leadership development programs. •Full input and participation from the ground level up. Ghosn makes a point of it to solicit advice from a broad array of backgrounds, in order to have a plan that will apply to a wider number of people – this raises the likelihood of success. •Global Operations: Renault and Nissan have been entering new territories together, such as India, in order to expand their global reach. The global operations provide

Business Management 3 Assignment
Student Name: Damian Masterman
Student Number: M89472
Submission Date: 18 August 2015
Page 3 of 12
protection against unwanted forces in specified markets and also enables the groups to benefit from any available opportunities. Weaknesses
•Although Nissan‘s cars are becoming better and better in variety and quality, Nissan still lacks of the power in luxury cars. •Declining Reputation due to Recalls: Nissan was recently 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’s image, and lower the confidence that consumers have in Nissan’s products. •Lack of Diesel Technology: In the Japanese market, diesel accounts for only 0.4% of vehicles sold (Rowley, 2006). In contrast, diesel is very popular in the rest of the world & its share in overall sales has been increasing steadily. Diesel technology has been improving significantly over the past decade and is now reducing emissions, fuel consumption and cost. As Nissan’s home country has a low demand for diesel engines, Nissan lacks the technology and experience to produce diesel engines of comparative quality. Threats

•Competition in the Global Automotive Market: The automotive industry is highly competitive & Nissan faces fierce competition with companies such as Toyota, Honda, Volkswagen, Kia and other big automotive companies. Competition is set to increase with the continuing globalization of the car industry. With this increase sales may go down and inventory increase which will push the financial stability of this company even further down. •Tightening Emission Standards: The EU Commission and EU Parliament have been adopting increased stringent emission standards which in the near future could result in additional costs for the product development, testing, and manufacturing operations of...

Bibliography: http://www.mbaskool.com/brandguide/automobiles/1307-nissan-motors.html
http://www.nissan-global.com/EN/DOCUMENT/PDF/AR/2008/AR08_e_p30_31.pdf
http://www.strategicmanagementinsight.com/swot-analyses/nissan-swot-analysis.html
http://www.bdlive.co.za/business/
http://en.wikipedia.org/wiki/Management
http://www.businessdictionary.com/definition/business-management.html
http://managementinnovations.wordpress.com/2008/12/03/define-management-its-functions/
http://www.mindtools.com/pages/article/newTMC_05.htm
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