Nissan: Analysis Of Company

As we known Nissan is a Japanese brand name, which is famous of their high quality in electronic and enduring products. In SWOT analysis we can see how Nissan business goes and how they look in customer view. Strength: Strong Research and Development: Nissan is also known for its engineering, development directed towards performance improvement, safety, customer satisfaction, and development of new and innovation products. The company allocates significant resources to its Research and Develop operating in 65 engineering and Research & Development centers around the world.

Nissan is one of the most popular automobile brand names, which having a high global reach and they have over 1. 5 million employees globally in the world. Nissan is like a pioneer in the electric car segment having its global presence and in electronic car Nissan has proved to customer and other automobile that it’s really challenge to compare to their brand name base on their quality and technology they have. As globalization Nissan has manufacturing locations in Japan, India, Brazil, Spain, Thailand, USA, Malaysia and others countries. Therefore, Nissan production output capacity can manufacture around 4 million units.

Nissan’ brand was the fastest growing automotive brand name in 2012; Nissan’s brand was the fastest growing automotive brand in 2012, according to Interbrand. Its value rose by 30% to nearly $5 billion and became the 73rd most valuable brand in the world. However, Nissan claim this reward from Interband is from their top car seller: Teana, Leaf, Altima, Versa all of these models targeted to young generation and economic family. From this target and price they have given with their quality they have attract more customer to use their brand name. Weakness:

Declining reputation due to product recall: Nissan recalled a number of cars recently due to safety problem in November 2010. It recalled 604,500 vehicles due to faulty steering shaft and battery defects. More than 300,000 frontier pick-up trucks and more than 280,000 Xterra SUV were also recalled due to faulty steering shaft. About 20,000, Sentra units were also recalled to battery defects. In October 2010, there are 830,000 units of nine models were recalled due to problems in engine control switches. Significant product recalls negatively impacts the consumer confidence in Nissan’s roducts and brand image (Datamonitor, 2011) Although Nissan recalls comparably less cars than its competitors do, such situation still hurts firm’s brand reputation and customers loyalty.

Secondly, Nissan weakness is unclear brand. Despite long history in the automotive industry, Nissan is rarely considered as a strong brand. They are notion as unclear marketing strategies and brand development initiatives that it has implemented in the recent years. Despite efforts to compete and re-design its brand, the brand struggled in anonymity and settled in becoming a “generic Japanese brand”.

Even for Nissan’s corporate group, it is not where Nissan stands. Lack of experience in diesel technology: till this moment, diesel vehicles sold has been increase a lot compare to 2006 with 0. 4% vehicles. In contrast, diesel is very popular and its share in the overall sales has been increasing. In the end of 1th January, 2006 the number of diesel cars sold increased by 7. 5% and many people believe that the diesel market will account more than 80% of total vehicles sales in Europe by the end of 2008. Diesel technology has been proving significantly over the past few years because of reducing emission, fuel consumption and cost.

Japan (Nissan’s home country) has a low demand for diesel engines and this causes Nissan lack of experience in produce diesel technology than its competitive. Opportunities: After Nissan Leaf release shares at the Tokyo Stock Exchange was up 5. 4% to 726 yen, the highest level from 29-9 last year. CEO of Nissan, Carlos Ghosn, said electric cars could account for 10% of global car sales by 2020 and not utility-emission electric vehicle can offset its weakness is limited to distances traveled. But Mr. Koichi Nishi, equity strategist of Nikko Cordial Securities Inc. Said investors scrambling to jump into the car after the Nissan widely awaited debut.

“The product meets its commitment to environmentally friendly is always encouraging,” said Koichi said. As the increase of greenhouse affect the demand for environmental friendly vehicles also increase. Vehicles have been a major factor in intensifying greenhouse effect by discards a large quantities of CO2 and heavily polluting air. Government and customer are being aware of this negative impact and USA has given a lot of concessionaries to people who buy friendly environmental vehicles that discard less CO2.

Nissan has done well in experience of creating strategic parnerships that bring new capabilities, technology, and synergy to the firm. In this situation, many firms find ways to cut the costs. However, Nissan need to establish more partnerships, alliances, and benefit from the advantages that come with them The increasing of fuel and price is one of the most factors that Nissan like: From few years ago, Nissan has favoring fuel-efficient cars with hybrid, hydrogen or electric engines which will save money and more friendly with environmental.

The increasing fuel price would have a lot of benefit for Nissan because it encourages customers to buy such electronic cars and Nissan is already in its position to offer many car models with friendly environment engines. Threat: Sometimes, the decreasing of fuel price also has a real big effect to the sale of electronic or hybrid car. And the possible of drop of fuel price is much high when technology getting more improves and more shale gas fuels will be extracted. So for this reason, hybrid, electric and hydrogen vehicles may become less attractive to consumers.

However, most of Nissan profits come from other countries and after Japan Tsunami the exchange rate of Yen compare to other countries exchange rate has fall down and it also lead to the decrease of revenue Nissan earn. The competition between Nissan and others automotive companies will intensify in the future. Hyundai, Honda, Toyota and other car producer competitive will have to introduce new models faster and compete more on the price, quality, and design to 1 target, which can satisfy customers need and wants can earn more profits.

As the economic rising of China there are a lot of things have been affected and Nissan sell quantity also being effect. For a year, the price of steel used to produce car has increased about 30% (London Metal Exchange, 2006). Nissan has founded their own step to reduce the effect of rising steel prices. In 2000, Nissan began using hot dip zinc coated steel and converted to less expensive steel in 2002, which saved about $16 million per year (Nissan Motor Co. , 2004).

In Conclusion, Nissan have its good and bad side. They need to keep their goods and improve what they miss in market. We can see that many people leave their hope in Nissan Leaf world first electronic car and this car will build up a new face for Nissan like Mercesbenz, Audi, BWM is world’s most famous luxury car and if Nissan focus on Nissan Leaf project to produce a better technology on Nissan Leaf. Improving the strong of brand name also very important because it’s what customer believes in Nissan brand name. Nissan need to define their one target in the market like other brand name.