The paper “ Nissan Motor Company’ s SWOT, Market Analysis, and Strategic Choices" is an inspiring version of a case study on marketing. Nissan Motor Company Ltd is a multinational motor maker whose headquarter is situated in Japan. The company along with its various subsidiaries, largely designs, produces and sells automobile products and services. The company also engages in offering financial services to its customers. The company operates in Canada, South Africa, Spain, United Kingdom, Japan, and France. About 80% of the sales within the company come from outside of Japan.
Nissan Motor Company has a well defined global partnership with Renault for automobile production as well as distribution and automotive financing. Renault holds a 44% stake within Nissan Motor which constitutes the Renault Nissan Alliance which is mainly focused on manufacturing all designed electrical vehicles. The company conducts its operations in the main segments namely; sales finance and automobile. Nissan Motor uses the strategy of getting big through going small. Through its designed small car initiative, the company manufactures low cost and fuel-efficient small cars with safety, standard comfort, performance and style (Yoshiro and Fagan 2003).
The various renowned Nissan models include Sentra and Maxima cars; Infiniti upscale sedans and Altima, pickups, sports cars as well as SUVs. The company is considered to be the biggest manufacturer of forklifts. The company well-established strategy of working to ensure that a safe car is manufactured. 1.1 SWOT Analysis Strengths Possession of a global brand Global financial position Well established alliances Weakness High dependency in overseas markets Lack of a proper diesel technology Time lag in product innovation Opportunity Great Asian market Relocating its manufacturing plant so as to reduce cost Threats Rising of prices in commodity Motor market saturation Great cross-cultural disharmony 2.0 Market AnalysisAccording to Yoshiro and Fagan (2003), the manufacturer of the automobile in large volumes began in the early 1890s in Western Europe with the USA commencing the production of both gas and electric automobile.
Initially, due to the low fuel prices, the US was producing big cars but after the fuel prices increased drastically, the US had to compete with Japan Nissan Motor Company who succeeded in manufacturing cars that were fuel-efficient. It is from this time that marketing, prices, customer satisfaction, and design become important aspects of the automobile market.
The manufacturing of fuel-efficient cars made Nissan Motor Company is the world leader within the US market (Yoshiro and Fagan 2003). This potential growth in opportunities led to global overcapacity in the automobile which in turn led to the acquisition and merges such as Nissan Motor and Renault Company. It is quite evident that an increase in global trade has facilitated high competition, especially within the automobile industry. With the current global recession, the automobile sector is largely suffering from bad economic spending. As the financial crisis gradually increases consumer weakened confidence and credit availability have to lead to a drastic decline in the sales of vehicles.
Consumer spending, especially within the automobile, has fallen to an annual rate of 4%. The current credit environment has widely limited automobile finance companies such as Nissan to access securitization markets and public debt thus impairing the ability of the company to support both dealers and consumer financing needs (Morck and Nakamura 2004). 2.1 Nissan Motor competitor analysis There is great competition which lies in the automobile industry. Nissan Motor Company operates within fuel-efficient motor vehicles.
This analysis compares the Nissan Motor Company with two other automobile in Asia which is Suzuki Motor Corporation (whose sales in the year 2010 was an approximate value of 2.47 trillion Japanese yen which calculate to *^% of four-wheeled cars) and Honda motors Company Limited (whose sale was 8.58 trillion Japanese yen translating to 76% automobile business). In order for the company to ensure that it remains the leader within the automotive industry, it greatly invests and maximizes on its competitive advantage. The company offers competitive prices that are attractable to its potential customers (Morck and Nakamura 2004).
The company has established well-trained staff who guide customers during car purchases. The compare boost of a competitive advantage over its competitors in that it has a well-established inventory for both new and used cars as well as a well complete service and parts department to effectively serve its customers.