An essential process that helps businesses evaluate their present condition, future goals, and the methods needed to achieve those goals is a strategic review of their operations. All business must do a strategic review to succeed since it provides a full and objective examination of the company’s present condition, identifies its strengths and weaknesses, & plots a clear path for future growth and success (Natalis 2022). In this report, strategic analysis of Nissan company will be done by considering various strategic tools such as SWOT Analysis, Pestle Analysis. Lastly, recommendations will be discussed for future development.

 

Strategic analysis of company

The world’s largest carmaker, Nissan Motor Corporation, is based in Yokohama, Japan. The company was founded in 1933 and has grown to become one of the top automakers in the world. Nissan began as the Jidosha Seico Co. Ltd. in 1933. The corporation now goes by the name Nissan Motor Co., Ltd. began producing automobiles in 1934 and continued in 1935. With operations in more than 160 countries, Nissan boasts grown to become one of the biggest manufacturers globally. Nissan’s purpose is to “enrich people’s lives” by giving its customers vehicles that are dependable, safe, and creative. The company’s goal states that it’s going to “create a sustainable future” through promoting environmental sustainability and social responsibility. Nissan’s strong brand awareness and cutting-edge technology have helped it grow into a leading carmaker (Mikami and Bird 2022). The business must address its areas of weakness and embrace its possibilities if it wants to remain competitive in the automotive sector, which is continually developing. Nissan can keep enhancing people’s lives through its automobiles while also building a sustainable future by putting a strong emphasis on sustainability and social responsibility.

Environment analysis

Nissan is a Japanese multinational automaker that has expanded to rank among the top five global automakers.

SWOT Analysis (internal environmental analysis)

Strengths

Many advantages have contributed to Nissan Company’s success as a major global carmaker.

Invention and technology.

Nissan does indeed have a reputation for being an innovator and a leader in technology. The business invests heavily in research and development, resulting in the development of advanced, fuel-efficient engines and electric cars.

Strong sense of brand.

The Nissan name is well-known and highly regarded in the automotive business. Nissan has built a strong brand over the years, & consumers prize its products for their durability and high calibre.

Reach all corners of the globe.

Nissan has activities in over 160 countries, which is a remarkable worldwide reach. Due to its extensive presence in Asia, Europe, and North America, the firm is able to service a wide variety of consumers.

Wide range of products.

Nissan offers a wide range of products, including high-end automobiles, industrial machinery, and passenger cars (Mohd Yusoff, Ismail and Harun 2018). Due to its varied portfolio, the firm is able to service a range of clients and focus on different market areas.

Enduring alliance alliances.

Nissan has close alliance ties with other automakers including Mitsubishi and Renault. These partnerships have led to the sharing of information, assets, and technology, that has decreased costs and increased productivity.

In conclusion, Nissan’s assets include its dedication to technological advancement, strong brand reputation, international reach, wide range of product offerings, and strong alliance connections. These advantages have allowed the firm to keep up its competitiveness in the automotive industry and grow its market share.

Weaknesses

Nissan has a distinguished history as an automaker. Despite its success, the company still has significant issues that must be resolved if it is to maintain its market dominance. The major shortcomings of Nissan are some of the following.

– Little market share: Nissan has a modest market share when compared to other prominent automakers. This limits the company’s ability to compete with more powerful brands and increase its impact globally.

– Dependency on significant markets: A significant amount of Nissan’s sales come from the Japanese and American markets, which are where the company is most dependent. The company is therefore vulnerable to changes in these areas’ economy.

– Restricted product selection: Compared to other prominent automakers, Nissan has a small assortment of vehicles. This limits its ability to cater to different market niches and diversify its revenue streams.

– Quality issues: In the past, Nissan’s automobiles have had certain quality issues that have harmed both the confidence of its consumers and the reputation of its brand. The company must address this critical shortcoming if it is to win back the confidence and loyalty of its clients.

– Subpar financial results: Nissan’s latest financial results were subpar, with dropping sales and earnings. The resulting cost-cutting and restructuring activities may have an effect on the company’s long-term growth potential.

In order to preserve its development and competitiveness in the global car sector, Nissan must address these weaknesses.

Opportunities

The Nissan Corporation may take advantage of a number of opportunities to further its growth and profitability. Many of these options are as follows:.

1. Nissan has the chance to grow its market share by exploiting its experience in the manufacture of electric automobiles as demand for green energy and environmentally friendly vehicles is on the rise. In order to enhance battery technology and reduce production costs, the company can also invest in R&D.
2. Nissan may expand in emerging markets where there is a growing need for affordable, trustworthy cars, such as China, India, and Africa. The company can establish production facilities in these markets in conjunction with local enterprises.
3. Nissan will be able to broaden the scope of its product line beyond electric vehicles by introducing additional models to its inventory, such as SUVs, pickup trucks, and luxury cars. By offering services to multiple market sectors, the company may increase its sales and profitability.
4. Due to the rising demand for this technology, Nissan can spend money on R&D to build its own autonomous driving system. This will provide it a competitive edge over its rivals in addition to enhancing the comfort and safety of its cars.
5. Nissan has the ability to form partnerships with other manufacturers, as well as with suppliers, dealers, and tech firms. By harnessing the skills and resources of its partners, this will enable the company to enhance its processes and product offerings.

To summarize, Nissan has a lot of chances to increase its growth and profitability. By focusing on these prospects, the firm may set itself up for long-term success in the intensely competitive automobile market.

Threats

The operations and profitability of the Nissan Company are threatened by a variety of factors. The following is a list of the key risks:.

1. Nissan’s tough competitors in the automotive sector include Ford, Toyota, Honda, and other automakers. Nissan is under pressure from the competition to invest a lot in R&D in order to create cutting-edge goods that can stand out in the market.
2. Economic conditions: Changes in the world economy have a big influence on Nissan’s sales and revenue. During economic downturns, consumer spending may diminish, which might lower the demand for Nissan’s products (Dimitrakaki 2021).
3. Regulatory modifications: Due to the high level of regulation in the automobile sector, modifications to the laws may increase Nissan’s operating expenses and have a negative impact on its profitability.
4. Supply chain hiccups: Nissan’s complex supply chain depends on several vendors to provide the parts for its automobiles. Production delays and potential reputational harm for Nissan might arise from any disruptions in this supply chain.
5. Technological advancements: New technologies like autonomous driving and electrified vehicles pose a threat to Nissan’s established business strategy. To remain competitive, Nissan must adjust to these developments and invest in new technology (Kowalska-Pyzalska, Kott and Kott 2020). In conclusion, if Nissan wants to sustain its long-term performance, it must negotiate a variety of obstacles.

Although Nissan has a significant presence on the global auto market, diversification and keeping up with quickly advancing technologies present challenges. Nissan can keep expanding and prospering in the future by addressing its areas of weakness and seizing new opportunities.

PESTLE Analysis (external environmental analysis)

          Nissan is a multinational automaker with operations in a number of countries. Understanding the company’s present and potential prospects requires doing a PESTLE study, which considers numerous external variables that may have an influence on the company’s operations.

Political:

• Government legislation and regulations governing car emissions and safety requirements may have an influence on Nissan’s production and sales.
• The firm works in several nations throughout the world, and it can encounter changes in laws, tariffs, as well as taxes that could have an impact on how it conducts business.
• Among the political issues that have an impact on Nissan are the laws and regulations that various countries use to regulate the car sector. Nissan’s activities, for instance, might be impacted by changes to tariffs, trade agreements, or import/export rules. Political turmoil in some countries may also have an influence on Nissan’s business.
• Nissan’s operations might be harmed by political turmoil and conflict in the countries where the company does business.

Economic:

• Changes in currency rates can affect Nissan’s capacity to compete globally and keep a profit.
• Exchange rates, interest rates, as well as consumer purchasing patterns are just a few examples of the economic factors that might affect Nissan’s sales and profitability.
• If customer demand and spending power vary, Nissan’s sales and revenue may also change (Omirgaliyev and Kassymkhanov 2021).

Social:

• Nissan’s hybrid and electrically powered vehicles could become more popular as awareness of sustainability and environmental issues grows.
• Changes in customer tastes and lifestyle choices may have an influence on Nissan’s advertising and merchandise development initiatives (Chodakowska 2018).
• Nissan is impacted by customer choices, cultural living patterns, and demographics. Nissan must consider significant societal trends like the attractiveness of SUVs and the increasing demand for electrified vehicles.

Technological:

• Nissan may have the opportunity to innovate and differentiate itself from competitors with the advancement of electrified and autonomous driving technology.
• Advancements in car production, connectivity, including automation are just a few examples of technological developments that might have an influence on Nissan’s operations.
• Nissan’s company may be influenced by technical advancements because it operates in a highly technological industry. Autonomous driving, electric propulsion, and artificial intelligence are just a few of the technological advancements that might provide Nissan possibilities to innovate and keep a competitive advantage.
• Nissan’s business and reputation might suffer as a result of data breaches and cybersecurity attacks.

Legal:

• Nissan’s management methods and personnel decisions might well be impacted by changes to labour laws and regulations.
• Laws governing intellectual property, labor legislation, and safety can all have an impact on Nissan Corporation. To avoid fines and other legal repercussions, the corporation must adhere to the legal requirements of the nations in which it conducts business (Le Thanh, Minh and Le Thai 2023).
• A few of the legal issues that concern Nissan are those relating to safety, environmental protection, as well as intellectual property. Nissan may face legal and financial ramifications if these requirements are not followed.
• Legal conflicts regarding intellectual property rights including product responsibility could potentially have a detrimental influence on Nissan’s financial performance.

Environmental:

• As people’s awareness of environmental problems and climate change grows, there may be a rise in the demand for eco-friendly automobiles, which will benefit Nissan’s electric and hybrid models.
• Regulations governing emissions and customer demand for ecologically friendly products are only two examples of how environmental issues may affect Nissan’s company.
• Environmental concerns like air pollution and climate change are becoming more significant in the automotive sector. Nissan has been working on initiatives like the development of electric vehicles as well as the utilization of renewable energy sources to reduce its carbon footprint and promote sustainability.
• Nissan’s supply chain and manufacturing processes may be impacted by environmental laws and regulations.

Furthermore, Nissan must be conscious of the numerous outside influences that can have an influence on how it operates as well as adjust its plans as necessary.

Resource and competence analysis

Nissan is a well-known global automaker with operations all over the world. In this analysis, we will examine the resources and expertise Nissan has that have given it a competitive edge in the auto industry.

Resource Analysis

Physical resources: Nissan has a vast range of physical resources, including manufacturing plants, warehouses, distribution centers, as well as a variety of tools and equipment. These resources enable Nissan to build automobiles of high quality at competitive prices.

Human resources: Nissan has a broad workforce with many different skill sets. The company places a great importance on staff development and invests much in these programs. As a result, Nissan has developed a workforce that is trained and flexible to changing market conditions.

Financial resources: Nissan has a sizable cash reserve as well as a low debt-to-equity ratio, which indicates that its financial situation is solid. This has allowed the company to strategically spend in marketing, the creation of new products, and research & development.

Technological resources: Nissan places a high value on innovation and technology. The business has developed a variety of cutting-edge technologies, including as autonomous driving systems, electric and hybrid vehicles, and much more. Thanks to these technical resources, Nissan has been able to stay up with its competitors as well as maintain its competitive edge.

Competency Analysis

Manufacturing competence: Nissan excels at manufacturing, emphasizing continuous improvement and lean production. This has allowed the company to build high-quality cars at a lesser cost than those of its competitors.

Design competence: Nissan’s cars are renowned for their innovative and stylish designs. With its designs, the company has won several awards, including the coveted Red Dot Design Award. Nissan’s design skill has allowed it to differentiate its goods from those of its competitors.

Marketing competence: Nissan maintains excellent marketing abilities with a focus on client interaction and brand development. The company has developed several successful marketing initiatives, including the “Innovation that Excites” campaign. Nissan’s marketing prowess has allowed them to build a solid brand and attract new clients.

Research and development competence: With an emphasis on developing cutting-edge goods and technology, Nissan has significant R&D capabilities. The business invests much in R&D and has multiple research sites spread out over the globe. Because to this R&D capability, Nissan has been able to develop cutting-edge technologies such autonomous driving systems, electric, as well as hybrid automobiles (Thomas, Smith and Diez 2013).

Nissan seems to have a number of important resources and abilities that have given it a competitive edge in the car industry. These resources and competences include manufacturing, design, marketing, financial, human, and technology resources in addition to talents in research and development. Nissan has used these resources and capabilities to develop new products, establish a strong brand, and maintain a competitive advantage in the market.

Recommendation for future development

Ansoff matrix

Businesses can identify and assess their potential growth strategies by using the Ansoff Matrix as a strategic tool. Taking into account four different options enables businesses like Nissan to plan their future development.

1. Market penetration involves boosting sales of current products in current markets. Nissan can do this by launching aggressive marketing campaigns, offering superior after-sales support, and introducing loyalty programs to keep its current clientele.
2. Market Development: This tactic entails bringing current products into new markets. By opening new dealerships, enhancing its online presence, and collaborating with regional distributors, Nissan can explore new markets.
3. Product development entails creating new products for markets that already exist. Nissan can accomplish this by making investments in R&D to develop new technologies and features that cater to the evolving needs of its clients.
4. Diversification: This tactic entails introducing new products into untapped markets. Nissan has the opportunity to enter new markets by making investments in a variety of industries, including renewable energy, autonomous vehicles, and electric vehicles.

Nissan can analyze each one of these tactics using the Ansoff Matrix to decide which one is most appropriate for the company’s long-term development and growth. Nissan must thoroughly analyze its strengths, weaknesses, opportunities, as well as threats before implementing any of these tactics. By doing this, the company is going to be in better position to weigh the advantages and drawbacks of each approach and determine the best course of action. Nissan should continually watch the market and tweak its strategy as needed in order to stay competitive and adapt to changing consumer wants and preferences.

TOWS Matrix

Based on evaluation done in environmental analysis part, TOWS analysis is mentioned below:

	Strengths	Weaknesses
Opportunities	With a strong brand, venture into new markets as well as electric/hybrid automobiles.	To seize opportunities, address flaws in financial performance and supplier dependency (Garrahan and Stewart 2017).
Threats	To stand out in the crowded market, use cutting-edge technology and creativity.	Focus on developing markets and autonomous vehicle technology to reduce risks.

 

The TOWS Matrix is capable of helping Nissan organize as well as rank its strategic initiatives. Nissan can take use of its strong brand and cutting-edge technology to expand into developing countries, create electric and hybrid vehicles, and stand out from the severe competition. In order to address vulnerabilities like supplier reliance and financial performance, Nissan may concentrate on minimizing risks by investing in new markets and autonomous driving technologies (Toma and Marinescu 2013). Nissan may use the TOWS Matrix to organize and plan its strategic initiatives. Even if the market for electric and hybrid cars is expanding, it is essential to address this problem as well. Nissan needs to invest more money in these areas if it wants to take advantage of this opportunity.

Suitability, feasibility, and acceptability

Nissan is a well-known vehicle manufacturer with a long history of operation. Recent challenges for the corporation have included decreased sales and financial losses. Yet, the company has been working to improve the situation and position itself for future growth.

Suitability

Nissan is a well-known company, and people all around the world like driving its vehicles. The corporation offers a wide selection of goods, ranging from affordable sedans to potent sports automobiles. Nissan is well-suited for future development because, owing to its breadth of product offerings, it can meet the needs of a wide spectrum of customers (Barney 2015). Nissan has also made large investments in the rapidly-emerging electric vehicle market. Nissan is a good candidate for future development thanks to this investment in EVs because it puts the business in a position to benefit from the rising demand for electric vehicles.

Feasibility

Nissan’s financial resources and technological know-how enable it to make investments in R&D, which are crucial for future growth. The company has been collaborating with other companies and investing in new technology to improve its products and services. Nissan is committed to innovation and keeping on the cutting edge, as seen by its focus on electric vehicles and autonomous driving technologies (Wang, Nguyen and Wang 2016). Nissan additionally maintains a big worldwide supply and distribution network, that helps the company expand into new areas and gain a greater market share.

Acceptability

Nissan has a solid customer base and has been making a lot of effort to boost its standing and level of client satisfaction. The business has been making improvements to customer service, quality control, and the ownership experience as a whole. Nissan is a viable choice for future development due to its emphasis on client satisfaction and brand reputation (Tomino, Park and Hong 2012). The business has also been working to create environmentally friendly and sustainable products, which are becoming more and more significant to consumers.

In conclusion, Nissan is a viable, appropriate, and suitable option for future development. The business is dedicated to innovation and client satisfaction, and it has strong financial resources, technical know-how, and brand recognition. Nissan is well-positioned to benefit from the rising demand for these technologies thanks to its investments in electric cars and autonomous driving technology. Overall, Nissan is in a good position for future expansion and development.

Recommendation

Nissan is advised to focus on the following strategic goals after thoroughly analyzing its current state and prospective future.

1. Nissan needs to improve the efficacy as well as the effectiveness of its supply chain management. The implementation of cutting-edge technologies such as blockchain as well as the Internet of things, in addition to improved supplier communication and inventory management, can help achieve this.
2. Nissan has to take the initiative in making the switch to electric cars (EVs), which the automotive industry is doing swiftly. The company must invest in EV research and development, along with related technologies, in order to stay competitive (Daidj 2012). It must also seek to launch new and improved EV models.
3. Nissan must prioritize expanding its footprint in emerging markets including South East Asia, China, & India. Nissan has to take advantage of this chance for expansion by launching new models, increasing its marketing spend, and growing its distribution network in these areas.
4. Nissan must embrace digital transformation & make investments in technologies such as artificial intelligence (AI), big data analytics, including cloud computing in order to enhance its operations and customer experience (Kasych 2019). This will help Nissan keep one step ahead of the competition and provide customers with a better value.

By focusing on these strategic efforts, that will additionally assist Nissan to bolster its position in the international automotive sector, growth for Nissan can be sustained over the long term.

Conclusion

Lastly, paper can be concluded by stating that Nissan’s strategic research has shed light on the corporation’s benefits, drawbacks, opportunities, and dangers in a number of important ways. One of Nissan’s main advantages is that it has a strong brand name and reputation in the automobile industry. The company is well-known worldwide and provides a variety of products, including electric and hybrid automobiles. Nissan does, meanwhile, face a number of challenges, including declining sales and profitability as well as a lack of innovation in its product development. The long-term effects of the corporation’s high debt-to-equity ratio might be felt in its financial performance. Nissan must prioritize improving its product development process and investing in cutting-edge technology like autonomous driving and electrified vehicles. The company should also consider expanding its influence abroad and strengthening its partnerships with other automakers. Ultimately, Nissan has the ability to maintain its position as a key player in the automotive industry, but to do so, it will need to manage these challenges and make wise investments both now and in the future.

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