BUS800 Strategic Management

April 17, 2015

Submitted by

Salman Saeed 5002345913

However its quality has not been top notch when compared with its rival companies in the U. 3. Nissan has also gained strength from the synergies created through the partnership with Renault (B4. the partnership has not helped Nissan become profitable within the second largest market in the world. As a result of not addressing the concerns. Nissan is caught up with its defect and safety recalls issues. making the industry highly competitive. Renault failed miserably in the U.1). Similar to Nissan. the partnership did not improve quality and safety recalls concerns it had from the start. There have also been numerous other recalls regarding faulty fuel pump. On a positive note. However.3). In doing so. high quality and an attractive styling (A2. . especially when such a high investment is at stake (A2. In order to remain competitive. However.S. Most of the recent recalls are related to air bags issue.1.S. 1 INTRODUCTION The U. 7. It is crucial that consumers view the product line as high quality or they will not likely purchase it. Positive brand image is comprised of the product reliability.3). This partnership allowed Nissan to remain competitive and capitalize on the new market segments in Europe and South America.S.1.3). GM and Honda are the biggest players of the U. Companies such as Ford. etc. Industry’s macro environment shows strong rivalry amongst the competitors. one of the key success factor in the automotive industry is positive brand image. Besides. Therefore.S automotive market is the second largest after China. Nissan’s partnership with Renault has not really benefited the company in America. ANALYSIS Issue: How to reduce the number of recalls and improve quality to remain competitive as the competition from the rivals intensify? What are the negatives involved with its brand name? One of Nissan’s strengths mentioned in the SWOT analysis is that it has the most innovative plants in the industry in terms of efficiency and adaptability to changes (A. Nissan will further improve its brand image.2). recalls cost a lot of money that further affect the company’s profitability (A 6).3). market. which will result in more sales for the company (A7. Nissan needs to improve its quality and reduce the recalls.3. Furthermore.S market whereas Nissan is the six largest in terms of the market share. and 7. Renault has not focused on R&D in electric and hybrid technology and both brands have been associated with negative publicity in the past. As stated in the external analysis. Before being acquired by Nissan.3). recalls are still an issue for the Nissan Motor Company (B4. Nissan has the most innovative plants in the industry in terms of efficiency. Key success factors (KSF) are the ‘must have’ factors that shape whether a company can gain sustainable competitive advantage in the current environment. Nissan has further harmed its image by relating itself to an unsuccessful brand (B4. Nissan was recently named the most efficient manufacturer in America. however quality has not been its top priority.2. Passenger vehicle demand has been on the rise since the recovery of the 2008 recession. Nissan’s recent sale figures shows an increase in passenger vehicle demand in the U. In fact. 7.4. Toyota.

Aggressive Marketing Campaign Advertising campaigns to create the positive brand image and brand recognition could be a short term solution to overcome the Nissan’s negative image due to a number of recalls. Nissan must stay ahead of the game. Cons of forming an alliance or alliances with industry leaders could result in an unequal benefits. a mutual competitor (A6).S consumers prefer.3). result in more satisfied customers. Nissan can simply improve quality controls during the manufacturing. 2 The management team needs to review the stated issue as it is one the key success factors of the industry. This would allow for a good competition with Honda. Independent test centres and in-house research and development departments should take the responsible for ensuring that the quality standards are met. . Main disadvantage of this alternative is that employees training and developing new methods for quality controls is a time consuming and requires more capital. Additionally. The company should also look into the possibility of creating an alliance with other auto manufacturers like Ford. Since this is another main area that Nissan-Renault lack in. An alternative to the current strategy must be developed to sustain growth and its competitiveness in the market. Improve Quality Controls To overcome the quality issue and reduce recalls overall.2). suppliers should be held accountable for meeting the certain quality standards. Furthermore. Random sampling is a good way to ensure that parts and components that are outsourced have met the quality expectation for Nissan. especially since the competitors are looking for ways to exceed customer’s expectation in order to increase their brand loyalty (A2. This would create additional strengths between the two members of different “keiretsu” to increase pressure on their supplier to provide the highest quality products. Toyota offers a good fit and more areas of alliance should be hunted for in order to overcome its quality issues. 2. ALTERNATIVES 1. liability issues and loss of control. Ford has a better understanding of customer base in terms of what features the U. 7. Nissan is currently in a partnership with Toyota for the alternative fuel research (B3. brand loyalty will increase and therefore a positive brand image in the minds of consumers (B7. Working together can help bother partners to reduce their recalls and retain a positive brand image. Nissan should also look into creating alliances with Mitsubishi. Engineering and R & D budget will need to be adjusted accordingly to ensure the highest quality standards are being followed in each manufacturing stage. Improving the quality standards will not only eliminate the recalls but also improve Nissan’s car reliability and thus. 3. Quality control can be implemented at stage of the production to ensure there are not any faulty products going out of the production house. Moreover.1. Alliance with the Industry Leaders Another way to improve quality and reduce recalls is to pursue deeper alliance with Toyota to benefit from their Total Quality Management program also known as The Toyota Way.3).

having a positive image through the use of aggressive marketing tactics can allow Nissan to outperform its rivals over a short run. Since Nissan is already in a partnership with Toyota for the alternative fuel research. Well informed advertisement either on social media or public relation campaigns are good ways to get the word out. YouTube. Nissan should also form an alliance with Mitsubishi to work together against their main rival – Honda. Honda is known to have a very strong foothold in the U. Different media steams can be used to deliver its message to the target audience. Toyota has teamed up with GM to collaborate on the quality management in the past. Industry is based on the learning and experience curve. therefore alliance with another partner will be the fastest way to get to the bottom of the problem and fix issues from the base so that the brand reputation remains intact for the upcoming years. Detailed information on the company’s quality control methods and other relative information can be presented in an interactive way to the consumers to show their efforts towards customer satisfaction. there should be a well-planned marketing tactic to let the consumers know about the efforts made to improve quality. In addition. 3 Positive brand image can be created with successful advertising of improved and advanced functionality for the cars. Public relations and celebrity endorsements also help to promote the company’s positive image and efforts taken to improve quality. Showing their efforts can also help improve the brand image. Nissan can also form a similar collaboration. the Nissan Motor Company should create alliances with the industry leaders.S market. Alliance would create additional strengths between the two members of different keiretsu to increase pressure on their suppliers for providing the highest quality car parts and compete with Honda. TVs and social media are some of the easily accessible marketing platforms that can have a big impact on the company’s brand image. it could deepen its ties with Toyota for their well-known quality management system and learn “the Toyota Way” of doing things. Furthermore. recalls for the faulty parts would reduce and consumers trust will be built which will genuinely create a positive brand image and brand loyalty. Subsequently. Finally. Positive image is one of the KSF and therefore. Magazines. In return Nissan can provide Toyota with its efficient plants technology. reduce recalling and eliminate the negativity associated with its brand. Nissan is also financially stable to implement the suggested changes required to improve quality. having a Company website provides a way to connect with consumers.S because of its brand loyalty with consumers and quality products. RECOMMENDATIONS In order to improve quality and remain competitive in the U. Long-term solution needs to be developed so that defects and safety recalls could be minimized. It will allow Nissan to reach new heights with regards to profitability and shareholder’s value. .

Demand for luxury vehicles increased in China.2 Political . 1.Environmental regulations and pollution control are some factors in making business decisions. during 2008 recession.High spending on R & D and Engineering. new-car sales are 58 percent higher than they were in 2009. 1. . EXTERNAL ANALYSIS 1.Strong U. 1.1 Market Size & Growth .S.GM.S.6 million vehicles sold in 2014 in the U.6 million vehicles in 2013. Energy-efficient vehicles demand is on the rise and consumers will be willing to invest up front for a new car for potential savings on fuel costs.Financing and leasing options for lower and middle class families.04 million cars. .S.Disposable incomes determine affordability for consumer.S.3 Buyer needs & requirements: .Industry is in the growth stage. largely due to strong pickup truck demand.New auto sales came in at 1. Conclusion: Passenger vehicles demand is expected to increase as there are more financing and leasing options are available for consumers. Government restrictions and emission regulations could impact auto manufactures since the will have to obey those laws. .S dollar compared to Japanese yen.efficient vehicles such as hybrids and electric models. .4 Social .S requires consideration. 1. 2. DOMINANT ECONOMIC FEATURES ANALYSIS 2. .Tax policies fiscal policies and tariffs in U.6 Environmental . PESTEL ANALYSIS 1.S .Less than 6 million new passenger cars were sold in the United States. .The vehicle industry has been showing continuous technological advancements mainly in different powertrain segments.Disposable incomes determine consumer’s purchasing decisions. .Auto sales in the U. . world largest auto market. .Politically stable environment in Japan and U. 2.2 Number of Buyers . 2.3 Economics .Automotive industry is a prime contributor to GDP in U.More fuel.S. . . . grew 8% to a six-year high of 15. truck demand is on the rise in U.16. therefore. industry’s potential for attractive profits is moderate based on the macro environment.Imposition of strict norms in regards with passenger safety and emission regulations.Large number of buyers.Higher oil prices impact the user’s choices. Ford Motors and Toyota saw decline in their January 2014 sales. .7 Legal .5 Technological . beating estimates.Annual U. Likewise. 4 A. 1.

Industry is characterized by strong learning and experience curve. Ford Motor Co. Honda Motors Co. service. 2.8 Product innovation .. Conclusion: China is the largest automobile market after U. 3. Demand is expected to increase especially in the developing nations.. and Fiat Chrysler Automobiles. manufacturing and assembly.5 Scope of Competitive rivalry .9 Product capacity .2 Competitive Pressure from the Buyers: MODERATE . particularly with regard to more fuel- efficient cars like hybrids.4 Number of rivals . . 2.Parts/components are outsourced to cheap labour countries 2. .The quality. demand for SUVs and truck.13 Learning & Experience curve effects . 2.Competition in the U. .S. distributions and retailing.Buyer needs are constantly evolving. PORTER’S FIVE FORCE ANALYSIS 3. Cost reduction and better customer service are possible way to increase profitability.. The more fuel-efficient a model are the more likely a consumer will be willing to invest up front for a new car for potential savings on fuel.Surplus of capacity is pushing prices and profit margins low.Product of rivals are becoming less differentiated. 3.Excess capacity keeps consumers in charge of price and quality.S auto industry is quite fierce.10 Pace of technological change . .Critical for driving the cost down.Operate in different level of the industry including parts.11 Vertical integration . brand recognition and brand loyalty are the decisive factors. . .. Toyota Motors Co. 5 .Many competitors with similar makes and models. presence in foreign country market is important for a company’s long term competitiveness.Continuous technological advancements in the powertrain/fuel consumptions 2. components production.Smaller player: Mahindra & Mahindra and Tesla. 2. causing price competitions.Dealership are willing to price match.The industry is fragmented into many large companies with the top five in the industry controls most of the market.The geographical area is global since large firms’ emphasis on expanding worldwide to gain maximum market shares. . Hence.More price conscious consumers. . 2.General Motor Co.12 Economic of scale . . 2.6 Degree of product differentiation .Product innovation can increases demand. Companies must invest in R&D and develop strong product innovation capabilities for their survival in the industry.Many partially or fully integrated. 2.1 Competitive Pressure for the Rival Sellers: STRONG . Buyers are price conscious and wants more value for their money.

S and Canada. substitute products are considered to be a low competitive force as there are not many alternatives available in most of the cities in U.Japanese auto makers are expected to outperform their American peers in terms of sales growth on strong performance in their top-selling sedans and crossovers.Fuel cost increase the possibility that consumers will use a substitute. .S and Canada. .GM seeking a part of China’s increasing luxury market demand with its 1.Alternative modes of transportation such as carpooling. .1 Changes in the long-term industry growth rate: .$1 billion for a new state-of-the-art manufacturing plant at Gujarat. .3 billion investment in the Chrysler factory. .4 Competitive Pressure from the New Entrants: WEAK .Toyota's full hybrid system uniquely combines electric motor with gasoline engine to create one of the world's most efficient vehicles.The Chinese-owned car maker Volvo is planning invest $500 million to build the plant in U. cost control measures for low prices and special financing needs.Auto part suppliers cannot afford to lose their biggest clients.Ford F series truck is one the bestselling truck in the North America. strong competition could take way some of the sale revenues. However.5 Competitive Pressure from the Substitute Product: LOW . .Toyota Motor Corp. . 4.Rising dollar price and low interest rate and longer new-car loan deals in America. the competitive pressure from buyers is considered moderate power in this case. .2 Increasing Globalization: .Brand loyalty amongst consumers. Threats from new entrant and pressure of the suppliers is weak in the industry. bicycles.Low power in the auto industry.High start-up cost. it is becoming harder to differentiate between cars of different brands that share similar features. 4.Cars are the only way to travel in most of the cities in U. . DRIVING FORCES ANALYSIS 4. subways are available in big urbanized cities. In conclusion. Manufacturers must continuously strive to outperform competitors with unique styling. .3 Technological Change: .S. Overall. 6 . . India. . the collective strength of the five competitive forces is in favourable to good profitability. Consumer are picky with high expectation as it is second largest household spending 3.Technological innovation is constantly changing the nature of the auto industry. by as much as 17 percent. is expected to see the largest increase in sales compared with last February. Lastly.Tesla’s electric powered vehicle. .Former R & D knowledge creates a heavy learning curve affect 3.3 Competitive Pressure from the Suppliers: WEAK . Rising consumer debt. Overall. 3. competition from the rival is strong whereas. public transit. 4. .

5 million in 2014. . industry volume to range between 16-17 million units in 2014. not all the positions in the strategic group map are equally attractive because of the prevailing competitive pressure from the industry’s five forces and driving forces may favor some strategic groups and hurts others.62 million models with faulty ignition switches that killed number of people. Nissan stands out as it has a little higher price ranges than the top three. its impact is going to increase competition and thus. Ford expected U. . Ford is expanding aggressively in India. 6. China and other developing nations.Fuel efficient and Hybrid technology. safety and quality should be the top priority for the companies in the auto industry to avoid the penalties and negative publicity that can harm the brand image.2 billion penalty to settle a criminal probe. the driving forces analysis shows that the automobile industry in the North American region is on a promising growth track. Toyota agreed to a $1. Similarly. weakness and their current performance. GM. STRATEGIC GROUP MAP ANALYSIS .S. the combined effect could lead to intense competition amongst rivals. Ford Motors and Toyota are very close competitors in the U. . 5.S. Overall. Conclusion: Low interest rates and rising dollar will definitely improve profitability for the foreign companies in U. . GM plant in China would allow GM to avoid paying China’s 25 percent import tariff. In conclusion. Similarly. GM expected industry sales in the range of 16-16. Therefore. Technology is also an important factor in the automobile industry as companies have been investing heavily in the R & D programs. FRAMEWORK FOR COMPETITOR ANALYSIS Framework of competitive analysis provides are clear picture of the Nissan’s competitor strategic moves. strength. 7 . As stated in the table below.S region. .Google’s self-diving car. Toyota and Ford growth rates were slower in 2014. . while Toyota assumes it to be about 16 million. In Conclusion. However. car sales are also expected to grow especially in the SUVs and trucks market. General Motors is facing possible legal problems regarding 1.

OBJECTIVES? Acura brand. which innovative culture. performance and brand image strategy. The popularity of Constant recall and Diversified product Hybrid market STRENGTHS Ford's expanded brand dilution. 8 FRAMEWORK FORD GM HONDA TOYOTA INDICATORS Detroit-based GM owns 18 Focusing on Topped 10 STRATEGY/ General Motors brands. KSF ANALYSIS . Strong is ruled by & product lineup in brand. Buick. came in at 91. Honda million units in POSITION reported a Chevrolet.631 units. invented the global nearly 12 Cadillac. in worldwide plants in order to reduce production. aims at Leader in producing hybrid multiple models technology. worldwide. flexible factory production last percent decline Opel and many through an year in sales in others. Toyota which China boosted includes Prius WEAKNESSES the automaker's and Camry) Decreasing sales is sales by 49% in their current 2013. in the nation by introducing 15 models by 2015. Ford in particular Recalls issue lead has been having to $1. innovation known January. 2015 as synchronized engineering COMPETITIVE "One Lead in Product and Strong financial Very Strong ADVANTAGE Manufacturing" Technology. portfolio. GMC. Higher than MEETING including the luxury expected. weakness. comprised of a 4 percent decline in Honda brand vehicles and a 14 percent increase in Acura. including Localizing.2 billion problems with its penalty to settle a popular sports criminal probe utility vehicle. General Motors and its joint venture INVESTMENT partners in China S plan to invest $11 Ford plans to billion in the triple its line-up country by 2016. Yes Yes Total sales. ASSUMPTION No information No information No information No information 7.

the industry is not highly attractive mainly because of heavy rivalry among competitors. Common Sized Income Statement . with a good strategic approach and with the help key success factors companies can still outperform its competitors to achieve higher returns and create wealth for its shareholders. came in second with 2.5 million units. . As mentioned earlier in the five-force model of competition. companies like Nissan will be greatly affected by changes in exchange rates.1 Positive Brand Image: . Conclusion: Key success factors are must have factors that shape whether a company can gain sustainable competitive advantage in the current environment It is crucial that consumers view the product line as high quality or they will not likely to purchase it. Ford Motor Co. General Motors was the leading automaker in the U. 7. 7. Currently. If a company can cut cost. Cost control is crucial because automakers must often squeeze profit margins to stay competitive.2 million units.Number of safety recalls. automotive industry is in the growth stage and there are many markets opportunities for additional revenue streams such as Latin America and Asian markets. a Japanese automaker that relies upon sales across the globe. particularly in the US. industry outlook is not conducive to high probability. it can beat competitors and still maintain reasonable or high profit margins which are crucial for continuous reinvestment in the industry. FINANCIAL ANALYSIS . However. 9 KSFs that companies in the passenger auto industry must have are as followings: 7. in 2013 with annual sales of 2. 7. . Furthermore. Ultimately. The energy and environmental policies of different countries will play a major role in shaping the future of the auto industry. grew 8% to a six-year high in 2013 that shows that industry is sales are still increasing overall.3 Brand Loyalty & Advertising: . Auto sales in the U.8 million units.Important purchasing factor.S. 8.Advertising must reach the targeted market and then resonate a strong brand image.Attractive styling. To conclude.S is the second largest automotive market after China. safety-related recalls have been a major issue in the auto business over the past couple of years. .Effective cost control in manufacturing. . while Toyota slipped into the third position with registered sales of 2.Reliable product with less breakdowns.Firms willing to spend a lot of money to advertise brand image. . INDUSTRY OUTLOOK U.S.4 Attractive Style . especially when such a high investment is at stake.High quality of product is crucial. INTERNAL ANALYSIS 1. B.Brand loyalty is currently is one of the bigger barrier for new entrants in the family clothing industry.2 Lean Production Method: .

1 Profitability . KEY FINANCIAL RATIOS 2. 10 Earning per Share 400 300 200 100 0 2010 2011 2012 2013 2014 Basic Diluted 2.

5%. customers. . .” . . .Solvency and liquidity indicators are following the industry trend. Infinite. Datsun and NISMO brands. Operating Margin. 11 .“Our mission is to enrich people's lives. Altima and Rouge crossover top seller. .2 Competitive approach .Nissan targets to achieve sustainable.3 Solvency . 3. . Nissan completed the Nissan Revival Plan (NRP) and began Nissan 180. and cutting the company's debt by half. .Contribute to social development as a valued and trusted fellow of society.Current Ratio is higher than 1.equity ratio shows the balance between debt and the amount that stockholder have invested in the firm. Sentra. average days it takes Nissan to sell its inventory is 48. increasing operating margins to 4. . Liquidity ratio of higher than one means Nissan able to pay current liabilities using its assets that can be converted to cash in the immediate future.3Key performance indicators Solvency & Liquidity: . Nissan was the sixth largest automaker in the world in terms of market share. Return on assets seems to stay to be maintain. Nissan Motor sells its cars under the Nissan. Industry average is about 60 days in the auto industry.2 Liquidity .Vision: Enriching people’s Lives. .4 Activity .Lower is better 2. COGS. partners. thus inventory management is efficient in the case. 2.Debt-to. Carlos Ghson serves as CEO of both companies. 3.75 in 2014.1 Identify Company’s Vision.Corporate Mission Statement: “Nissan provides unique and innovative automotive products and services that deliver superior measurable values to all stakeholders in alliance with Renault. 3.Reducing purchasing costs by 20%. Similarly. dealers.D/E was 0. and Objectives . . shareholders and the world at large”. building trust with our employees. Partnership with Toyota for hybrid vehicles. COMPANY’S PRESENT STRATEGY 3. Mission. . . The Renault–Nissan Alliance makes them the world’s fourth largest automaker.Gross Margin.Average 48 days Conclusion: Nissan is in a good financial health based on the above mentioned probability measures. . 2.Nissan holds a 15% non-voting stake in Renault. profitable growth.

Most recent recalls includes. 4. A strategic alliance with Renault has proven to benefit the company in some areas. Nissan and Infinity are the most popular ones in North America.Net come growth 11% . 12 Profitability & Growth .Japanese automaker Nissan is one of the most profitable automakers in the world. there is a huge untapped market opportunity for the company.Latecomer in the Hybrid technology.3 Opportunities . .1 Strength .S. 1 million vehicles due to airbag flaw. Its’ ccompact size Sentra sales very successful as the brand looks to increase its market share in the region and overtake Honda as the fourth biggest seller in the U.Appreciating yen exchange rate against other dollar means low profits .Growth through acquisitions/ partnerships. .S. . Nissan .S 4. . . Alliance Rostec Auto BV and European Automobile Manufacturers Association.Smaller in size compared to Toyota or Ford. . .2 Weakness .Various substitutes such carpooling apps. Uber.Renault failed in U.Economic vehicles that cater to consumers in both mature and emerging markets.Nissan had a huge growth increase in the past three years. 4. . SWOT ANALYSIS 4. It has not yet reach its full potential as of its competitor.Demand of environment friendly vehicles . Conclusion: Nissan is somewhat able to seize the market opportunities and overcome the external threats however. . Nissan has marketed itself for the lower and middle class market with prices starting from $15000.The top 10 global automakers account for nearly 94% of total vehicles sold in the U. Nissan also plans to take away consumers who would otherwise shop for luxury vehicles. 4. . Nissan plans of further expanding its operating worldwide and as well in the developing nations where the demand is higher than the developed countries. .R & D has yet to come up with its homemade electric and hybrid car. reliable transport system.When compared with the leading industry indicator company is performing well above the average.Rising raw material prices such as Steel.Intense competition from global players. Nissan’s strategy of focusing on its compact car.Innovative culture.Revenue up by 8% Nissan Motor Company is a global brand that competes worldwide.Part of Japan Automobile Manufacturers Association. Nissan’s Rogue crossover and Versa subcompact are new revenue generator. .Nissan Green Program 2010.Growing brand reputation –Nissan and Infinity Brand. .Higher fuel prices .5 Threats .

Suppliers are partners in the R&D of strategic systems.1 8 2. 13 is financially stable and have the assets to compete with its rivals. .925 workers worldwide. One of the major weakness is its name being associated with negative publicity due to high number of recalls. The company works together with suppliers and dealers as equal partners.2 5 1 image . To remain competitive.3 Human Resources Management .4 6 2. IV. .8 7 2.8 6 1.Alliance with Renault. Nissan has realized a 20% reduction in purchasing costs.2 6 1. U. 5.5 6 1.142. Distribution .2 6 1.700 suppliers. Operations Nissan’s value chain today extends around the globe due to its expanded business interests.Online presence with comparison tools.Nissan manages and maintains a database of basic information about its suppliers worldwide. WEIGHTED COMPETITIVE STRENGTH ASSESSMENT KSF NISSAN FORD GM HONDA TOYOTA Brand 0.Presence at auto shows held worldwide. . the company cost’s Structure and value proposition is competitive. Mexico and India III.7. V. Service .4 6 2. .4 5 2. automakers need to constantly improve technologically designs and economic vehicles that cater to consumers in both mature and emerging markets.Involved in the manufacturing and supply of high-technology parts and components.S.2 Support Activities .4 Production Positive 0. In conclusion.Nissan promotes consistency in the CSR activities undertaken throughout the supply chain. value chain analysis and benchmarking determine that company is performing functions are in line with its competitors.Plants in Spain.2 5 1 6 1.4 Lean 0.After service warranty .1 Primary Activities I. II.Continuous improvement 5.3 5 1. 6. Supply Chain: Nissan aims to achieve sustainable growth and built on a foundation of mutual trust between its suppliers. such as the locations of suppliers' plants and the total value of purchases. . Sales & Marketing: .0 6 2. developing and maintaining cooperative and competitive relations that enable it to implement best practices. . .Trade-in policies for consumers 5. Nissan also seems to be behind in terms of R & D sector.4 5 2. VALUE CHAIN ANALYSIS 5.

However.6 4 0. It also shows how important safety is and recalls could cost a lot of money.S.3. Therefore product is necessary is tool. “ONE” STRATEGIC ISSUE Issue: How to reduce recalls and remain competitive as the competition from the rivals increase? Nissan has the most innovative plants in the industry in terms of efficiency. Honda has diversified products and strong brand imagine in U. Like Nissan. Nissan has the most innovative plants in the industry in terms of efficiency. 2.6 5. 8. Positive brand image and brand loyalty. Competitors Analysis: Sets benchmark and an overall pictures of what happening in the industry.1 6 0. What are the negatives involved with its brand name? In the past Nissan’s got a bad reputation due of major recalls which could be one of the reason that Nissan has not reach its full potential in U. Nissan’s partnership with Renault puts Nissan behind major competitors. mostly in developing nations. Toyota has the highest ranking with a score of 6.3 Higher Passenger vehicle demand.5 Companies are spending in R & D and engineering.3 On an overall basis. 7. RELEVANT FACTS A. Macro-Environment 1. 14 Attractive 0. Ford and GM are expanding worldwide.5 5 0.7 6.8 6.4 4 0. 6.4 5 0.8 5.2 2. 5. With an increased competition from its rivals Nissan could lose it competitiveness in the market.4: Suggests increase in demand and therefore Nissan should capitalize on the growing demand. strong rivalry amongst competitors could impact Nissan profitability.1 Five Force Model: the collective strength of the five competitive forces is favourable to good profitability. Renault has not focused on R&D in electric and hybrid technology and both brands have been associated with negative publicity in the past. the company is competitively in a good position when compared to its key rivals.S 7. 1. Whereas.5 Style Sum of 1 weights TOTAL 5. KSF: Key factor required to be successful in the industry. Honda and GM seems to be the closest competitor based the weight competitive strength assessments.1. 2. . however quality has not been its top priority.

from http://www. Retrieved March 10. 4.d. 15 think/reports-white-papers/article-display/2013-us-automotive-industry-survey- confidence-index Gorzelany.Industry highest-recall-rates/ Our 2014-industry-outlook-cm324544 Corwin. from nissan- ups-fy-profit-view-on-strong-us-sales-2015-02-09 Nissan Motor Co Ltd ADR NSANY.3 4. Retrieved March 9.4 SWOT Analysis: Opportunities are there and as well as some threat. Renault exist from U. 2015.) March 3). (n. from http://www. (n.). Retrieved March 9. global.Feb 2014 .2. 2015.).nissanproblems. S. 2015.html .). B. from http://www. 2015. J.. Retrieved April 9. Internal Environment 1.4 Value Chain Analysis: Primary and support activities are available to improve the quality and reduce the number of safety recalls. Nissan’s Global workforce could tackles threats and increase it bottom lines numbers. Nissan ups FY profit view on strong U. from http://www.d.S. (n. (2013.S.morningstar.html SWOT analysis of Nissan ups FY profit view on strong U. 4.1. Retrieved March 9. 2015. and 4. from http://financials. Automakers With The Lowest (And Highest) Recall Rates.strategyand. (n. Airbag recalls Bibliography Auto Industry Stock Outlook . (n. Retrieved March 10. (2014.). Retrieved April 9.forbes. 2015.html?t=NSANY&region=usa&culture=en-US Nissan Recall Information. from http://www. (2014.2 4. Honda is known for their quality products. Retrieved March 9. October 23). (n. 2015.strategicmanagementinsight. February 6). sales. from http://www. from http://www. 4. Retrieved March 9.nasdaq.d. 5. 4.d.).com/swot-analyses/nissan-swot-analysis. Nissan Swot. Competitive Strength analysis: Very close to competitors like Honda. Financial Analysis: Company is in good financial position to expand further and make necessary change to improve quality.d.S. & Collie.1.

16 Young. February 3). from http://www. A.ibtimes. Here Are The January 2014 'Big 8' US Auto Sales. Retrieved March 11. numbers-gm-ford-chrysler-toyota-honda-nissan-kiahyundai . (2014.