5 competitors

1. Competitor

Toyota Motor Corp :

Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered in
Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on August 28, 1937.
Toyota is one of the largest automobile manufacturers in the world, producing about 10 million
vehicles per year.
1. History :
• Toyota Motor Co. was established as an independent and separate company in 1937. Although the founding
family's name was written in the Kanji " 豊田 " (rendered as "Toyoda"), the company name was changed to
a similar word in katakana - トヨタ (rendered as "Toyota") because the latter has 8 strokes which is
regarded as a lucky number in East Asian culture.[3] Since Kanji are essentially Chinese characters, in 
Chinese speaking markets, the company and its vehicles are still referred to by the original Kanji
name (simplified Chinese:  丰田 ; traditional Chinese:  豐田 ; pinyin: fēng tián), but with Chinese
pronunciation.
• With the Japanese economy modernizing and expanding during the 1930s, both Ford and GM had built
factories in Japan where vehicles were imported from America in knock down kits and assembled
locally. The Ford Yokohama facility started in March 1925 and GM built a factory at Osaka starting in
April 1927. By 1929, both Ford and GM controlled most of the Japanese automobile market, producing
28,000 vehicles in 1929. During development of the company's first car, the Toyota AA, the company
purchased locally manufactured GM and Ford products, reverse engineered them, and hired engineers
who had previously worked at the Japanese Ford and GM factories in developing Toyota products.
During the Pacific War (World War II) the company was dedicated to truck[citation needed] production for the 
Imperial Japanese Army. Because of severe shortages in Japan, military trucks were kept as simple as
possible. For example, the trucks had only one headlight in the center of the hood. The war ended
shortly before a scheduled Allied bombing run on the Toyota factories in Aichi.
2. Marketing mix :
1.Products :
With the market diversified demand for different preferences, Toyota
has a diverse set of products to serve all types of customers. These are
some of the products that the company provides:

1.Toyota automobiles
2.Lexus automobiles
3.Welcab series
4.Marine products
5.Spare parts and accessories
6.Engines

There is a  variety of products for different people for example- Lexus

automobiles are luxury products, whereas the Welcab series are
automobiles specially modified for the elderly and people with
disabilities. It also manufactures yachts, engines, spare parts,
accessories for automobiles and marine products.
Now let us see the Place strategy of Toyota.
2.Place:
Product mix determines the place where the products are made available for the customers to access them. Making
products available for customers is an important part of a business. Toyota has two main distribution strategies:
1. Dealerships
2. Retailers
Most of its transactions happen with its dealerships. However, there are retailers like auto supple stored also who
sell its products like spare parts and accessories. On these facts, we can see that the company depends more on
dealerships to sell its products.
Let us now see the Promotional strategy of Toyota.

3. Promotion:
Toyota has covered all the promotional tactics in their promotional strategy. They market their products byways of
billboards, newspapers, T.V, social media platforms(Youtube, Twitter, Instagram, etc), and websites.
These are some of the promotion activities used by Toyota :
3. Personal selling
4. Advertising
5. Public relations
6. Sales promotion
7. Direct selling
They use personal relationships to promote their products like Green Program for environmental initiatives, an
initiative to reduce greenhouse gas emissions, etc.
Toyota uses catchy slogans for the brand and endorses celebrities as brand ambassadors creating a brand recall for
customers. The current brand ambassador of the company is Ayushmann Khurrana.
It uses personal selling by sales personnel, they personally promote their products to potential buyers.
Lastly, we will see the Pricing Strategy of Toyota.

4. Price:
Toyota has been providing affordable price vehicles to its customers. They allow credits to their customers on low-
interest rates to make more profit.
Its price strategy depends on the competition, segment, geography, and demand. They have a flexible pricing
strategy depending on the change in market conditions, and competitors.
They use two pricing strategies which are:
1. Market-oriented pricing
2. Value-based pricing
However, the firm also uses the value-based pricing strategy, which sets prices based on the actual and perceived
value of the product. The company uses value-based pricing for high-end or more expensive products, such as the
Prius and Lexus cars.
3. SWOT Analysis:A

1. Strengths:
•  High Production Capability
With higher production capacity comes stability and flexibility in sales leading to higher profits. Toyota
is giving serious competition to the competitors with its high production capacity of almost 10 million
cars per year.

• Strong Financial Position

Toyota has extra cash saved away compared to its competitors, offering it flexibility and long-term
stability. In 2022, Toyota’s Issuer Default Ratings (IDR) rating by Fitch Ratings International was A+.

•  Strong Brand
Having strong brand recognition and awareness enhances the value of the brand and  contributes to the
bottom line with higher sales.
Toyota is regarded as one of the most recognized brands globally and, according to reports, has
continued to be the world’s most valuable car brand, with a brand value of $75.5 billion.
• Technological Leadership
Apart from its title as one of the biggest automakers in the world, Toyota is an innovator, disruptor, and
leader in technology.
From hybrid Prius to RAV4 and Corolla, Toyota has manufactured and sold over 20 million hybrids since
1997, with some competitors relying on its cutting-edge hybrid technology.

•  Global Dominance
Companies that dominate the market have leverage over competitors. From Asia to Europe, Africa, and
America, Toyota cars are sold in over 170 countries in different regions and 10.5% of the global market.
2. Weaknesses :
•  Overdependence on Suppliers
To succeed, global auto manufacturers must rely on suppliers of cheaper raw materials like aluminum worldwide.
Toyota’s overdependence on suppliers exposes the company to a wide range of risks, including a shutdown of production in case
suppliers declare a strike or fail to deliver vital materials in time.

• Poor Marketing of Eco-friendly Cars

Although Toyota manufactures eco-friendly vehicles using advanced green vehicle technology, the company has failed to advertise
and grab meaningful market share for these highly demanded technologies.

• Ineffective Marketing
Apart from Toyota and Lexus cars, the company also owns Hino and Daihatsu car brands that are unrecognized by consumers due to
Toyota’s ineffective marketing strategies.

• Manufacturing Defects
A high vehicle recall rate can immensely destroy an automaker’s reputation, forcing customers to mass-migrate to its
competitors.
Toyota has a high recall rate and recalled about 3.9 million vehicles in 2020 due to fuel pump defects that can lead to
stalling.
3. Opportunities :
• Expand into Autonomous Vehicles
The demand for safe but cheaper self-driving vehicles is increasing astoundingly. Toyota can expand into this
growing market and exploit readily available opportunities.

• Invest in Related Fields

Toyota has the expertise and resources to engage in other fields within the auto industry like motorcycle
production or related to the industry, such as ridesharing apps and multi-modal mobility services.

•  Focus on Emerging Economies

The financial situation in developing countries has improved immensely over the past few decades.
Toyota can increase investment in emerging economies like China and take advantage of the ever-increasing
demand for cars by the growing middle class.

• Increase Focus on Eco-friendly Vehicles

The number of eco-conscious consumers has increased over the past few years.
Toyota can exploit this opportunity by increasing its investment in and focusing on manufacturing eco-
friendly vehicles, such as hybrid and electric cars. Toyota has set an internal goal to sell about 5.5 million
electric vehicles by 2030.

  
4. Threats :
•  Technology Race
With the race to deliver electric and autonomous vehicles, auto manufacturers, including Toyota, are
pushed to invest billions in partnerships and upcoming technologies to keep up with competitors.
Over-investing can undermine stability and even lead to bankruptcy. 

•  Negative Publicity
Consumers are constantly exposed to images of terror groups, rebels, and armies of rogue regimes
riding Toyota’s off-road trucks.
Although it is a testament to effectiveness in all terrains, the association with terror, bloodshed, and war
zones can affect sales. Also, car names like Toyota ISIS and Corona do not help.

•  Cut-throat Competition
Toyota faces increased global competition from ridesharing apps and traditional competitors like
Nissan, Ford, Volkswagen, BMW, Mitsubishi, Hyundai, and many new entrants.With increased competition
comes slower growth in profitability and market share.

• Global Economic Turmoil

From the global recession due to the pandemic to Trump’s tariffs and isolationism, partaking in the global
arena profitably will increasingly become a challenge for Toyota if these threats persist.
2. Competitor:

Ford Motor Co:

Ford Motor Company is an American multinational automobile manufacturer headquartered in

Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16,
1903. The company sells automobiles and commercial vehicles under the Ford brand, and luxury
cars under its Lincoln luxury brand.
1.History :

Henry Ford built his first automobile, which he called a quadricycle, at his home in Detroit in
1896. The location has been redeveloped, where the Michigan Building now stands, and the
tracks for the Detroit People Mover and the Times Square People Mover station are nearby. At the
entrance to the Michigan Building, there is a commemorative plaque identifying the original
location of the Ford home. The coal shed has been recreated using the original bricks at 
Greenfield Village in nearby Dearborn.[1] His initial foray into automobile manufacturing was the 
Detroit Automobile Company, founded in 1899. The company foundered, and in 1901 was
reorganized as the Henry Ford Company. In March 1902, after falling out with his financial
backers, Ford left the company with the rights to his name and 900 dollars.
2. Marketing mix :

1.Product :
Ford has a huge crowd of customers with various requirements. Thus they have a
well-defined product strategy and a variety of product lines designed to fulfil the
demands and cater to all the sections of society. 
Their main products are:-

•SUV’s
•Cars
•Crossovers 
•Trucks
•Vans
•Performance Vehicles
•Hybrids & EVs
•Vehicle Accessories 
 
Ford also included another wide range of vehicles like Jaguar, Landrover, Volvo,
Mazda, Aston Martin and Mercury and currently continues to sell under the
brand Lincoln. All the Ford products are manufactured
2.Place :
Ford has a wide set up of manufacturing plants among different parts of the world which make distribution easier.
Their main distribution channels include dealership, auto parts and motor credit companies. 
1. Dealerships
2. Retailers
3. Personal selling
They set up a manufacturing plant in Chennai on a 350-acre land. The initial investment went up to 1700 crores and
they manufacture around 200,000 vehicles per annum. They also have another plant in Gujarat which can produce
around 240,000 cars in a year. The main motive of setting up these plants in India was to meet their domestic and
export needs so that original selling prices don’t shoot up. This also led to making it very convenient for the
customers and thus led to the addition of a lot of loyal customers to the ford company.

3. Promotion :
Ford Motor Company promotes it products through all of the conventional tactics. The activities used to promote goods and services
are considered in this element of the marketing mix. Ford’s promotion activities are as follows, arranged according to significance:
4. Advertising
5. Personal selling
6. Direct selling
7. Sales promotions
8. Public relations
Ford uses advertising as the main tactic to promote its products. The company’s television advertisements and online advertisements
are especially prominent. In addition, agents/sales personnel use personal selling to persuade buyers at Ford dealerships and other
venues. In some cases, the company applies direct selling, usually to corporate clients who lease vehicles from the firm. This
marketing mix also involves sales promotion, usually through special offers, discounts, and trade-ins. Moreover, corporate social
responsibility programs and sponsorship of sports events and facilities enable the firm to promote its business and products to a wider
population of potential customers. Thus, this element of the marketing mix shows that Ford effectively applies all of the marketing
communications tactics to promote its goods and services.

4. Prices :
Ford’s prices vary, depending on the market. This element of the marketing mix involves the strategies used to determine appropriate
prices for products, based on market and business conditions. Ford applies two main pricing strategies:
1. Market-oriented pricing strategy
2. Premium pricing strategy
In the market-oriented pricing strategy, Ford’s goal is to set prices that are appropriate to market conditions, with consideration for
competition, demand, consumer perception, and other variables. Ford applies this pricing strategy for most of its products, such as
sedans and trucks. On the other hand, the company applies the premium pricing strategy to set higher prices for some of its products.
This pricing strategy is used for most of the Lincoln automobiles, which are Ford’s luxury line of vehicles. This element of the
marketing mix emphasizes the importance of different pricing strategies to support Ford’s efforts to secure different segments of the
market
3. SWOT Analysis:
1. Strengths:
• Global Recognition :
Ford is a well-known brand in the automobile industry and is also recognized in the global markets because of
its success in marketing and advertising. It operates two brands under Ford Motor Company i.e. Ford and
Lincoln. Its brand value is $10.44 billion according to the 2021 report of Statista.

• Diverse Offerings :
Ford caters to all kinds of demographic groups with their diversified brands and car models. They take care of
the needs and wants of their consumers by providing them with more variety of cars and commercial vehicles.

• Huge Network of Dealers :

The company is also diverse in its operations and distribution, as they have a huge network of about 10,717
dealers across the world. Ford develops its cars on standardized procedures. They also invest heavily in
various fuel sources.

• Automotive Segment :
Ford is currently the second-largest automaker in the U.S. (behind GM) and fifth largest (behind Toyota,
Volkswagen, Hyundai, GM) in the world. Ford Motors sold a total of 4,187,000 vehicles in 2021 worldwide.
• Research and Development :
Ford’s research and development is one of its key strengths because the company is committed to make
and develop new products. They are continuously trying to improve the performance of their vehicles.
The factors that are evaluated include fuel, efficiency, safety, and customer satisfaction.
2. Weaknesses :
• Poor Reputation :
Ford has a poor reputation compared to its European and Japanese rivals. Lincoln, in particular, is considered
an inferior brand as compared to English and German luxury car brands.

• Weak Foothold in Emerging Markets :

As Ford’s operations are diversified in many geographical areas, they lack focus in performance and
productivity. They do not have a stronghold in emerging markets like India.

• Product Recalls :
Ford faced a huge loss and their brand image suffered due to the product recalls back in May 2016. They
recalled approximately 830,000 Ford and Lincoln vehicles to replace faulty side door latches. It also recalled
vehicles in May 2015 because of the safety failures of Takata airbags. Ford recalled 20,500 Kuga PHEV
 vehicles in Europe after its high voltage battery causes the cars to ignite. The company also recalled more
than 558,000 midsize SUVs in North America due to issues with the brakes.

• Dependence on U.S Markets :

Ford is highly dependent on the U.S and European market. It limits its profits and revenues. Experts
predict that the majority of future car sales will come from emerging markets such as China and India.
Ford’s sales in the US market has been declining year after year due to saturation of the market. In 2020,
it sold just over 2.04 million vehicles in the US, representing a decline of 15% compared to 2.4 million
vehicles in 2019. Dependence on the US market is becoming a major disadvantage for Ford. 
3. Opportunities :
• Increase Customer Base :
Ford is already working on penetrating the automobile market in India and China, they have an excellent
opportunity to tap into other small countries in the world and grow their customer base. From July to
September 2020, Ford’s sales in China rose by 25% to 164,352 units, which indicates the company’s
growing customer base in Asia.

• Digital Marketing :
Digital marketing is prevailing all over the world these days, so Ford has an opportunity to work on their
digital marketing skills to grow its customer and supplier engagements .

• Expand into Related Fields :

Ford has extensive experience in different sectors related to the auto industry. The company’s new CEO,
Jim Farley, recently announced that it would be expanding operations into software, fleet management, 
electric vehicle charging, and other related technology fields.

• Eco-Friendly Vehicles :
As Ford is already trying to be technologically adaptive, they have a fantastic opportunity to produce
fuel-efficient cars and commercial vehicles. For example, they can build vehicles that run on different
forms of energy. In this way, they have more options in designing eco-friendly vehicles. 
The 2018’s C-Max and Fusion Hybrid car model can be their most significant opportunity, as they have
already captured the market with this new model.
4. Threats :
• High Competition :
Ford is already facing cut-throat competition from its rival companies like Toyota, Tesla, and Tata. Ford
 keeps struggling to maintain its innovative position in the industry.

• Increased Prices of Raw Materials :

The rising raw material prices of steel and steel coil can directly affect the company’s cost and profit
margin.

• Strong Labor Unions :

Canadian autoworkers union is growing stronger and using its influence against automakers operating in
the country like Ford. In 2020, the union threatened to strike if Ford did not invest to safeguard its
employment in the long-term. To avoid the strike, Ford was forced to invest $1.4 billion in its Oakville and
Windsor plants in Canada as part of the deal with the union. 

• Regulations and compliance :

The compliance and regulatory threats for automobile brands have increased in the past years because
of environmental improvements going around the world. Vehicles are now inspected for public safety and
quality issues. Ford can face serious challenges if it fails to comply with the new regulations. Ford is
facing a civil lawsuit in the US Supreme Court after it was sued by two people who were injured in crashes
 involving second-hand Ford vehicles.
3. Competitor :

Mahindra & Mahindra Limited :

Mahindra & Mahindra Limited is an Indian multinational automotive manufacturing corporation

headquartered in Ludhiana. It was established in 1945 as Mahindra & Mohammed and later
renamed as Mahindra & Mahindra. Part of the Mahindra Group, M&M is one of the largest vehicle
manufacturers by production in India.
1. History :

Mahindra & Mahindra was set up as a steel trading company in 1945 in Ludhiana as Mahindra & Mohammed by
brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed. After India
gained independence and Pakistan was formed, Mohammed emigrated to Pakistan. The company changed its
name to Mahindra & Mahindra in 1948. It eventually saw business opportunity in expanding into
manufacturing and selling larger MUVs, starting with assembly under licence of the Willys Jeep in India. Soon
established as the Jeep manufacturers of India, the company later commenced manufacturing light
commercial vehicles (LCVs) and agricultural tractors. Today, Mahindra & Mahindra is a key player in the utility
vehicle manufacturing and branding sectors in the Indian automobile industry with its flagship UV Scorpio and
uses India's growing global market presence in both the automotive and farming industries to push its
products in other countries.
2. Marketing mix :

1.Product
Mahindra and Mahindra are involved in and cater to the demands which include farm equipment, utility vehicles,
and commercial vehicles. Their portfolio covers a wide range of products:
• heavy trucks, 
• light trucks, 
• two-wheelers, 
• SUV, 
• tractors and 
• school buses.
M&M has also built top industry-standard military vehicles and its Willys jeeps were used for transportation in
World War II. The esteemed company has also entered into partnership deals with Renault S.A and manufacture
what turned out to be an amazing Mahindra-Renault Logan. Some of the other Mahindra vehicles include-
Mahindra Scorpio, Mahindra Scorpio Getaway, Mahindra Bolero, Mahindra Pick-up, etc. 
2. Place :
Mahindra & Mahindra has a distribution network spanning the length and breadth of India. Mahindra & Mahindra has 300
dealerships spread across 240 cities. Around 1300 up-country outlets have been set up to serve the rural and semi-urban
areas in the country.
1. Dealerships
2. Retailers
 Mahindra & Mahindra has further broadened its horizon by collaborating with ecommerce platforms giving further boost to
the sales for online customers.

3. Promotion :
3. Advertising
4. Personal selling
5. Direct selling
4.Public relations
The promotional and advertising strategy in the Mahindra & Mahindra marketing strategy is as follows:
Mahindra & Mahindra advertises very smartly and adequately. Mahindra & Mahindra’s “Live young, Live free “campaign
became popular in 2012. Mahindra & Mahindra follows an aggressive promotional strategy in its marketing mix. It showed
Mahindra’s portfolio of vehicles in tough terrains of different parts of India. They made Varun Dhawan as their brand
ambassador to target the younger audience. The advertisement made with the actor had great content and complimentary
music. Their advertising strategy is not confined to just television. Mahindra & Mahindra do a lot of print, digital and media
advertising as well. They host on ground events like the Mahindra adventure initiative. Mahindra & Mahindra has a huge fan
base on social media. Various events and contests like the Dubsmash & win KUV100 contest are played on the social media
to create buzz and for customer engagement. It has around 17 million fans across various brands and over 40 million views
on different videos on YouTube.
4. Price :
The pricing policy of Mahindra and Mahindra for its vehicles is affected by various factors that determine the price of the
automobiles. Some costs are incurred at every stage which includes manufacturing to assembling the parts and making them a whole
product and the cost of distribution and marketing M&M has covered every corner of the country with products that are at a
reasonable price without any compromise on quality.
In order to meet the needs of every section of the masses, they have launched products for every income class that is suitable for
everyone. These noticeable changes are well-thought-out conscious decisions with the right prices to balance their portfolio and attract
a large number of potential consumers.
And they also use some other strategies.
3. SWOT Analysis:

1. Strengths :
• Low after sale cost :
M&M has a competitive advantage on after sale cost since it is lower than the industry average and also have high availability
of spare parts to different parts of the country.

• Strong Research & Development (R&D) :

M&M has a highly focused R&D department constantly focusing on developing new products and technologies. M&M majorly
focuses on Value addition and Value engineering (VAVE) approach, designing modularity, use of alternate materials etc.

• Excellent products according to Indian road conditions :

Mahindra & Mahindra’s SUVs are suited perfectly to Indian road conditions especially, Mahindra Scorpio which has been an
outstanding performer for many years.

• Market leader in multiple automotive segments :

Mahindra & Mahindra has leading market share in a tractor as well as in the utility vehicles segment. Also, the company has
strong market share in the commercial vehicle as well as passenger vehicle segment. Strong market share provides a
competitive advantage to the company and allows the company to focus on innovation.
2. Weaknesses :
• Geographic dependence :
M&M is depended for the majority of its revenue (over 60%) from India, which would affect its business in case of any
economic slowdown or high inflation.

• Overdependence on Automotive industry :

M&M’s major part of revenues come from its automotive business which makes it vulnerable to any breakthrough in the
industry or slowdown in the market.

• Product Recalls affects brand image :

M&M has had to recall many of its products in the recent past. For instance, In February 2015, M&M recalled XUV500
manufactured before July 2014. Such incidents affect the brand image of the company and consequently affect sales.
3. Opportunities :
• Emerging nations :
M&M should look forward to tapping the emerging nations around the world which have high potential. M&M should build
over its global footprint to tap the emerging markets.

• Growth in Indian automotive industry :

The Indian automotive industry is growing year on year with over 12% growth from the previous 3 years. The industry is
expected to grow at a CAGR of 13% in the next 4 years. This growth can be beneficial for M&M.

Increasing Demand for Hybrid Electric Vehicles :

There is an increasing demand for Hybrid Electric Vehicles (HEVs) around the world. The demand for HEVs is expected to
grow at a CAGR of 19% in the next 3 years. M&M has a strong portfolio of HCVs and is set to be benefited by the growing
demand.
4. Threats :
• Competition in the automotive industry: 
M&M faces intense competition from various automotive companies such as Tata Motors, Ford, Volvo and General Motors etc.
This can affect M&M’s market share and put pressure to constantly innovate on M&M.

• Competition in other businesses put pressure on M&M :

Mahindra group faces strong competition in other businesses as well. For example, its IT business faces competition from IT
giants such as Infosys. This reduces market share and increases competitive pressure.

• Stringent Regulations :
M&M is subject to strict regulations by the government and environmental agencies in terms of emission levels, noise levels
etc. Such regulations keep changing and thus increase compliance costs for the companies.
4. Competitor :

Nissan Motor :

Nissan Motor Co., Ltd., trading as Nissan Motor Corporation and often shortened to Nissan, is a
Japanese multinational automobile manufacturer headquartered in Nishi-ku, Yokohama, Japan.
1. History :

On June 1, 1934, the Tokyo-based Jidosha-Seizo Kabushiki-Kaisha (Automobile Manufacturing Co., Ltd. in
English) takes on a new name: Nissan Motor Company.
Jidosha-Seizo Kabushiki-Kaisha had been established in December 1933. The company’s new name, adopted in
June 1934, was an abbreviation for Nippon Sangyo, a “zaibatsu”(or holding company) belonging to Tobata’s
founder, Yoshisuke Aikawa. Nissan produced its first Datsun (a descendant of the Dat Car, a small, boxy
passenger vehicle designed by Japanese automotive pioneer Masujiro Hashimoto that was first produced in
1914) at its Yokohama plant in April 1935. The company began exporting cars to Australia that same year.
Beginning in 1938 and lasting throughout World War II, Nissan converted entirely from producing small
passenger cars to producing trucks and military vehicles. Allied occupation forces seized much of Nissan’s
production operations in 1945 and didn’t return full control to Nissan until a decade later.
2. Marketing mix :
1.Product :
Nissan offers a varied product range for its customers and appeals beyond categories and segments, which is very important for
a firm that appeals to customers from across segments, and has to function without market restrictions. Car industries,
worldwide have four segments in which the vehicles are categorized among these segments based on their features, but majorly
according to pricing, which further appeals to customers accordingly. 
The company's product portfolio includes :
•  sedans
• compact cars
• SUVs
• sports cars
• mini vans
• kei cars
• light commercial vehicles
• related parts
2. Place :
Nissan has more than 300 dealerships across India which are strategically placed across the country. Nissan also has an
integral advantage of being present in the manufacturing and export hub of Asia, which has locus points around Japan, India,
and Singapore, which aims at further exports throughout the world, apart from a very strong dealer network of Nissan and
Renault. Talking of the sales and service function, Nissan has strategically placed its complete dealership network, in almost
all major cities and related popular towns to strengthen, and this placement has paid back, by making its Micra model, one of
the most popular hatchbacks in India, with high sales.
Their main distribution channels include :
1. Dealerships
2. Retailers

3. Promotion :
It has a very nominal promotion plan, which is a complete mixture of combined promotional activities and is carried out across
mediums and publications. Apart from running advertisement campaigns on televisions, print media, on the internet and a
combination of charity events. Nissan organizes rallies and outdoor events for its customers, in the form of fun drives for cities,
and specialized club based off road events for customers from its SUV portal, which attracts further customers.
3. Advertising
4. Personal selling
4. Price :
Depending upon its strategy of offering vehicles across segments and categories, the pricing function works in direct
correlation with the product function, and Nissan has been known to offer reasonable and logical price to its cars. This is the
reason for its widespread popularity and reliance. It has a varied price catalogue, which further appeals and attracts customers
from all income groups. Also, in car and auto industry, a major aspect of consideration is the after sales function and
maintenance factor of a car, and Nissan has advantage in this section as well, because its spares are nominally priced, apart
from rational service and maintenance charges across company owned workshop network.
And they also use some other strategies.
3. SWOT Analysis :

1. Strengths :
• Technological innovation :
In the automobile sector, technology innovation is the key to rapid growth. Nissan Pro-pilot, an automated driving system, is one of the
company’s innovations. It is a pedal that allows for acceleration, deceleration, and complete braking with just one pedal. Nissan’s Propilot
is geared for highway use and seeks to reduce the driver’s workload by providing a combination of steering, acceleration, and braking that
can operate in fully autonomous mode.

• Strong Cash Flow :

Automobile sales dropped in 2018. Nissan’s net income and operating income both fell. Operating cash flow, on the other hand, is kept at
a healthy level. In 2018, operating cash flow totalled 1,450.9 billion yen, up from 1,071.25 billion yen the previous year.

• Large Product Portfolio :
Nissan offers a diverse product line to meet the needs and lifestyles of various consumer segments. The company boasts a wide range of
automobiles, from sedans to pickup trucks, SUVs, and sports cars. Nissan has shown to be a savvy vehicle company with a diverse product
portfolio that has touched the lives of many different customer categories.

• Geographic Presence :
They manufacture in 20 countries and have a sale in more than 170 countries. Their major markets are Japan, North America, China,
Mexico and the Middle East.
2. Weaknesses :
• Recalls :
The most damaging thing to any manufacturer is product recalls. Nissan has faced such issues in the past. They had recalled
639480 cars in USand 129,000 vehicles in Canada and other countries for faulty hood latches and wiring harnesses that can
short circuit.
They had recalled 768000 vehicles as moisture could seep through the driver side floor and cause an electrical short, which
could lead to a fire.
These recalls damage the image of the company and reduces the customer’s trust on the brand.

• The threat to brand value: 

Nissan slipped 10 places in the Brand Finance report. This slip in the brand value accounted to $300 million. This is a huge
problem for them.
3. Opportunities :
• Automobile industry Growth :
The automotive industry is expected to grow at a rate of CAGR of 6% for 2015-2019 and reach a value of $1.5771 trillion by
2019.

• Increase in Market Share :

Nissan currently owns 6.5% market share. With the industry to expand they have a huge opportunity to grow their business.
Also, they are already trying out new business territories with Renault which has given them an edge in this endeavour.

• Electric Vehicles :
The demand for electric vehicles is going to be approx. 7.5 million units by the end of 2020. The demand is growing at a CAGR
of 29.4% for the period 2015-2020. Nissan along with Renault plans to put 1.5 million electric vehicles on roads worldwide by
2016.

• Alternate Fuels :
The demand for hybrid electric vehicles is on a steady rise due to environmental concerns with traditional fuel and prices of
crude. The key markets for HEVs include the US, Western Europe, and Japan and China.
4. Threats :
• Competition :
They have intense competition for market share and sales with many manufacturers. BMW, Ford Motor, GeneralMotors,
Honda Motor, Isuzu Motors, Kia Motors, Mazda Motor, Mitsubishi Motors, Navistar International, PeugPeugeot-Citroen,
Suzuki Motor, Toyota Motor, and Volkswagen are to name a few.

• Global Economy :
Fluctuations in foreign currency and the current economy can impact sales and demand of the cars in the foreign markets.
The company is heavily dependent on many countries for procurement of raw materials, components and services. Sharp
changes in the global economy can affect the production and prices of the cars drastically.

• Changing Industrial Environment :

In 2019, the automobile industry entered a difficult phase globally. Globally, sales of electric motors have increased, while
overall car income has decreased. Furthermore, customer preferences and demands for styles have evolved. In recent years,
demand for SUVs and hybrids has exploded. Nissan is dealing with a wide range of internal issues. Furthermore, in
comparison to its closest competitors, its R&D price range has remained significantly lower. All of this is making it difficult for
the logo to expand its market share. 
5. Competitor

Hyundai Motor Company :

Hyundai Motor Company, often abbreviated to Hyundai Motors and commonly known as Hyundai,
is a South Korean multinational automotive manufacturer headquartered in Seoul, South Korea,
and founded in 1967. 
1. History :

In 1967, Hyundai Motor Company was founded. The following year, the construction of the company’s Ulsan
assembly plant was completed. Today, it is the world’s largest integrated automobile manufacturing facility, with
an annual production capacity of 1.6 million units. With a global vessel fleet operated by Hyundai Glovis and its
own steel-making affiliate, Hyundai Motor Group controls the whole value chain.
2. Marketing mix :

1.Product :
First model of Hyundai Motor Group was Cortina in year 1968 and it was co-produced with Ford Motor Company. In year
1975, company launched its first solo-effort car Pony and started its export to different countries like Ecuador and later to
Canada. In 1986, Hyundai launched its vehicles in United States and its car Excel was declared one of the best ten products.
Currently Hyundai’s product folio includes engines, commercial vehicles and automobiles are as follows-
• Sedans
• sports car
• Hatchbacks
• Vans
• SUVs
• Concept car 
• Commercial vehicles
2. Place :
Vehicles belonging to Hyundai Motor Company are sold in nearly one hundred and ninety three countries in and across globe.
It has a proficient distribution channel that comprises of dealers, salespersons, retailers and all these are possible because of
nearly 5,000 showrooms and dealerships. Company employs nearly 75,000 employees, who are competent enough to manage
good revenues. Hyundai has to penetrate all markets and hence has undertaken numerous steps to reach rural parts of every
country with a number of dealership outlets.
1. Dealerships
2. Retailers
Hyundai is fourth-largest manufacturer of vehicles in global market in 2016 and has largest manufacturing facility for
integrated automobile in world. It is located in Ulsan, in South Korea and has 1.6 million units of production capacity on
annual basis. Hyundai believes in its own qualitative products and services and hence has opened various manufacturing
plants in different regions.

3. Promotion :
Hyundai recognises the potential of promotional activities and hence has always gone for different and varied marketing
strategies to create positive brand awareness. In year 2012, company started a brand campaign globally that emphasised on its
Modern Premium thinking process.
3. Advertising
4. Personal selling
5. Direct selling
4. Price :
Hyundai is a global brand that has been tapping the emerging markets successfully. Its pricing policies have helped it to
maintain its position as one of the best automakers in industry. In order to cater to different sections of society it has
manufactured numerous vehicles and kept varied pricing policies for them. Some of its cars belong to competitive pricing
category, whereas others like luxury car Genesis belongs to premium pricing category.
In order to make its penetration policy successful it has managed to keep its prices affordable for consumers. Hyundai has
been known for supplying value-based products and its prices have been set at a competitive rate when compared to
competitors. It can also be said to be value based pricing, because as the value provided in each model changes, the price of the
car rises. It gives several trade benefits as well to its dealers to promote the products from time to time.
3. SWOT Analysis :
1. Strengths :
• Advanced marketing :
Hyundai hires celebrities as brand ambassadors to represent their brand globally. Therefore influencing the tastes and
preferences of the customers and making the brand more approachable and user-friendly. Hence increasing the sales and
proving itself to be successful in their marketing activities. 

• Global presence :
Hyundai operates in 190+ countries across the globe. It does a great job in handling the supply chain across the globe and
reaches its target customers through 6000 dealers worldwide and therefore earns high revenues, adding to its sales.

• Strong business model :

Hyundai has a strong business model and its ability was proved during the Covid-19 pandemic. While a large number of
automobile brands had a tough time struggling with pandemics in terms of sales and revenue, Hyundai emerged relatively
unscathed. 

• High sales volume :

Being the world’s 6th largest car-maker, Hyundai produces and sells its automobiles in a huge proportion which implies its
strong market position in the global market. Although due to the Covid-19 pandemic, the sales dropped with a little different but
still did better than its competition.
2. Weaknesses :
• Fuel engine ads :
The advertising of the fuel engines of the company takes place in a few regions only and claims to be an accountable
organization when it comes to the environment. Thus sending a perplexed, unclear, and dual image of the company to its
customers.

• Lower Market Share :

Maintaining its market share globally is a difficult task for Hyundai. The automobile industry is among one of the most
profitable industries. With an increase in the total number of competitors, there has been a decline in Hyundai’s market share.
Increasing competitors and their growth is giving the company a tough fight.
3. Opportunities :
• Electric cars :
Hyundai has gained a reputation with their electric and hybrid cars. This is also a great opportunity for them. The company
should try making these available at lower costs and increase their production for the same so that Hyundai utilizes this
opportunity to its fullest.

• Growing and developing markets :

The ever-growing fast economy and the new trends in consumer behavior bring various new opportunities with time.
Developing nations of Asia, Europe, and Latin America have huge growth potential. Therefore the company should keep doing
the research and development of its products and push their products in developing markets. Hence ensure their growth with
the market growth

• Latest technologies:
Automobile companies are investing in the latest technologies to make their product lines more attractive and improve the
performance of individual products. Hyundai must also continue to focus on the latest technologies so that its products
continue to outperform the rivals in the global market. AI, automated driving, and electric mobility are some of the hottest
areas where companies are investing most of their R&D money. 
4. Threats :
• Substitute :
Hyundai Motors does offer its vehicles at a lower cost as compared to that of the competitors’ brands, but many people still
depend on public transportations like busses, trains, etc. instead of owning the vehicle. Hence, the use of such substitute modes
of transportation is the biggest threat to the company’s growth.

• Competitors :
Toyota, Honda, Tesla, BMW, Ford, and many other companies give Hyundai tough competition. The increasing growth rate of
the competitors results in a reduction of Hyundai’s market share. Hence a threat for the company.

• Government policies :
Being having an international presence, the company tends to follow the policies of various countries and governments.  The
unending fear of any sudden change in the policies and the environment thus remains constant.