SWOT analysis of Nissan
This is Nissan Motor Company SWOT analysis for 2013. For more information on how to do SWOT analysis please refer to our article.
Company background
Name Industries served Geographic areas served Headquarters Current CEO Revenue Profit Employees Parent Nissan Motor Company Ltd Automotive, Finances Worldwide Japan Carlos Ghosn ¥8.773 trillion (2011) ¥319.22 billion (2011) 155,099 (2011) Nissan Group Bayerische Motoren Werke AG, Chrysler Group LLC, Daimler AG, Ford Motor Company, General Motors Company, Honda Motor Company, Tata Motors, Ltd., Toyota Motor Corporation, Volkswagen AG and many other automotive companies.
Main Competitors
Nissan Motor Company is a Japanese corporation manufacturing vehicles and maritime equipment. It was the sixth largest automotive company in terms of sales in 2011. You can find more information about the business in its official website or Wikipedia’s article.
SWOT
Nissan SWOT analysis 2013 Strengths Weaknesses
1. 2. 3. 4.
Strong financial performance Strategic partnerships Innovative culture Growing brand reputation
1. Product recalls
Opportunities
1. Growing global demand for environment friendly vehicles 2. Growth through acquisitions 3. Increasing fuel prices 1. 2. 3. 4. 5.
Threats
Declining fuel prices Global competition in automotive industry Rising raw material prices Natural disasters Appreciating yen exchange rates
Strengths
1. Strong financial performance. Nissan’s revenue has been growing over the last few years from 7,517,277 billion yens in 2010 to 9,409,026 billion yens in 2012. Firm’s net operating income and net profit increased as well. Due to such strong financial performance, Nissan was able to achieve at least temporary competitive advantage over its competitors. 2. Strategic partnerships. Nissan has established more than one strategic alliances and partnerships with other companies. The most successful was an alliance with Renault, which was established in 1999 and continues to date while benefiting both partners. Another notable partnership was created with Daimler AG. Nissan has acquired some very important technologies from this partnership and is working further to create even more synergies with both Renault and Daimler. 3. Innovative culture. The business invests 4.5% of its revenue to R&D. This strategy helped Nissan to develop currently the most popular electric vehicle (LEAF) and some important innovations in production process. Nissan’s R&D capabilities are one of the sources of its competitive advantage. 4. Growing brand reputation. Nissan’s brand was the fastest growing automotive brand in 2012, according to Interbrand. It’s value rose by 30% to nearly $5 billion and became the 73rd most valuable brand in the world. Although modest position compared with other automotive companies, Nissan’s brand value growth proves significant improvement in quality, reliability, innovation and growing customer reach.
Weaknesses
1. Product recalls. Over 2011 and 2012, Nissan has recalled at least several hundred thousands of various model cars. Although Nissan recalls comparably less cars than its competitors do, such situation still hurts firm’s brand reputation and customers loyalty.
Opportunities
1. Growing global demand for environment friendly vehicles. Vehicles have been a major factor in intensifying greenhouse effect by emitting large quantities of CO2 and heavily polluting air. Consumers are more aware of this negative impact and are more likely to buy environmentally friendly vehicles that emit much less CO2 and are fuel-efficient. 2. Growth through strategic partnerships. Nissan has great experience in creating strategic partnerships that bring synergy, new capabilities and technologies to the firm. In the current situation, where many firms seek ways to cut costs, Nissan should try to establish many more partnerships and alliances and benefit from the advantages that come with them. 3. Increasing fuel prices. For years, Nissan has been favoring fuel-efficient cars with hybrid, hydrogen or electrical engines. Increasing fossil fuel prices encourages the consumers to buy such cars and Nissan is already in position to offer many car models with various environment friendly engines.
Threats
1. Decreasing fuel prices. There is high possibility that future fuel prices will drop, as more shale gas fuels will be extracted. For this reason, hybrid, hydrogen or electric cars may become less attractive to cost conscious consumers. 2. Global competition in automotive industry. The competition between Nissan and other automotive companies will intensify in the future. GM, Toyota, Hyundai, Ford and other corporations will have to introduce new models faster and compete more on the price rather than differentiation, which lowers the profits and damages the results of the companies. 3. Rising raw material prices. Rising prices for raw metals will lift the costs for auto manufacturers and result in squeezed profits. 4. Natural disasters. The business has manufacturing facilities in Japan, Thailand, China and Indonesia. These countries, including others, are often subject to natural disasters that disrupt manufacturing processes and results in lower production volumes and losses. 5. Appreciating yen exchange rate. Most of Nissan’s revenue comes from foreign countries. Appreciating yen exchange rate against other currencies means lower profits for the company.
doc_561809898.docx
This is Nissan Motor Company SWOT analysis for 2013. For more information on how to do SWOT analysis please refer to our article.
Company background
Name Industries served Geographic areas served Headquarters Current CEO Revenue Profit Employees Parent Nissan Motor Company Ltd Automotive, Finances Worldwide Japan Carlos Ghosn ¥8.773 trillion (2011) ¥319.22 billion (2011) 155,099 (2011) Nissan Group Bayerische Motoren Werke AG, Chrysler Group LLC, Daimler AG, Ford Motor Company, General Motors Company, Honda Motor Company, Tata Motors, Ltd., Toyota Motor Corporation, Volkswagen AG and many other automotive companies.
Main Competitors
Nissan Motor Company is a Japanese corporation manufacturing vehicles and maritime equipment. It was the sixth largest automotive company in terms of sales in 2011. You can find more information about the business in its official website or Wikipedia’s article.
SWOT
Nissan SWOT analysis 2013 Strengths Weaknesses
1. 2. 3. 4.
Strong financial performance Strategic partnerships Innovative culture Growing brand reputation
1. Product recalls
Opportunities
1. Growing global demand for environment friendly vehicles 2. Growth through acquisitions 3. Increasing fuel prices 1. 2. 3. 4. 5.
Threats
Declining fuel prices Global competition in automotive industry Rising raw material prices Natural disasters Appreciating yen exchange rates
Strengths
1. Strong financial performance. Nissan’s revenue has been growing over the last few years from 7,517,277 billion yens in 2010 to 9,409,026 billion yens in 2012. Firm’s net operating income and net profit increased as well. Due to such strong financial performance, Nissan was able to achieve at least temporary competitive advantage over its competitors. 2. Strategic partnerships. Nissan has established more than one strategic alliances and partnerships with other companies. The most successful was an alliance with Renault, which was established in 1999 and continues to date while benefiting both partners. Another notable partnership was created with Daimler AG. Nissan has acquired some very important technologies from this partnership and is working further to create even more synergies with both Renault and Daimler. 3. Innovative culture. The business invests 4.5% of its revenue to R&D. This strategy helped Nissan to develop currently the most popular electric vehicle (LEAF) and some important innovations in production process. Nissan’s R&D capabilities are one of the sources of its competitive advantage. 4. Growing brand reputation. Nissan’s brand was the fastest growing automotive brand in 2012, according to Interbrand. It’s value rose by 30% to nearly $5 billion and became the 73rd most valuable brand in the world. Although modest position compared with other automotive companies, Nissan’s brand value growth proves significant improvement in quality, reliability, innovation and growing customer reach.
Weaknesses
1. Product recalls. Over 2011 and 2012, Nissan has recalled at least several hundred thousands of various model cars. Although Nissan recalls comparably less cars than its competitors do, such situation still hurts firm’s brand reputation and customers loyalty.
Opportunities
1. Growing global demand for environment friendly vehicles. Vehicles have been a major factor in intensifying greenhouse effect by emitting large quantities of CO2 and heavily polluting air. Consumers are more aware of this negative impact and are more likely to buy environmentally friendly vehicles that emit much less CO2 and are fuel-efficient. 2. Growth through strategic partnerships. Nissan has great experience in creating strategic partnerships that bring synergy, new capabilities and technologies to the firm. In the current situation, where many firms seek ways to cut costs, Nissan should try to establish many more partnerships and alliances and benefit from the advantages that come with them. 3. Increasing fuel prices. For years, Nissan has been favoring fuel-efficient cars with hybrid, hydrogen or electrical engines. Increasing fossil fuel prices encourages the consumers to buy such cars and Nissan is already in position to offer many car models with various environment friendly engines.
Threats
1. Decreasing fuel prices. There is high possibility that future fuel prices will drop, as more shale gas fuels will be extracted. For this reason, hybrid, hydrogen or electric cars may become less attractive to cost conscious consumers. 2. Global competition in automotive industry. The competition between Nissan and other automotive companies will intensify in the future. GM, Toyota, Hyundai, Ford and other corporations will have to introduce new models faster and compete more on the price rather than differentiation, which lowers the profits and damages the results of the companies. 3. Rising raw material prices. Rising prices for raw metals will lift the costs for auto manufacturers and result in squeezed profits. 4. Natural disasters. The business has manufacturing facilities in Japan, Thailand, China and Indonesia. These countries, including others, are often subject to natural disasters that disrupt manufacturing processes and results in lower production volumes and losses. 5. Appreciating yen exchange rate. Most of Nissan’s revenue comes from foreign countries. Appreciating yen exchange rate against other currencies means lower profits for the company.
doc_561809898.docx