Strategic analysis of Nissan group

Résumé du document

“As the crisis has evolved, Nissan has remained focused on the recovery, guided by our corporate recovery plan. Although our company is still operating in crisis mode, Nissan is on track toward a complete recovery. In fiscal year 2009, we returned to profitability after losses in the prior year.” Those are the words of Carlos Ghosn, President and Chief Executive Officer of Nissan PLC group. He said the automotive industry crisis of 2008–2010 was a part of a global financial downturn.

The crisis affected European, American and Asian automobile manufacturers. Even if figures are not good as they used to be, Nissan managed to recover and to make profit again. Some companies in this market have not managed to do the same. We can for example speak about General Motors, the world's second largest automaker. $ 50 billion has been given by the American government to help this important firm to avoid bankruptcy. The principal question today is to understand how Nissan managed to keep its business afloat and what they are going to do to find back the income they had in the past.

To answer to this question, we first have to analyze the firm in its universality, when and where does it born? What are their competencies? Who are the shareholders? Then we will have to talk about the automotive market: What has happened over the last few years? Who are the competitors? Those two parts will help us to answer to our previous question, and to study the strategy of the firm: What are the strategies of Nissan, and what does its strategy looks like today. To finish we will try to know if its strategy has been good thanks to the result of the firm.

Extraits

[...] This fact is risky for Nissan. They are risks associated with country in operation, financial transaction, and government policy. As we can see in the table above only 18% of the sales are made in Japan. More importantly, over the last few years, this percentage has decreased, which means that Nissan is more and more dependant of the overseas Market. Lack of Diesel car created by Japanese firm. In United States and in Europe a lot of new car buying by consumer is diesel car. [...]

[...] Strategic analysis of Nissan group Summary Abstract 4 Introduction 5 Methodology 6 RESULTS 7 Nissan's Presentation History of the firm 9 a. The birth of the company b. Its expension in the United States and in Europe Organisation 10 a. Core competency of the Firm: 10 b. Value chain Stakeholders : 11 Industry Analysis SWOT Analysis 12 a. Internal environment Strengths: 12 Weaknesses: 13 b. External analysis 14 Threats 14 Opportunity 16 c. Sum up : Porter's Five Forces: 18 Competitive Rivalry within an industry 19 Threat of new entrants 19 Threat of substitute products 19 Bargaining power of suppliers 19 Bargaining power of customers 19 Action plan Marketing Plan Resources and Corporate culture 21 The Strategy What has Nissan's strategy been so far? [...]

[...] Moreover the research needed to make an auto is also a substantial barrier to entry. Threat of substitute products The rising price of oil, an important complementary product, is likely to affect some firms more than others depending upon the vehicle composition. Recent rising fuel prices are likely to have a greater impact on product such as pick-up trucks and sports utility vehicles. In the same way, the price of steel has increased over the last few years and it has an impact in the market. [...]

[...] The actual new technology invented to compensate the petrol shortage such as green car or hybrid car could be a good way for the Japanese firm Nissan to differentiate its product into the market. Sources: Articles: Book: Let's just add that some of the goods made to build the car are made by Renault since the alliance in 1999. Source: Nissan annual report 2009-2010. Figures take from the website http://www.autonews.fr/ Growth rate of new car in France Worldwide car production Oil prices between 1985 and 2008 Evolution : ( 7517.3 - 8437.0 8437.07 *100=-10,9% Evolution : 233.7 - 42.4 233.7 *100=118% Gross profit = Net sales Cost of goods sold. [...]

[...] That means that 75% of the cars sales in the world were sold by the top 11 automaker. -New competitors: The "older" has to face new entries in the global marketplace As we can see from the figures above 15% of cars produced worldwide are made by others companies, such as BYD Auto (Chinese company founded in 1982) Dongfeng Motor Corporation, brilliance (Chinese brand created in 1993), Guangzhou Aumobile (Chinese automaker founded in 2000) and many others. Despite the important dominance of the top eleven automaker, they are many emerging countries (Especially Asia country) attempting to build national champions in the auto builders market. [...]