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Nissan Swot Analysis

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Nissan Motor Company Ltd (Nissan) is Japanese Company engaged in the automotive industry worldwide. The Company, including its associated brands, designs, produces and sells more than 3.7 million passenger cars and commercial vehicles in more than 190 countries. The Company is engaged in manufacture and sale of passenger automobiles, as well as the supply of automobile parts. Major overseas market for Nissan included Europe, North America, Africa, New Zealand and China.

The Company's major production sites are located in Japan, with additional facilities located in the United States, Mexico, the United Kingdom and Spain. In 1999, the Company established an alliance with Renault SA, a French automobile manufacturer. The alliance is …show more content…

Weakness: -

1) Dependence in overseas market: - Nissan produced a total of 3,378,000 units globally in FY2004. 1,482,000 million units of them were made at home and 1,896,000 units abroad. Nissan produces more vehicle abroad than at home. Increasingly dependent on overseas production indicating their pace of globalization. Nissan overseas dependency of operating income is over 50% which show they are in the fast lane of globalization.

The major risk of increasing dependency in other market is the risk associated with country in operation, financial transaction, and government policy. The figure below shows the declining share of total revenue at home and increasing share of overseas revenue. FY05-06 shows other foreign countries share as 10.6 against the 4.7 in FY03-04 which offset the revenue of Japan by 5%, while other proportion of total revenue remains the same.

2) Product Innovation time lag; - Nissan launched two new or redesigned vehicles, in comparison to 14 in the three previous years. Nissan has misjudged its model strategy in the United States over the past few years. Like the other Japanese automakers, the company was a relative late-comer to the country's high-profit margin and high-volume pick-up markets. Nissan's late entry meant that it has suffered from the decline in the sector as a result of rising fuel prices in the United States, While Toyota and

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