Nissan in ASEAN

Introduction

The report will introduce about Nissan Motor Co., Ltd – Japanese automobile manufacturing company that is the one of largest companies in the automotive industry. The report including the background information of Nissan, their SWOT analysis – strengths, weaknesses, opportunities, and threats. The company was founded in 1933 named as Jidosha Seico Co., Ltd. And the company was changed name to Nissan Motor Co., Ltd in 1934. Automobiles, outboard motors, and forklift trucks are products of Nissan.

SWOT ANALYSIS * Strengths: * Strong financial performance According to the annual report of Nissan (2012), the revenue of the company has been growing over the last few yearfrom 7,517,277 yens in 2010 to 9,409,026 yens in 2012. Firm’s net operating income and net profit increased as well * Innovative culture

The strategy of Nissan is invests 4.5% of their revenue to Research & Development which is the one of the sources of its competitive advantage of Nissan. It helped Nissan develop the most popular electric vehicle – LEAF. * Growing brand reputation

Nissan was the fastest growing automotive brand. It’s value “rose by 30% and became the 73rd most valuable brand in the world” (Interbrand, 2012). Nissan improved in quality, reliability, innovation and growing customer reach. * Good service

Nissan staff trained in the basic techniques to the highly technical, their responsibility does not stop at the sale but also the attentive service, answer questions, and solve problems of consumers about their products. * Incentive from USA market

Sales in US rose 5.4% while sales worldwide rose 1.4% from the previous year. Altima of Nissan has gained popularity in the U.S market and brought about higher profits for Nissan. Altima popular in the U.S than Camry of Toyota and Accord of Honda. * Weaknesses:

* Product Recalls After 2012, Nissan has recalles 814,000 cars around the world because of the problem steering wheel.They said that they would tightening the bolts or replacing the steering wheel to fix the problem. * Increase time to market

A Nissan product prior to market needs some time to study and test. However, checking the quality of the new product takes a lot of time and money plus deposits weak, making it difficult for Nissan to achieve their target. * Focus on cost

For reasons which should raise major Nissan has always focused on how to mobilize resources, which makes them very easy to neglect to consider the quality of the product. * Opportunities: * Environment Friendly Vehicles

Environmental issues are a matter of major concern all over the world, and how to waste less harmful to the environment is the big question for all of humanity. So the introduction of environmentally friendly vehicles gives Nissan the opportunity to thrive in the car manufacturing industry. * Strategic partnerships

Nissan has always done a good job of building relationships with strategic partners. Unlike competitors, Nissan has always enjoyed the benefits from the relationships they have built. Nissan has established strategic alliances and partnerships with other companies espeacially was the alliance with Renault which was established in 1999. Another notable partnership was created with Daimler AG. Nissan has been important technologies from the partnerships. And they are working hard to create more coordination with Renault and Daimler AG. * Increasing Fuel Price

The rise of fuel prices has led to sales of fuel-efficient cars Nissan increased significantly. The introduction of fuel-efficient vehicles has become one method to solve the difficult problem of fuel price increases. * Threats:

* China Slump China is the biggest market of Nissan in Asia, but the market has caused great difficulty for Nissan. Because of the political issues between Japan and China so Chinese stared boycott products from Japan’s brands. Sell of Nissan in China fell 5.3% from th4e previous year. * Sale Fall In Japan

The financial support from the government for the purchase of fuel-effcient vehicles will end in September of. This work has led to reduced consumption of vehicles. * Economic Slump  The economic downturn has led to the car business in Europe fell sharply. This has led Nissan losses about 11.2 billion Yen. Sales in Europe decresed 7.5% from the previuos year.

* Nature Disaster The production of a number of manufacturing plants in the countries where natural disasters often happen such as Japan, Indonesia, and China frequently interrupted by the impact of natural disasters * Competition

In the future, some car manufacturers such as Toyota, Honda, Ford will launch the new model form. so not only add the Nissan compete on price but also the vehicle model. * Appreciating yen exchange rate

Nissan profits largely derived from the market in other countries, so the conversion of foreign currency into yen will cause corporate profits decline.

* Renault Collaboration with Renault, Nissan helped solve some financial problems but also inhibits their growth in Europe. Because Renault always follow the rules and their culture which is based on compromise Nissan - Renault is Nissan can not develop in Europe in the other direction Renault.

Conclusion In conclusion, Nissan Motor Co. is the largest automaker around the world. They produced many high quality products in more than 100 countries on the world. The company has slogan of “thinking ahead”. Nissan has some strengths in the company’s organization and strategy with some weaknesses about deposits too.

Company still has some opportunities to develop especially in U.S market , and their best new products – environment friendly vehicles in times of rising fuel prices. Beside that, it has few threats in times of tension between Japan and the countries making up stories business in the biggest market in Asia severely reduced.

Overall, Nissan remains the largest car manufacturing company in the world. With many strengths and opportunities, they can develop easy in future. However, their low deposit hard to help get over in tough economic times and rising political tensions.

Recommendations First thing Nissan need to fix and improve is about LEAF series. LEAF is 100% electric car. However, it has the smaller range of seat height adjustment, the GPS map software is at least five years out-of-date for our neighborhood, and more disappointing of LEAF is about “Carwings” service which expected to show the charging stations in the region.

List of References Ma.J and Hagiwara.Y, Nissan Posts Slowest Profit Growth Among Japanese Automakers (1), 2013, http://www.businessweek.com/news/2013-05-10/nissan-reports-slowest-profit-growth-among-japanese-automakers Nissan Global (2013). Corporate Information. Available at: http://www.nissan-global.com/EN/COMPANY/ Nissan Release All – Nissan DAYZ (2013) http://www.nissan-global.com/EN/NEWS/2013/_STORY/130606-01-e.html Strom.S,