“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.
[...] External analysis Threats Rising Commodity Prices: Due to the economic expansion of China, changes in commodity prices could affect the costs incurred by Nissan and by the others brand. For example the price of steel has increased over the last few years. (Graph Below.) Market saturation in developed country UK automotive market is expected to face a challenging 2011 with sales forecast to fall by over the year. Sales of new cars across the United Kingdom rose above two million units during 2010,”Article extract from the newspaper companies and market. [...]
[...] Renault holds today of Nissan shares, while Nissan holds 15% of Renault share. Organization Core competency of the Firm: With this slogan “shift the way you can we understand the core competency of the company. Nissan is an innovating, a changing brand. Let's remind that even if innovation is a really good thing for a firm, Nissan has suffered from this need of innovation. In 1999, the company was almost bankrupt, because they invested too much. Let's also said that that investment has been possible because Nissan saved money, without buying raw material but created them. [...]
[...] Jean-Pierre Diernaz, the marketing director of Nissan Europe considerate Nissan as a “challenger in a French article extract from the newspaper journal du dated from the beginning of 2009. They are trying to grow up this position, even if that includes taking more risk than the market leaders. As a challenger, they must react more quickly to innovations . That is what they have always said and that's what they have done. This risky behavior has had much impact. Today, as yesterday, Nissan is considered as an innovative company. [...]
[...] Brand Number of sales( in million of cars) Toyota 7,23 Général 6,46 Motors Volkswagen 6,07 Ford 4,68 Hyundai 4,65 PSA 3,04 Honda 4,65 Nissan 2,74 Fiat 2,46 Suzuki 2,39 Renault 2,38 TOTAL 46.75 The table above lists the top 11 worldwide brand in tern of sales in 2009. As we know that they were approximately 62,000,000 cars sold this year. 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. [...]
[...] We will focus on the following plan: The theory part of this report has been found in a strategic Analysis books. Information about the firm Nissan has been finding on internet. Explanations about the management in the firm have been found in some books related on the Japanese way of management. To finish the majority of the figure of the company are coming from Nissan reports. RESULTS Some key figures are very important to understand the firm and the actual auto market. [...]
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