NISSAN SWOT ANALYSIS 2016 WWW.CHESHNOTES.COM/category/SWOT-analysis

Introduction (cheshnotes.com) Nissan is the second largest automaker in Japan after Toyota. It is a

distinct brand in its category. Last year, Nissan alone recorded a sales of more than 5.4 million vehicles globally. The Renault Nissan alliance on the other hand achieved a record sales of more than 8.5 million vehicles. The strong overall performance was based on record sales in US, China and Europe. Despite the macroeconomic slump in Russia and Brazil, the sales of the group globally were steady. In US the brand's sales grew by 7% from 2014. Cheap gas prices and low interest rates were the main reason.

Intro contd.. (cheshnotes.com) These factors fuelled a rise in the sales of SUVs and trucks. However,

Nissan's Leaf Electric car's sales were impacted by the low gas prices. India and China have emerged as profitable markets for the Renault Nissan Alliance.  The brand has also focused on technological innovation. It released a semi autonomous driving technology named pro-pilot. This is different from automated driving. Pro-pilot can assist drivers in particular situations. In terms of technology, Nissan has especially focused upon safety and style in its models. Nissan's sales were impressive in China. In India it emerged as the best selling European brand. Nissan is also a leader in the zero emission vehicles category. (cheshnotes.com)

Nissan Strengths (cheshnotes.com) - Strengths:

Fast growing brand awareness and reputation globally.

Innovative technology

leader in zero emissions

Strategic partnership with Renault and Russia's Avtovaz

Excellent sales and financial performance worldwide                                                                            

Strengths explained…   As a vehicle maker, the reputation of Nissan is growing fast globally. In 2015, the brand

registered impressive sales world wide except in a few markets. Its performance has been

great in Asia and US. In US, its growth was primarily driven  by the sales of SUVs and trucks. The

brand focuses on innovative technology and pays special attention to safety. It released a semi

autonomous driving technology called pro pilot. Pro-pilot can assist the drivers in specific

conditions. The brand's alliance with Renault and Avtovaz has also brought impressive results.

The alliance is the fourth largest car maker in the world. Overall, the financial performance of

Nissan has been excellent worldwide. The brand is a  leader in electric vehicles category. It sells

one out of every two pure electric vehicles sold worldwide. Nissan's LEAF is the best selling EV

globally. Its more than 201,000 pieces were sold since its launch in 2010.

Nissan Weaknesses: (cheshnotes.com)

Weaknesses:

 falling sales in home market

Its sales kept falling in its home market Japan. Except that 2015 has

proved a relatively profitable year for Nissan. Based on it, Nissan has

managed its weaknesses well. Its sales fell in Brazil and Russia due

mainly to the macroeconomic slump in these markets. The weaknesses

of Nissan are very few. Overall it has performed splendidly and

sustained its position globally.

Opportunities: Increasing demand for zero emission vehicles Increasing popularity in the Indian markets. Growth through acquisitions and partnerships

Opportunities… The demand for zero emission and environment friendly vehicles has

grown. This presents a major opportunity for Nissan. It is particularly

strong in the zero emission and environment friendly vehicles category.

Nissan's popularity in India has grown very fast. Particularly, its Duster

and Quid models have been highly successful there. It has acquired the

position of the leading European brand in the Indian market. Moreover,

the brand has obtained excellent results through its partnership with

Renault and Avtovaz. Such strategic partnerships with other brands or

acquisitions could help it find faster growth globally.

Threats: Rising prices of raw materials Economic fluctuations Intense competition globally in the automotive

industry

Globally, the automotive industry is facing intense competition. There is intense rivalry between Nissan, Toyota, Ford, Honda and other brands. Competitive pressure is the primary threat for Nissan. All these brands are engaged in an aggressive battle for market share. All the while the focus is on technological excellence and superior convenience. The rising prices of raw materials and economic fluctuations in the global environment are also important threats. Poor Macroeconomic conditions in Brazil and Russia affected the sales of the alliance in these markets negatively.

Recommendations: Nissan has been doing well. Its sales in Asian and

US markets have grown. It could benefit by forming new alliances. Nissan can also think of acquisitions. This can help it improve its presence globally. Rising prices of raw materials and labor costs can also be managed better through these alliances. Simultaneously, it would need to focus upon its home market.

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