Nissan SWOT Analysis 2021

Nissan SWOT Analysis 2021

Nissan SWOT Analysis: Nissan Motor Company Ltd is commonly referred to as Nissan is among the most renowned Japanese manufacturers in the automotive sector. 

The company was established on December 26, 1933, by the firm, it set up its headquarters at Nishi-Ku Yokohama, Japan, and has been in the auto industry since. 

Nissan mostly focuses on manufacturing and selling cars and parts, as well as providing financial services for sales. Nissan is split into two divisions: Sales finance and automotive. 

The automotive segment of the business produces as well as sells electric minivans, cars, microbuses, light cars and compact vehicles trucks, commercial vehicles as well as their spare parts. 

In contrast, the sales finance segment of the business handles businesses in relation to leasing and sales finance properties to help promote the automotive segment of the business (Reuters 2021, 2021).

nissan swot analysis

Company Background

Key Facts
Name Nissan Motor Company Ltd
Founded December 26, 1933
Logo Nissan SWOT analysis logo
Industries served Automotive (Cars, Commercial Vehicles)
Geographic areas served Worldwide (more than 100 countries)
Headquarters Nishi-ku, Yokohama, Japan
Current CEO Carlos Ghosn
Revenue (Japanese Yen) JPY ¥12,189,519 million (2015) 7.2% increase over JPY ¥11,375,207 million (2014)
Profit (Japanese Yen) JPY ¥523,841 million (2015) 14.5% increase over JPY ¥457,574 million (2014)
Employees 154,700 (2016)
Parent Nissan Group
Main Competitors Bayerische Motoren Werke AG, Chrysler Group LLC, Daimler AG, Ford Motor Company, General Motors Company, Honda Motor Company, Hyundai Motor Company, Tata Motors, Ltd., Toyota Motor Corporation, Volkswagen AG and many other automotive companies.

SWOT Analysis of Nissan Company

Nissan Motors’ SWOT analysis explores the strengths of the brand as well as its weaknesses, opportunities, and threats. 

The internal aspects of this SWOT Analysis of Nissan Company are strengths and weaknesses, whereas the external factors focus on potential threats and opportunities.

Strengths In The SWOT Analysis of Nissan  

nissan swot analysis

  • Capacity Controlling Cost – It is the Nissan motors contract out some of their work, and since they can achieve economies of scale within the manufacturing unit so the cost is less.
  • Eco-technology The company is producing eco-friendly cars that provide them with advantages over other companies who don’t manufacture these kinds of vehicles. They have introduced a concept known as “zero-emission” in 2010, and, by the year 2010, they were the biggest manufacturer of eco-friendly vehicles in mass production.
  • The brand image is referred to as Sports Car Manufacturer — Nissan is the country’s second-largest automaker. Its image is more akin to sports cars than other car manufacturers. Nissan has two succeed in their sports car line. These include those of the Z GT-R and Z GT-R.
  • A large number of employees hired globally, Nissan Motors recruited over 1.5 million employees.
  • The growth rate in the year 2015, sales growth across both the US and Europe exceeded the rate of growth for all volumes of the industry.
  • Costs of labor are reduced Reduced labor costs include factories that are set up in various locations, in accordance with the costs-minimization guidelines.
  • Skilled workforce Nissan is home to a highly-skilled workforce. It employs 142,925 skilled workers around the world. It also has training facilities that educate its employees.
  • Decreasing Fuel Price the price of fuel and sales are in a negative relationship. This means that if the price of fuel increases, the sales of the automobile will fall and vice versa. If the price decreases, then sales will rise. At present, the cost of oil is decreasing which could boost sales.
  • Capabilities for Production Production Capabilities Nissan Motors can produce more than 4 million cars in years. It has manufacturing facilities across India, Brazil, Japan, Thailand, the USA, Spain, and Malaysia.
  • Promoting the Green Environment – It’s a pioneer in the area of electric vehicles that is green.

Weaknesses in the SWOT Analysis of Nissan 

nissan swot analysis

  • The danger to the brand’s value: Nissan slipped 10 places in the Brand Finance report. The decline in brand value was attributed to $300 million. This is a major issue for the brand.
  • Recalls One of the most destructive things for manufacturers is recalls for products. Nissan has had to deal with such problems over the years. Nissan had recalls of 639480 vehicles in USand 12,99,000 automobiles in Canada and other countries due to defective hood latches, as well as wiring, harnesses that could short circuits. They have recalled 768000 cars since moisture can seep into the floor on the driver’s side and cause electrical shorts which could result in an explosion. The negative publicity from these recalls affects the reputation of the business and lowers customer confidence in the company’s brand.

Opportunities In The SWOT Analysis of Nissan  

nissan swot analysis

  • Automotive industry growth: The automotive industry is expected to expand at an annual rate of 6% from 2015 to 2019 and will reach $1.5771 trillion by the year 2019.
  • Gain In Market Share Nissan is currently holding a 6.5 percent market share. With the industry expanding, they stand a great chance to increase their revenue. They are also testing new business opportunities together with Renault which has provided them with an advantage in this endeavor.
  • Alternate fuels: The demand for hybrid electric vehicles is steadily on the increase due to environmental issues that are associated with traditional fuels as well as the prices of crude. The major markets for HEVs are the US, Western Europe, and Japan, and China.
  • Electronic Vehicles Electric vehicles are in high demand. will be around. 7.5 million units before 2020’s end. The demand is increasing at a rate of 29.4 percent for the time period between 2015 and 2020. Nissan together with Renault plans to place 1.5 million vehicles powered by electricity on the roads around the world in 2016.
  • emerging markets: There is a goal of an 8 percent market share. To reach this, they have to concentrate on emerging markets. China along with India are ideal choices to achieve this.

Threats In The SWOT Analysis of Nissan  

nissan swot analysis

  • Change Rate In the sense that Nissan is a multi-national business and has a significant chance of being exposed to fluctuations in changes in the rate of exchange.
  • Government Regulations – Nissan is a multinational corporation. It is required to comply with the laws of different countries across the world. What one country considers to be good may be considered unacceptable by another country. A change in norm could cause restrictions in the running of Nissan’s business.
  • Decreasing Cost of Fuel Decreasing the price of fuel could hurt the sale of eco-friendly cars.
  • Substitutes for Private Cars The substitutes for private cars, like metro trains and buses are growing. 20percent decrease in sales is due to the increasing competition in the segment of passenger cars.

SWOT Analysis Limitations for Nissan

While it is true that the SWOT analysis is extensively used as a tool for strategic planning, However, the analysis has some limitations.

  • Certain abilities or aspects of an organization could be both strengths and weak points at the same. This is among the main drawbacks that SWOT analysis has. For instance, changing environmental regulations can be an opportunity and a threat to the company. However, however it could also be an opportunity in the sense that it allows companies to compete on the same level or even gain an advantage over competitors if they are could develop their product quicker than competitors.
  • SWOT doesn’t provide a way to get a competitive edge and therefore it shouldn’t be a complete solution.
  • The matrix is merely an initial point of reference for discussions on how suggested strategies can be implemented. It also provided an evaluation window, but it did not provide a plan of implementation that is based on strategic competitiveness. Nissan
  • The SWOT model is a static analysis and analysis of the current conditions with only a few potential modifications. As the environment, circumstances threats, strategies, and circumstances alter, the dynamic of a competitive setting cannot be analyzed in one matrix.
  • SWOT analysis could cause a company to focus too much on one external or internal aspect when formulating strategies. There are interrelations among the most important external and internal aspects that SWOT doesn’t reveal, which could be crucial in determining strategies.

A SWOT Analysis that is Weighted Nissan

Due to the previously identified weaknesses of the SWOT analysis/ matrix, the corporate management has decided to assign the weightage of every internal strength and weakness of the business. 

They also consider the likeliness of events that will occur in the near future, and what the effect can be on the performance of the company.

This is referred to as the Weighted SWOT Analysis. It is superior to simple SWOT analysis since using a weighted SWOT analysis Nissan managers can concentrate on the most crucial elements and eliminate the less critical ones. 

It also eliminates the problem of a long list that causes organizations to make a lengthy list but not address any of the elements that are considered to be important.

Conclusion

In the end, Nissan Motor Company Ltd is a firm that has managed to remain at the forefront of the automotive industry in the midst of competitors like Ford, Hyundai, Volkswagen, Toyota, Honda, and so on. 

Nissan has managed to do this by building on its strengths, conserving the environment for a long time, and investing in electric vehicles that are already viewed as a viable market. 

However, recent recalls of products and factory shutdowns have damaged its image, but this could be mitigated by leveraging emerging opportunities, such as operating in the emerging markets. 

This can boost the image of the company and help to establish a solid image while also reducing the risks presented to Nissan.

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