Task 3
Introduction
Nissan Motor co., Ltd was established in Japan in 1933. Nowadays they produce cars in 20 different countries in the world (Nissan-global, 2015). In 1999 Renault and Nissan started an alliance. Nowadays they sell more than 8.000.000 cars worldwide each year (Nissan-global, 2015).
Strategic resources
Strategic resources are resources that enables a firm to implement a value creating strategy (Barney, 1991). There are two important strategic resources that allow Nissan to compete successfully in the automobile industry.
The first important strategic resources are the strategic alliances with other brands. Nissan developed several strategic alliances with other car manufactures. The first one was formed with Renault in
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Top 3 car manufacturers are going to introduce several new models with the emphasis on price instead of differentiation (Jurevicius, 2013). The price fighters are going to lead the market and the demand for ‘reasonable’ priced Nissans will decrease even further. To sustain the sustainable competitive advantage, Nissan should intensify strategic alliances and focus on differentiation. Strategic alliances can give Nissan a technological advantage despite a lower R&D budget. By using this technology efficiently in new car models, Nissan can differentiate from the top 3 manufacturers. With this dynamic capability, Nissan can create value for customers, despite the lower sale price of other …show more content…
Because when Nissan sales increase, the demand for comparable models will decrease. Although with the enormous technological advance of Nissan, competitors are always too late to react on new developments. It will take years before Honda and Toyota have developed the same amount of strategic alliances as Nissan.
Future competition
Currently Honda and Toyota are the main competitors of Nissan. Although there might be some blind spots in the competitor analysis. Blind spots are flaws in the competitive analyses and can cause a wrong competitive approach (Zahra & Chaples, 1993).
In the EV market Nissan currently has a good position. Models like the Nissan Leaf have a reasonable market share, but the main focus is not just on producing EV’s. The majority of the models is still driving on fossil fuels (Nissan-global, 2015). Other companies like Tesla primarily focus on producing EV’s, which might give them a substantial technological advantage (Tesla, 2015). With to global trend towards green energy, EV’s are probably going to win track in the future. If an innovative company like Tesla decides to focus on the reasonable priced family car market, Nissan will lose track
3. Threat of new entrants High barriers to entry in the industry. Licensing requirements are high. There is a minimum size requirement to achieve profitability and the initial investment is required and fixed costs of operating. How much of the control is in the hands of existing players of the market or key resources?
Companies like Nissan and Tesla offer great electric models with an outstanding amount of benefits for people who decide to invest. You’ll be saving not only yourself, but also your family a huge amount of money. The downside to Electric cars is the fact that these cars are limited by distance and speed. Most of these can only travel up to about 50 to 100 miles without being charged. You just can’t use them for long distant travel as of now, although it is expected to improve in future.
The firm is a multinational enterprise, with offices in 10 different countries and car stores in some 25 countries. Its main product line is the Tesla electric cars, currently consisting of three models: the Tesla Model S, Model X and Model 3. The Model 3 was launched in 2017 and is aimed at the lower spectrum of the EV market, whereas the model S and X are high-end cars serving the ‘premium’ segment. In this essay, I will examine Tesla’s
“Why Electric Cars are the Future” Introduction Attention Getter: It was Sunday at park, two college students were discussing about cars. One of them said that imagine about two decades ago, it appeared there was no effective alternative to the gasoline and oil, but now there is a better, cleaner, and more effective substitute to them: electricity. Although electric engines are not so widespread, more and more people consider changing their gasoline-fueled vehicles to electric cars. Then I discovered why electric cars are the future.
The consumers in this segment prefer low priced cars with basic features that serve as good value of
The vision of Tesla is ‘to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles’. Based on the mission and vision, the company’s strategy was determined. Tesla’s strategy is to enter at the high end of the market, where customers are prepared to pay a premium, and then drive down market as fast as possible to higher unit volume and lower prices with each successive model. (Musk,
Question 2: To do a resource-based analysis of any organization, it needs to go through different steps, first identify the three categories of the resources , the tangible ,intangible, and the human resources , second identify the capacity of the organization to put its resources for a desired end and in good use, third to decide on suitable strategy for the organization we need to do SWOT analysis to determine the organization strength and weakness compared to the competitors, third what are the key successful factors of the organization that can be determine by identifying the customers of the organization and their needs, and what the organization will do to survive the competition ( Hall&Keynes,2015) also audit analysis to Ford resources , and value chain analysis to Ford activities . In the next section, there will a brief explanation about the steps mentioned above , followed by an application to each step to, Ford motor which was incorporated in Delawae in 1919, it is a global automotive industry leader in Dearborn and Michigan, distributed vehicles across six continents the core business of Ford , designing and manufacturing cars, marketing , financing and servicing a full line of Fords cars, trucks, SUVs, and electrified cars, and Lincoln luxury car (Ford annual report,2015). Resource-based view (RBV) is an essential theory for strategic managers , considering the organization resources the assets , capabilities organization
Bark & Co. is a company founded by Matt Meeker, Henrik Werdelin and Carly Strife. The company owns several products – the initial and probably best known is ‘BarkBox’. Due to BarkBox’s success, the company Bark & Co. was created, which dedicates to build products that promote health and happiness of dogs everywhere (BarkShop, 2014). It was launched in December 2011 and had reached $25M in revenue by June 2013 with 100,000 subscribers (Fueled, 2013). Like illustrated in Figure 2, Bark & Co. has different businesses: ‘BarkPost’ is a dog content website that has the capability of receiving over 400,000 visitors monthly, ‘BarkCare’ is a dog health mobile application that can be reached 24 hours 7 days a week for vet consultation service (D’Onfro,
Electric vehicles face two main technological challenges, high costs and suboptimal batteries, this is where Tesla has taken the lead on its competitors, their batteries are cheaper, charge faster and have a better range than those of the competition (200+ miles, up to a maximum of 300 miles), the infrastructure for charging these vehicles is also rapidly developing. (technologyreview.com, How Tesla Is Driving Electric Car Innovation) The major innovation that is coming is fully autonomous vehicles, Tesla, Inc. has stated that all their vehicles are fully equipped with the software required and that total autonomy will start to
• Care must be given to the fact the Renault, the mother company is a prestigious symbol of French automotive prowess. The push to new frontiers should not come at the cost of Renault losing ground in its own playfield, France. The automotive industry in most of the advanced economies are struggling with shortage of skilled workforce and Renault is no different from this. Dacia, with its strong presence in several developing economies can help Renault by supplying additional workforce from its labour pool in developing economies. • The threat from the competitors is persistent and unavoidable.
Existing brands of electric cars include Chevrolet Volt, Model S Tesla, Nissan Leaf and Ford Focus. These vehicles have revolutionized the motor vehicle sphere because they are environmental friendly. It is important to note that vehicles release toxic carbon emissions into the atmospheric environment which in turn lead to pollution. Thus, to help curb this menace, electric vehicles should be part of our future.
Competitors – The industry that Nissan currently operates in provides lots of potential competitors for them as many automobile companies are developing electric cars which are something Nissan are very keen on focusing on. Nissan currently only run a small market share of the industry so many competitors are dominating the market such as Ford, Vauxhall etc. Nissans competitors have many strengths and weaknesses against Nissan. Some companies such as Ford focus heavily on fuel powered cars which means they will have an advantage against Nissans fuel powered range but Nissan will have an advantage over them with Nissans electric cars and the amount of research that has been put into it. Other companies such as Tesla whose main focus is electric cars are a fairly big competitor towards Nissan and the Nissan leaf range.
INTRODUCTION In June 2008, TATA Motors announced the acquisition of brands Jaguar and Land Rover from the car producing giant Ford Motors. The deal was valued at US$ 2.3 billion and is considered an overall success even from intercultural perspective. On the contrary, the deal was speculated to be a huge failure as the world was entering into recession in 2008 and Jaguar Land Rover (JLR) was incurring huge losses. The deal was an all cash deal with 100% acquisition of Jaguar Land Rover’s businesses.
Analysis: Tesla has proven to make an extensive impact in the market. Keeping the company’s position in the high-end industry, Tesla is able to represent just like companies like Apple a high-end product that appeals only to a certain customer base. Tesla is constantly innovating their product in a way that the newest technologies will be incorporated in the production process of the car and the products the companies develop itself too. Tesla is the first major company to have inherited an electric car only automobile production company, which is nearly impossible considering the weak demand for electric cars today. Most car manufacturers today only devote a small part of their product line to electric cars, meaning that they do not want to take the risks of completely changing to electric only cars as fears of reducing the demand for their products is real and because there is still more demand for conventional petrol driven cars.
In regards to the former, Toyota has been successful in implementing cost reduction policies such as the Just-in-Time (JIT) model that have not only minimized production costs, but also selling prices across all Toyota models (Thompson, 1). In regards to the latter, Toyota has constantly employed a model of innovation as the key to differentiation, which is the reason why Toyota is able to manufacture all types of vehicles to uniquely suite not only the geographically landscape of their target regions, but also the pockets of the consumers (Thompson,