Case Study: Nissan Motor

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Nissan Motor, one of Japan's leading automakers, which wants to get big by doing small. Through its small and big-car initiative, the company produces low-cost and fuel-efficient small cars with standard comfort, safety, style, and smooth performance. Nissan's models include Maxima and entra cars, and Altimas and Infiniti upscale sedans, as well as high pickups, SUVs, and sports cars. Its also one of the world's largest manufacturers of forklifts. Renault has a 43% stake in Nissan Motor and Nissan holds a 15% stake in Renault, constituting the Renault-Nissan Alliance. In 2016 the company agreed to buy 34% of Mitsubishi Motors for $2.2 billion.
Nissan is the second largest automaker in Japan after Toyota. Last year, it had sold more than 5.4
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Its sales in Asian and US markets have grown. However, It could benefit by forming new alliances. Rising prices of raw materials and labor costs can be managed better with partnerships and alliances. Simultaneously, it would need to focus upon its performance in home market. The Indian and Chinese markets are full of potential. Low cost cars can help it gain a larger market share there.
Nissan’s Vision
Nissan’s vision is to enhance the quality and safety for travel and gain customer satisfaction. Nissan focuses on maintaince and implement better quality standards to ensure people with more comfortability and safe drive.
There vision is expressed in their statement as: “Nissan-Enriching people’s Lives.”
The significance of this is that Nissan aims to participate in the development and progress of society through its business activities globally. This is only achieved through set of objectives that needs to be focused and better implemented through effectiveness and efficiency.
Nissan’s Mission
“Nissan provides unique and innovative automotive products and services that deliver superior measurable values to all stakeholders”
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The company was founded by Yoshisuke Aikawa in 1934. Nissan did a lot of hard work to established itself as a global automotive leader and formed a Renault-Nissan alliance in 1999. In 2015 alone, Nissan sold just 5.4 million units worldwide, while the whole alliance sold 8.4 million units combined. This allowed the alliance to capture 10% worldwide market share and become the 4th largest vehicle manufacturer as a group, globally.
Nissan sells its cars under 3 different brands: 1 Nissan, 2 Datsun, 3 Infiniti. The company’s main markets are the U.S., China, Russia and Japan.
Strengths
1. Successful Renault-Nissan alliance
In 1999, Renault and Nissan have formed an alliance. Renault holds a 43.4% stake in Nissan and Nissan holds a 15% stake in Renault. The alliance is managed by a joint owned Renault-Nissan BV company, which makes sure that companies pursue the strategies that benefit both Renault and Nissan. The alliance allows both companies to:
• Engage in costly R&D activities;
• Make investments in the new global projects;
• Negotiate better contracts;
• Enter new markets to give a tough fight;
• Share the design, manufacturing and procurement costs for better results

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