Being a secondary research based paper, the authenticity is subject to the source from which it has been obtained. This paper helps to understand the real time strategy implemented by Nissan to make global mark. This paper deals specifically with emerging markets reiterating the importance of the same. It can act as guideline to understand the factors to be considered while deciding to go global. In addition to that, it recommends the likely future strategy that Nissan can implement in sync with its existing strategy.
This article would act as a guide to understand the key factor influencing the strategies and understand various dos and don'ts of going global. Jindal, D. Emerald Group Publishing Limited. Report bugs here. Please share your general feedback. You can join in the discussion by joining the community or logging in here. You can also find out more about Emerald Engage. Visit emeraldpublishing. Answers to the most commonly asked questions here.
To read the full version of this content please select one of the options below:. A short summary of this paper. Background of Nissan Motor Corporation Paradox of Competition vs.
Paradox of Profitability vs. Paradox of Globalisation vs. Introduction This report is a critical analysis on the corporate strategy of Nissan Motor Corporation Ltd. Localization The elaborative analysis of each tension and the strategic ways of resolving the paradoxes will be discussed along with recommendations for future focus and investment decisions. With its Headquarters in Japan, and many other production facilities sprawled across the world, the automotive giant employs over , people worldwide.
The company and associated brands design, produce and sell over 2. In , Nissan Motor Corporation entered into an alliance with French automaker, Renault, creating a unique business model that has brought about positive results for both partners over the years. Apart from its primary brand, Nissan, the company also manufactures vehicles in the lu u seg e t, u de the a e I fi iti. With ad a ed desig s a d po e ful pe fo a e, Infiniti enjoys a considerable market share in countries such as U.
The survival of a network raises a paradox — is it favourable to involve in collaborations and work towards the same goal or keep their distance and interact in a transactional way? This chapter elaborates how Nissan has engaged in network level strategy and manages to shape these strategies with respect to competition and cooperation. Some of the major competition for Nissan comes from within Japan from automakers such as To ota o e ti e o ld s la gest auto oti e manufacturer , Mitsubishi, Honda, Suzuki and Subaru.
The Renault-Nissan alliance obtained a controlling stake of This alliance will bring out increased synergies such as production facility utilisation and combined purchasing from suppliers as well as joint development of automated driving technologies and plug-in hybrid vehicles. Renault- Nissan Alliance In Nissan entered into an alliance with Renault, to avoid bankruptcy resulting in a cross shareholding in which Renault owns The Renault-Nissan alliance reveals their cost savings arise from collaborating on producing new technologies such as autonomous driving systems White, Further the alliance incorporated standardizing the processes between two companies even though their individual identities remain intact Jindal, et al.
Renault-Nissan took a 3. This alliance was focused on engineering electric versions of two vehicles, Smart Fortwo and Renault Twingo.
The collaboration also saw highly fuel efficient engines being shared amongst the brands for their light commercial vehicles. Joint Venture with Dongfeng Motor Corporation. In , Nissan entered the Chinese luxury automobile market through a joint-venture with Dongfeng Motor Corporation. Joint Venture with Ashok Leyland Nissan also established three joint ventures with Ashok Leyland India in for vehicle manufacturing, powertrain manufacturing and technology development Nissan Motor Corporation, The alliance continues to be the zero-emission car segment leader, with accumulative sales exceeding , vehicles.
To better establish their competitive position in the market, Nissan has acquired controlling stakes in two companies with major growth potential and fashionably attempted to convert this competition to collaboration.
According to Hecht, , collaboration is the new competition, a concept which Nissan has incorporated very well with respect to alliances, joint ventures and license sharing. Nissan s life-sa i g alliance with Renault is seen as their best strategic move so far Nissan Motor Corporation, In order to further spread itself in emerging markets and gain technological advancements, Nissan has collaborated with automakers who are well established in their respective markets.
With strategies that are finely balanced between collaboration and competition, Nissan has been sustaining unique brand images within the alliances and joint ventures, especially in markets with heavy competition Nissan Motor Corporation, The above can be understood by Nissa s corporate values, vision, mission and objectives which will be elaborated in this chapter Refer Appendix E for Mission and Vision statements of Nissan.
In Nissan achieved a record 5. Considering the net revenue increase of 3. Net income has increased by Refer Appendix F for consolidated financial data and analysis With respect to profitability and the return generated for investors, Nissan earned a Return on Equity of With an Operating Margin of 6.
Nissan had to refrain from paying dividends in due to negative cash flows and decline in profitability. However, Research and Development activities have been carried out aimed at long term growth Nissan Motor Corporation, Starting from , Nissan has been following an incremental dividend payment scheme Nissan Motor Corporation, Nissan derives its corporate social responsibility vision from its corporate vision: E i hi g People s Li es , ith eight sustai a ilit st ategies k o as Blue Citizenship Refer Appendix G.
Nissa s app oa h to li it the e i o e tal i pa t i ludes Zero-Emission Vehicle penetration, corporate carbon footprint minimization and new natural resource use minimization. Being the zero emission leader in the market, Nissan launched a six year green program in to limit the environmental impact and resource consumption.
Nissa s ethodolog fo real-world safety comes in three sub categories; vehicles: developing safety technologies, i di iduals: Nissa s traffic safety activities and society: working together with society. Nissan serves the community as a responsible member in the aspects of environment, education and humanitarian support. Nissa s app oa h to e ha i g ualit i ludes p odu t, sales a d se i e uality. Nissan has dedicated CSR guidelines in practice for both dealers and suppliers which extend globally.
Nissan also encourages diversity, career development and learning opportunities for their employees whilst building safe workplaces and opening up dialogue with employees.
To be a sustainable company, Nissan displays a high level of ethics and transparency with their corporate governance system, compliance and risk management strategies. Nissan Motor Corporation, Paying an attractive incremental dividend creating value to the shareholders, Nissan has secured its position amongst investors Nissan Motor Corporation, With respect to sustainability strategies, Nissan has achieved excellent results Refer Appendix G for figures.
In managing the paradox of profitability vs. Nissan has achieved this perfect balance between profitability and responsibility through their innovative, eco-friendly vehicles, a segment in which they are leading.
Context can be observed with the perceptions of industry, organizational and international environments. This chapter explains how Nissan carries out business globally whilst managing cross-border synergies and being receptive to local circumstances. The company offer three major brands Nissan, Infiniti and Datsun. Refer Appendix C. Dimensions of Globalization — Worldwide Similarity Nissan follows a 4G strategy to ensure global homogeneousness of processes and practices.
Nissan also introduced integrated Factory Automation iFA which integrates manufacturing, IT and Shop-Floor Management processes resulting in smooth material flows and low-cost automation. These are, however, integrated where feasible to reduce costs across borders Jindal, et al. Nissan follows an aggressive strategy in these local markets with the help of partnerships.
In China, Nissan launched a full product line, aided by Do gfe g s e pe tise o o e ial vehicles and network of dealers Jindal, et al. With 4 plants in China, Nissan plans to commence exporting Jindal, et al. Nissan Infiniti started production in China in , becoming the third footprint of the luxury car brand in addition to Japan and U. India is the ninth largest vehicle producer and the largest small car producer Jindal, et al.
SHIGA, Nissan-Renault s I dia pla t has a production capacity exceeding ,, addressing both local and export demand.
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