Strategic Analysis of Nissan: A Business Strategy Report

This report provides a comprehensive analysis of Nissan's business strategy. It begins with an introduction to business strategy and its importance for achieving competitive advantage. The report then delves into the macro-environmental factors affecting Nissan through PESTEL analysis, examining political, economic, social, technological, environmental, and legal factors. It also utilizes the Four Corner analysis to assess competitor intent and capabilities. The report further analyzes Nissan's internal capabilities using VRIO and McKinsey's 7S model, evaluating valuable, rare, inimitable, and organized resources, as well as strategy, structure, systems, style, staff, skills, and shared values. Additionally, Porter's Five Forces model is implemented to analyze competitive forces within the automotive industry. Finally, the Ansoff matrix and Porter's generic model are used to interpret Nissan's strategic planning and competitive positioning. The report concludes with a summary of findings and recommendations for Nissan's future strategy.

Business
Strategy

INTRODUCTION...............................................................................................................................3
TASK 1.................................................................................................................................................3
TASK 2.................................................................................................................................................6
TASK 3.................................................................................................................................................9
TASK 4...............................................................................................................................................10
CONCLUSION..................................................................................................................................13
REFERENCES..................................................................................................................................14

INTRODUCTION
Business strategy can be explained as combination of decision taken as well as actions
which an business firm perform for achieving goals and objectives for securing competitive
position within market area. In simple term it can be said that, business strategy is backbone
of company as it is roadmap which result in accomplishing desired goals (Canevari‐Luzardo,
Berkhout and Pelling, 2020). As any mistake within roadmap result in getting business lost
within crowd of overwhelming competitors. Thus, for an business firm it is important to
design their business strategy is better manner so that competitive advantages will be gained.
This report is based on given organisation i.e., Nissan which is part of automobile
manufacturing industry as it was founded in 1933. They are dealing at global level and
products offering by them are automobile, luxury vehicles, commercial vehicles, outboard
motors and forklift trucks.
This report will going to analyse impact of macro environmental factors on working
of Nissan through PESTEL and Four corner analysis. Along with this, it also analyse internal
capabilities of respective business firm by implementing VRIO and 7s McKinsey. Moreover,
for analysing competitive forces Nissan implement Porter’s five force model. In addition to
this, respective report will implement Ansoff matrix and Porter’s generic model for interpret
strategic planning of Nissan.
TASK 1
Macro environmental factor is related with the economic condition or of specific
region as well as sector. In addition to this, it includes tendencies in inflation, gross domestic
products, fiscal policies, spending and several other. Moreover, for Nissan it is crucial to
analyse macro factors within better manner because elements included within this have
positive as well as negative both impact on operations (Mussolino and et. al., 2019).
Explanation of these are as follows :-
PESTEL analysis – It is an framework which provide assistance to business firm in
determining environmental factors within effective manner. Here, PESTEL stands for
Political, Economic, Social, Technological, Environmental and Legal. Explanation of
respective framework in relation of PESTEL analysis are mention below :-
 Political – This involves several elements such as rules, regulation, policies, political
instability of nation and several other. For example, Brexit is political factor as it

result in adjusting within respective Company because Britain voted for moving out
EU within historic referendum in 2016. There are several terms related to the
economic as well as trade post Britain’s exit which are still not certain and result in
wide effect on Nissan (Rivera and Clement, 2019). In addition to this, overall 7000
staff of respective organisation are in their Sutherland plan if Nissan will not enjoy
same trading condition then they have to cut operations which directly impact on
losing job of several people at large level.
 Economic – In US, automotive sector is major contributor but at the time when
country deals with recession sale of Nissan reduce. Moreover, Brexit is one of the best
example because it have negative effect at wide level on the working of company
which result in reducing sales.
 Social – Now a days people are getting more aware about environment which means
that customers are preferring environmental friendly transportation through that
respective sector go with wide transformation (Lüdeke‐Freund, 2020). As people are
getting aware about negative impact of automotive industry and increasing cost of
fuel. So, for gaining competitive advantages in this Nissan started focusing on
developing electronic and hybrid vehicles which people want. for instance, Nissan
introduced Nissan Leaf in United State and Japan, along with this stand for benefits in
relation of growing electric vehicle adoption.
 Technological – In every country technology advancement is taking places which
help Nissan in bringing something innovative as well as attractive for customers in
proper way. As customer of Nissan is getting aware day by day which require
respective company to come with something eco-friendly. Thus, strategy of respective
business is influenced through government policies which is related to clear air as
well as problem of climatic changes. Moreover, it driven respective company to built-
in powerful battery, sleek aerodynamic along with latest technology that provide
assistance to Nissan in making customer satisfy. This strategy will result in reducing
carbon emission.
 Environmental – National bodies introduce various rules as well as regulation in
relation of environment that every business firm has to follow. Thus, Nissan has to
bring eco-friendly goods and services as strategy of respective is influenced through
policies of government which are building powerful battery, sleek aerodynamic
related to latest technology that result in making customer satisfy. It will give positive
impact on company by reducing carbo emission.

 Legal – For Nissan Company it is essential to implement strict norms within their
working in relation of emission regulation and passenger safety (Nason and et. al.,
2019). In addition to this, with customers Nissan have to focus on their staff as well as
also conduct their operations within legal manner.
Four Corner analysis – It is an model which designed by Michael Porter and behind
introducing this model motive is to aids strategy of business firm through assessing
competitor intent, strength and objective which are important. This four corner model
involves current strategy, motivation, capabilities as well as management assumptions.
Respective model is respective model in relation of Nissan are mention below :-
Motivation Current strategy capabilities Management
assumptions

Motivation of
Nissan is that they
want to offer eco-
friendly product that
will not have
negative effect on
environment. In
addition to this,
respective
organisation is also
focusing on cost
effective strategy
also through buying
raw material in
wholesale from
suppliers.
Strategy of Nissan is
influenced through
government regulation as
well as policies which are
in relation of clear air as
well as problem of climate
modification. Thus,
respective company built-
in powerful battery, sleek
aerodynamic with latest
technology that help in
gaining satisfaction of
customers (Parnell, Parnell
and Jones-Sepulveda,
2019). In addition to this,
such strategy will result in
reducing carbon emission.
Along with this, Nissan
will by raw material in
wholesale from suppliers
that will result in cost
effective product.
For Nissan there
strength of
Nissan is most
important
capabilities that
provide them
assistance in
gaining
innovative
strategy within
marketplace in
proper manner.
Along with this,
values of
business form
provide
assistance at
large level in
serving
customers
effectively.
In an organisation
it is responsibility
of administrative
department to
make sure that
they are providing
training as well as
development
session to their
staff. As it will
assist Nissan in
conducting their
work in proper
way and also assist
in gaining
competitive
advantages.
TASK 2
For each and every organisation it is important to analyse internal environment as
well as abilities analysis because through that they can understand market position as well as
competition in the effective manner. Moreover it also helps an organization in developing
proper strategies by which they will able to gain competitive advantages at the potential
marketplace. In order to conduct internal environment and capabilities analysis an
organization may adopt several models and theories (Hahn and et. al., 2020). In respect of
Nissan, in order to conduct internal environment as well as capabilities they also adopt
different models, from which main two are mentioned below:-

VRIO Analysis
Resources Valuable Rare Inimitable Organized
Products design
and features
Yes - - -
Supply chain Yes Yes - -
Employees Yes Yes Yes -
Financial
capabilities
Yes Yes Yes Yes
Valuable – It alludes to those assets which are significant for an organization as through that
they increase high upper hand at the commercial center. In regard of Nissan their important
assets are:
 Products design and feature – It is rare because respective company introduce
vehicles according to requirement of customers as well as they also take care of
surrounding and environment that provide assistance in grabbing benefits related to
competition.
 Supply chain – Nissan develop their supply chain according to the requirement as well
as location so that they can fulfill customers demand properly.
 Employees – Nissan employees are skilled, experienced and hardworking that provide
assistance in grabbing benefits related to competition.
 Financial capabilities – The financial status of respective company is good that
provide assistance in grabbing benefits related to competition at marketplace.
Rare – It is considered as those products which are rare for the company because through
that they sustain in market successfully (Sanders and Wood, 2019). Nissan few resources are
not rare i.e. products design and feature because competitor copies it but there various
resources are rare:
 Supply chain – It is rare for the respective company because they develop or design
supply chain according to location and requirement.
 Employees – Staffs of Nissan are highly skilled, experienced, hardworking and loyal
which make them at the marketplace.
 Financial capabilities – The financial status of Nissan is good and it is not adopted by
any other companies.

Inimitable – It is considered as those resources which cannot be copied by any competitor. In
respect of Nissan their some resources are imitable such as products feature and design as
well as supply chain because it can be copied by competitors in some time duration. On the
other hand their some resources are inimitable:
 Employees – Staffs of Nissan are highly skilled, experienced, hardworking and loyal
to their workplace which cannot be imitable by other. Moreover company also
provides training to them to make them more effective.
 Financial capabilities – The financial status of Nissan is strong which cannot be
copied by competitors companies.
Organized – It is determined as that factor which required very little organized. In respect of
Nissan there some resources need to be organized such as products design and feature, supply
chain and employees (Child and et. al., 2019). But their few resources are didn’t need to
organize such as:
 Financial capabilities – The financial status of Nissan is strong which cannot need to
be organized in short duration of time.
McKinsey’s 7 s model
According to respective model there are seven areas of organization which are further
divided into soft as well as hard areas. It is essential for a company management to
understand these areas and develop strategies accordingly as through that they can create
sustainability at the marketplace as well as it will also help in gaining high competitive
advantage at potential market. Below explanation of all 7 areas are given in respect of
Nissan:-
7’s Factors of McKinsey’s model
Hard S Soft S
Strategy Style
Structure Staffs
System Skills
Shares values
 Strategy – It is considered as plan which is developed by a company management for
the attainment of sustained competitive advantage as well as successfully competes in
the market (Akhmedova and et. al., 2019). In respect of Nissan they are planning to

launch vehicles which produce low emission that affect environment as well as they
also planning to support economy.
 Structure – It is determine as way related to business division and units. A company
conducts its business operations as well as functions according to its structure as that
help in sustainability. In respect of Nissan they are operating their business in the
divisional structure which helps them in attaining their desire goal successfully.
 System – It is considered as process or procedure which is implemented by a
company for conducting their daily business activities so that they can attain their
desire goal as well as objective successfully. In respect of Nissan they developed
proper strategies and system related to introducing vehicle which is eco friendly as
well as that generate how carbon emission.
 Style – It is considered as ways a company managed by the top level authorities
conduct interaction so that business operations conducted properly (Gallego‐Álvarez
and Pucheta‐Martínez, 2020). In respect of respective company their manager
involves employees in decision making process so that they can attain their desire
goal successfully.
 Staff – It is determined as element which concerned with type of employees which is
required by a company as well as how they will be recruited, trained, rewarded and
motivated. In respect of Nissan their staffs are trained, motivated and encouraged so
that they accomplish their task properly and attain desire goal of company
successfully.
 Skills – It is determined as abilities of employees so that they can attain their goal by
accomplishing their allotted tasks in effective manner. In respect of Nissan they
provide proper training to their staffs so that their skills get enhanced which help them
in attaining desire goal of launching effective vehicle.
 Shares valued – It is considered as norms as well as standards which provide guidance
to the employee’s behaviour and company practices. It is essential for every company
to follow guidelines developed by government. In respect of respective company they
follow proper guidelines so that they can be successful in launching vehicle which not
harm to environment.
All these 7 elements work together for Nisan which provide them assistance in
conducting their work within more effective manner as well as also result in

accomplishing goals and objectives. With the assistance of these staff also feel motivated
and do work in better manner which result in enhancing productivity of company.
TASK 3
Porter’s five force model is strategy that an business firm use for analysing
competitive forces which are available within market area. With the assistance of this
approach manager as well as leader of company will able to structure and select process,
approaches and plans within legitimate manner (Wielsma and Brunninge, 2019). In relation
of Nissan they adopting respective model for evaluating competitive forces at marketplace,
explanation of porter’s five force model are mention below:-
 Threats of new entrants – It is circumstances in that new business enter within
specific market area without facing any difficulties. It is in like manner possible when
that specific market is significantly beneficial and there is incredibly less limits
similarly as establishments. In regard of Nissan, their danger of new section is low on
the grounds that particular organization embrace new innovation and have high pieces
of the pie which isn't simple for other firm to pick up in less time.
 Threats of substitutes – It is identified as situation in that market have high
availability of substitute offerings. Thus, such practices will result in high switching
power of customers easily from one product to another for gaining high product on
low price. In relation of Nissan Company, threat of substitute product is high because
there are numerous companies within industry who are selling same products such as
BMW, Hyundai, Volkswagens, Suzuki and many more.
 Bargaining power of customers – It determine the control of consumers in relation
of prices as customers of Nissan have low buying power because of high cost
offerings. Apart from this, consumers are fragmented at global level as new cars sold
through dealers which result in low bargaining power of consumer with more distinct
products as well as Nissan in successful manner creating enough differentiation
within automobiles in relation of features as well as specifications. This will provide
assistance to respective company in maintaining profitability and brand image.
 Bargaining power of suppliers – Offering of automobiles is complex with detailed
specific as well as require wide components as well as accessory. For quality control
purpose Nissan need qualitative components from trusted suppliers and this will result
in enhancing bargaining power of suppliers (Cao and et. al., 2019). Thus, it is

important for respective company to maintain good relation with suppliers as well as
search for new suppliers for avoiding increment in cost and shortage of raw material.
 Competitive rivalry – Automobile manufacturers are facing high level of
competition and Nissan is also part of it. As they are facing rivalry from local as well
as international competitors such as General Motors, Daimler Chrysler, Toyota.
Honda and many more. Still at global level respective company is most profitable at
global level. Although, for reducing market competition Nissan is doing strategic
alliance that provide benefits for company as well as they are also trying hard for
enhancing market share through competing with Toyota. It is essential for Nissan to
manufacture alternative of Toyota offerings within less price in comparison of Toyota
for gaining market position.
These five forces have wide impact on working of Nissan as it is important for them to
analyse these factors in better manner and then conduct their operations so that better
outcomes will be gained. Along with this, negative impact gets minimise as well as
opportunities available in market will be gained in better manner.
TASK 4
Porter’s generic as well as Ansoff matrix both model Use by Nissan Company by
which they will be able to analyse and evaluate market within better manner for developing
strategies, plans and policies appropriately. Explanation of these model in relation of
respective company are mention below :-
Ansoff matrix – It is framework which an business form adopt or implement for
creating plans, policies and strategies that will aids in business expansion in more effective
manner. Within an organisation, Ansoff matrix use by senior manager and marketers of
company and several other people who generally design strategy in company so that staff can
conduct their operations in better manner. In relation of Nissan, manager utilise Ansoff
matrix within their working for analysing strategy in better manner. Explanation of these are
mention below :-
 Diversification – According to this factor of Ansoff matrix company introduce wide
range of products and services in market area. Diversification will help company in
enhancing their customer base as well as profitability in better manner. In addition to
this, diversification strategy may be risky for company because every people have

there different taste and preferences which may result in not liked offering of business
firm.
 Market development – It is an growth strategy in which business firm enter within
new market through utilisation of existing offerings. Here, market development is
simply expanding business in customer segments, region, new geographies and
several other. In simple term it can be said that, market development strategy need
conducting proper research in relation of market so that customers will be analysed in
better manner.
 Product development – It is an growth strategy in which business firm come with
something innovative in market area for satisfying need and want of customers in
better manner. While bringing new product it is important for company to conduct
research in better manner so that their sales and profitability will get enhance. In
relation of Nissan new product development strategy is influenced through
government which is related to clear air and problem in term of changing climate.
This strategy will provide driven to respective company in building powerful battery
as well as sleek aerodynamic with innovative technology that help in making
customer satisfy. This product will provide assistance in reducing carbon emission in
better manner.
 Market penetration – As per this strategy business firm use their product and services
within their existing market. Behind this aim of cooperation is the increase their
market share through market penetration strategy. Moreover, an organisation can use
market penetration strategy within several manner such as decreasing price, acquiring
competitors, increasing promotion and several other ways also.
After evaluating all these growth factors of Ansoff matrix, Nissan Company analyse the
product development is effective for them. Because product development provide assistance
in gaining competitive advantages and also provide assistance in conducting operations as per
policies of government in better way.
Porter’s generic competitive strategy – By Porter’s four generic business strategies
has been introduced which provide assistance to company in gaining competitive advantages.
In addition to this by utilisation of respective model an business firm will able to determine
their position which means there profitability is above or below in industry average. Thus,
profitability above average which result in long term sustainability of company and also
assist in gaining competitive advantages. There are mainly four factors within this model