Strategic Analysis of Nissan's 'Move 2022' Strategy and Future Outlook

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STRATEGY, INNOVATION AND
ENTERPRISE
NISSAN

CONTENTS
DEVELOPING STRATEGIES IN NISSAN.................................................................................................3
EFFECTIVENESS OF THE STRATEGY PURSUED.................................................................................6
RANGE OF ALTERNATIVE STRATEGIES..............................................................................................7
REFERENCES..............................................................................................................................................8
Figure 1: NIM.............................................................................................................................................3
Figure 2: Nissan MOVE 2022.....................................................................................................................4
Figure 3: Nissan car market share in the UK from January 2016 to January 2019....................................5
Figure 4: Nissan Motors Corporation, 2019...............................................................................................6

DEVELOPING STRATEGIES IN NISSAN
Elaborating a business entity is the current necessity and for companies like Nissan, the role of
developing some strategies is crucial as there is a need to amend the required modifications according to
the situations. Generally, Nissan’s management uses the external market forces that foster or hinders its
business which is illustrated here through Pestle analysis and Porter's Five Forces.
PESTLE ANALYSIS
Political – Nissan actually does not have a direct impact of the political factors as they strictly follow all
the laws and legislation and hence this helps in maintaining the balance in the strategic directions of the
firm (Nissan Motors Corporation, 2019).
Economical – since Nissan goes with the clear vision for future with their alliance partners Renault and
Mitsubishi, they aim at enhancing their economic power and value by enriching lives of people and build
trust with all the stakeholders and the world at large.
Social – from starting Nissan gives value to their customers and all the stakeholders in the society that
enhances their social value in the markets and with the current strategy to ‘MOVE 2022’, the same has
also been focused.
Technological – according to automotive world report (2018), the alliance of Nissan Mitsubishi Renault
has the potential to transform the world with their innovative technologies and now they are focusing on
their Nissan Intelligent Mobility which involves all the current necessities of electrifying, autonomous
driving and connectivity.
Figure 1: NIM

Source: [Nissan Motors Corporation, 2019]
Environmental – there are almost no obligations on the company regarding environmental concerns but
being a producer of automobiles, the carbon footprints and environmental sustainability comes into the
picture and hence they are also shifted towards electrifications in their vehicles and operations with
renewable energy sources.
Figure 2: Nissan MOVE 2022
Source: [Nissan Motors Corporation, 2019]
Legal – some non-standard legal aspects and concerns affect the overall automobile industry hence
Nissan, so now they are well focused on developing some effective legal standards for their operations by
developing some necessary strategies.
PORTER FIVE FORCES
Buyers – it is not easy to drive the customers towards the products and hence Nissan has faced several
consequences previously and hence they keep their customers at the centre of their operations and their
strategies
Suppliers – the automobile industries require the support of several suppliers for their different parts,
supply chain, etc. and hence the role and threat of suppliers is moderately high which is managed by the
top management of the Nissan which makes them positive towards the business

New entrants – being one of the leaders in the market worldwide, Nissan has negligible concerns from the
new entrants but the ones who come with an innovative strategy might decrease the sales as the company
has a comparatively high price range for their products
Competitors – Nissan is experiencing a great threat of competition from the companies like Toyota, Ford,
Maruti Suzuki etc. with great dominance of these companies in the markets and hence this is a high threat
for the firm for which company has plans to deploy in their strategy of Move 2022.
Figure 3: Nissan car market share in the UK from January 2016 to January 2019
Source: [Statista, 2019]
Market rivalry – as mentioned, Nissan has a lot of competitors and hence the rivalry among them is also
high which most of the times hinders the success rate of the company (Mittal, 2017)

Figure 4: Nissan Motors Corporation, 2019
EFFECTIVENESS OF THE STRATEGY PURSUED
The strategy to MOVE 2022 by Nissan and its alliance partners seem one of the essential common
strategies to innovate, create sustainability and automation which has become a necessity. The automobile
industry is facing several challenges nowadays because of the high rate of carbon emission, internal costs,
and of course management. But in case of Nissan, they have a long experience of getting into such affairs
but still make better results and hence the strategy of Nissan will definitely help them out from several
challenges and at the same time help in enhancing their growth rate.
The pursued strategy by Renault Nissan Mitsubishi Alliance (RNMA) is comprised of 10 multinational
brands and has made record sales of 10.61 million cars and LCV’s in 2017 and as a result of their
strategic alliance with a keen mission and vision for future is going successful till now for them.
According to statistics, the alliance has helped in raising sales from straight years aided by the
consolidation of AvtoVAZ, and Nissan’s acquisition of 34% stake in Mitsubishi. In conclusion it can be
stated that the current strategy of Nissan is going successful so far and has created several opportunities
for the firm for future sustainability, In addition to this, there is still some space for some effective
implementation of innovative and efficient techniques to manage the quality, operations, customer
satisfaction etc. and hence they should continue their research.

RANGE OF ALTERNATIVE STRATEGIES
Creating new strategies actually requires a deep analysis of markets and current situation that can help in
designing the desired options and for the same, there are several tools and techniques that might be
helpful for Nissan as an alternate or additional competitive strategy in their business. Since Nissan is
experiencing several challenges in its history, there is a strategy termed as Blue Ocean Strategy, that
defines the unexplored markets or space, untainted by competition and here new demands can be created
rather than fought over. These dimensions may have ample opportunity for growth which can be both
profitable and sustainable. This strategy is also helpful for Nissan as they can create their own space, own
laws and own customers with their innovative ideas for the future. This can be a simultaneous pursuit of
differentiation and low cost that can open and create new demands (Blue Ocean, 2019). Nissan can create
and capture uncontested market space, as a matter of fact, it is based on the view that boundaries are not
given and no restrictions which will be helpful for companies like Nissan.

REFERENCES
Jindal, D., Jee, C. and Thakur, R.R., 2011. Nissan: go-global strategy. Business Strategy Series, 12(4),
pp.195-201.
Mittal, M., 2017. Competitive Analysis of Nissan Motors Pvt Ltd. Beyond Porter’s 5 Force Model, online
available at https://www.iracst.org/ijcbm/papers/vol6no32017/1vol6no3.pdf last accessed on 20th
February 2019.
Nissan Motors Corporation, 2019. ANNUAL REPORT (2018), online available at https://www.nissan-
global.com/EN/DOCUMENT/PDF/AR/2018/AR18_E_All.pdf last accessed on 20 February 2019.
Statista, 2019. Nissan car market share in the United Kingdom (UK) from January 2016 to January 2019,
online available at https://www.statista.com/statistics/300454/nissan-car-market-share-in-the-united-
kingdom/ last accessed on 20th February 2019.
Strategy update: Renault Nissan Mitsubishi Alliance (2018 edition) – a new Automotive World report,
online available at https://www.automotiveworld.com/news-releases/strategy-update-renault-nissan-
mitsubishi-alliance-2018-edition-a-new-automotive-world-report/ last accessed on 20th February 2019.
Blue Ocean, 2019. WHAT IS BLUE OCEAN STRATEGY?, online available at
https://www.blueoceanstrategy.com/what-is-blue-ocean-strategy/ last accessed on 21st February 2019.