Comprehensive Nissan Case Analysis: Globalization and Environmental Issues

Comprehensive Case Analysis
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I. Background
Starting off as Kwanshisha Automotive Company in the year 2011, Nissan was established to its present name in the year 1933 after the takeover of the parent company. Ever since then, the company has continued growing and expanding its operations globally through the opening of plants in different countries, most notably the U.K and the U.S. Presently, the company is one of the largest automakers in the world, competing with other brands such as Toyota, BMW, and Mitsubishi. The automobile industry has continuously been growing over the last century. Different cars have been produced so as to fit the various needs of the customers, be it for luxury, necessity, or business.
II. Issue
Effects of globalization on business.
With the continued technological advancements and prevailing dynamic era, there is a renewed, cut-throat competition from both current and new entrants. The different customer needs have ensured that cars are constantly being innovated and renovated to new designs that suit their needs. The global overcapacity was now real, and for survival in the current environment. Globalization has ensured that the company needs to stay on its toes, to ensure that it survives in the present competitive environment.III. Analysis
SWOT Analysis
The company obtains its strength from the strong strategic partnerships that it has formed with some other firms. The most significant one was its alliance with Renault, which developed the world's fourth largest automaker. The company also has a strong financial position hinging on a growing reputation and value for its cars globally. This makes it trustworthy, and even attracts more clients for its vehicles.
The company also has some weaknesses. First is the recall on its products. Between 2011 and 2012, the company recalled thousands of its products due to some mechanical and structural flaws. Just recently, the company has had to recall a total of 4 million cars due to faulty airbags and seat belts (Humphries, 2016).This places a lot of challenges when it comes to customer loyalty. Secondly, the company has found quite a lot of problems in trying to break into the luxury car segment. Since it has tried with the production of Infiniti, much perception of its vehicles is more like sports cars rather than luxury cars.
There are, however, opportunities for the company to exploit and grow further. First, there is increased preference for environmentally-friendly, cost-efficient machines. With the Nissan Leaf, the company seems to have grasped such an opportunity with both hands. Developing hybrid automobiles is high up the agenda of the company's manufacturing department. Secondly, the motor industry is showing an unrelenting growth capability, which hints at brighter days ahead for the company, if it takes its chances. Finally, the company can take advantage of the untapped markets, such as India and other developing countries to increase its presence and establish a brand over these regions.
Threats abound for the company’s business. Considering that it is a global brand, it is bound to be affected by different legislations in various countries around the world. There...