STRATEGIC ASSESSMENT

Strategic Assessment

Strategic Assessment

Courtesy: Nissan Motors

Introduction

Nissan Motors is among the leading car manufacturers of Japan. It is the world's 6th largest car manufacturer after Toyota, General Motors, Volkswagen AG, Hyundai Motor Group, and Ford (Nissan Motor Company Global Website, 2012). The company is headquartered in Nishi-ku, Yokohama. Nissan produces a wide range of automobiles which it sells to market all over the world. Over the years, the company has redefined its strategic plans to integrate newer technologies into its cars (Nissan Motor Company Global Website, 2012). I believe that the company can widen its competitive moat by introducing an innovative technology to the global market (Jeffs, 2008). A unique concept would be to make all its cars completely automated. The automated system will consist of voice recognition software that allows the passenger to input the destination that he wishes to travel to. The car would then respond with automated voice response software after which it travels to the destination identified by the passenger through the help of a state of the art satellite-navigation system. I believe that this initiative holds tremendous potential as it promises to introduce driverless cars on the roads which will add to the convenience of the driver while also making roads a much safer place. Nissan can set up a manufacturing plant in China to carry out its operations so that it is able to enjoy various economies in production (Hitt et al., 2013). This paper assesses the current strategic position of the company in the global market with the help of a wide range of tools that will essentially conduct an internal and external audit of the company. This way, the paper will be able to determine how beneficial the introduction of the innovative technology will prove to be for the company.

Background

Nissan Motors came into existence when Automobile Manufacturing Co., Ltd. (Jidosha-Seizo Kabushiki-Kaisha) was created on Dec 26, 1933. The company took over all manufacturing operations pertaining to Datsuns from Tobata Casting Co., Ltd's automobile division on June 1, 1934 (Nissan Motor Company Global Website, 2012). Nissan's founder, Yoshisuke Aikawa, was a dynamic leader with grand plans and innovative strategies that enhanced the production capacity of the company, allowing it to mass-produce around 10,000 to 15,000 units per year. Nissan rolled out its very first unit of Datsun passenger car in April 1935 (Nissan Motor Company Global Website, 2012). The Datsun car became the symbol of Japan's growing pace of modern industrialization.

Over the years, Nissan has lived up to its reputation for excellence in engineering by playing a pioneering role in many fields of advanced technology (Nissan Motor Company Global Website, 2012). With the aim of improving fuel economy, Nissan has developed a variety of weight-reducing materials, such as high-tensile steel sheet for body panels, and has also created sophisticated engine management systems for controlling combustion. In addition, Nissan has also been a forerunner in developing and using CAD/CAM systems and industrial robots (Nissan Motor Company Global Website, ...