Nissan Motor Company Ltd usually known as Nissan is a Japan based international automobiles producer having its head quarters in Nishi ku, Yokohama, Japan. Nissan Corporation sells its cars with the names of Nissan, Infiniti and Dastun.This company was founded in 1933 and since1999; Nissan has alliance Renault, which was a partnership between Nissan and the French automobile manufacturer Renault. In 2013, Renault had a voting authority of 43.4% in Nissan business operations, whereas Nissan only had a 15% non-voting stake in Renault. Nissan ranked as 6th biggest automobile manufacturer in the whole world, with Toyota, General Motors, Volkswagen Group, Hyundai Motor Group and Ford ahead of it. If the worth measured altogether, the alliance of Renault–Nissan is the world’s 4th largest auto manufacturer. Nissan is the leading Japanese brand in China, Russia and Mexico.
In electric automobile category of the automobile industry of the world, Nissan has famous brand in this category, with over 275,000 vehicles sold in mid-December 2016. Nissan is named as the world’s top electric plug-in vehicles selling brand. More than 240,000 Leafs have been sold worldwide through September 2016. Products produced by Nissan include automobile, luxury vehicles, business transport vehicles and fork lift trucks. This well known brand can further attain more profits by focusing more on business environment changes in the world in the automobile industry. Competitive strategies are required by the companies in automobile industry. Business environment analysis helps organizations to figure out the tactics need for stable future growth.
Nissan outsource many of the production process from other countries then Japan like in Asia and South America. Then government can set some rules for the industry to use the local resources for the benefits of own economy and produce high level of GDP. Political dynamics include all the political rules and security measures that force the organizations to change their business strategic decisions accordingly. The changing political scenario and the change in the political trends of the developing and the under developing countries has been laid direct impact on the Nissan Company. The very local rules pertaining to the local production of the parts could always be in the benefit of the company, as it can easily satisfy the local customers while understanding the requirements.
Economic factors like taxation, exchange rates, interest rates, population growth, demand, segment size and the buying power of the population are needed to be considered by Nissan to have more sustainable profits. The GDP of the country and maintain the balance margin in the investment are the important factors need to be kept in mind. Another important realm for Nissan to be kept in mind is the analysis of the auditing process of the company and the adaptation of the latest taxation laws.
The opinion about a product offered by an enterprise in the market is very significant. Nissan can benefit from these dynamics like the consumer approach towards cars has a positive response and also the urbanization rate is high in Japan, therefore social factors can help for more profits. The other social factors involves are that Nissan must reckon about the customers of the underdeveloped countries and their budget. The under develop countries are often the best place to do the investment and to fascinate the population of these third world countries.
New production technologies to manufacture the vehicles, updated information technological systems for smooth operations and promoting the vehicles to the right population through right means is very important for Nissan. With the growing competition in the market it has been incumbent on the company to focus on the state of the art technology and use the best latest equipment while the production.
Strict law implications like the safety of passengers and the environment are included in legal factors. These should be focused. Moreover the protection of designs produces by Nissan should be perfectly copy right to have a competitive advantage in severe competition. Rules and laws is the main stream domain that must be followed along with the local customary laws, in order to make a long term investment in the relevant country. These legal factors are always a driving force of Nissan.
Environmental rules need to focus on policies related to the automobile manufacturing. Nissan should focus on energy efficient and zero emission vehicles. The contemporary world has been showing very much concern about the environmental factors and the change in the climate therefore Nissan must always focus much on the relevant environment safety rule and regulations.