The Nissan Motor Company Ltd is an international automobile manufacturer based in Yokohama Japan Nissan Motors Company functions under automobiles and sales sections. The automobile section is involved with car manufacturing, forklift, marine equipment, and their accessories. On the other hand, the sales section deals with sales money and leasing to assist in automobiles purchases. The corporation sells cars under various brands: Datsun, Infiniti, and Nissan. Currently, Nissan is the world’s largest manufacturer of electric cars. Today, the company boasts 320,000 electrical vehicle sales. Nissan LEAF is the leading electric vehicle in terms of company sales.
Nissan has a joint operating venture in China. Nissan’s net loss from the associate business in the quarter of the year was 285.6 billion yen. The global car’s production dropped in the first quarter to 12.49 Million vehicles. The total car sales fell to 643,000 vehicles in the first quarter. In Japan, Nissan sales dropped to 84,000 vehicles. However, the company’s share in the market increased by 11% due to enhanced Nissan Roox sales that started at the beginning of March. In China, Nissan sales decreased to 207,000 vehicles. However, the market share increased to 6.2%.In the United States, Nissan sales decreased to 177,000 vehicles. Due to the continuing negative effects of COVID-19 Nissan expects to record decreased sales towards the end of the year. Moreover, the Company postulates a decrease in the volume of the vehicle globally to 72 Million. Nissan expects a decline in the retail volume of 4 million by the end of 2020.
Nissan’s current strategy prioritizes sustainable growth and profitability. The company has rolled out a four-year plan to attain sustainable growth, stability, and profitability by 2023. The plan involves rationalizing costs and optimizing the business. Nissan will streamline its business by transforming unprofitable operations, additional facilities, and implementing organizational reforms. Also, the company will minimize fixed costs by rationalizing its production capacity, global product range and expenses. Thus, the current strategy is to ensure steady growth rather than expansive sales. Nissan plans to apply a differentiation strategy to achieve a competitive advantage. The company aims to continue producing unique electric vehicles with minimal environmental effects and sustainable costs in the market.
The main goal of Nissan company is to achieve steady growth and profitability. The company will utilize plans such as cost rationalization and business optimization. The company aims to invest in areas that will ensure recovery from the effects of fractured sales during the COVID-19 pandemic and ensure sustainable growth. Nissan is aligning this goal with its current strategy by rationalizing its production capacity and expenses. The reduced production prices will enable the company to minimize the prices and attract more customers . However, the company would rather have slow but steady growth rather than extreme growths and declines within a short period as witnessed during COVID-19.
Nissan corporation plans to achieve a 5% operating profit margin by the 2023 financial year.
Additionally, the company to reach a sustainable 6% share of the global market by 2023. The company will embark on their areas of competency to enhance its business quality. Also, they will maintain the financial discipline to achieve their postulated profitability.Order Now