Nissan Motor SWOT & PESTLE Analysis

Strength

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Weakness

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Opportunity

1. Hybrid and electric vehicles: Industry experts believe that 20% vehicles sold around the world are expected to be powered by a hybrid source in 2020. The volume of the global hybrid vehicles market is expected to double from 2014 to 2020. Nissan’s alliance with Mitsubishi gives it a good advantage to venture into this segment. Nissan also has been one of the pioneers in the electric vehicle segment and it should use it as a pioneering advantage to be a global market leader. Electric vehicle (EV) sales grew 60 percent worldwide last year, according to Bloomberg New Finance that predicts electric vehicles will account for 35 percent of new car sales globally by 2040.

2. Untapped African markets like Nigeria: According to a PWC report, Nigeria has the potential to become the hub of Africa's automotive industry. It is Africa’s largest economy and is seemingly lucrative destination for investors across all sectors. Nissan recently set up its division in Nigeria and hence could strive to be a market leader in countries like these. The report also talks of relationship between car sales and GDP for other emerging countries Brazil, Mexico, Indonesia.

3. Autonomous driving cars: Nissan’s collaboration with Microsoft and Cortana gives it an edge over only tech companies that are venturing into this segment, since it is difficult to imagine that consumers will leave the core of automobile company in favor of technology companies producing cars.

Threat

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Political

1. Brexit may require adjustments in Nissan’s UK business: Britain voted to move out of EU in an historic referendum in 2016. The economic and trade terms post Britain’s exit are still uncertain and they may have major implications for Nissan’s business. Nissan employs more than 7,000 staff at its Sutherland plant and if Nissan does not enjoy the same trading conditions after Brexit as before it may need to cut down its UK operations. This would also result in significant job losses.

2. Expansion in Iranian markets post easing of sanctions: Iran and the global powers signed the Joint Comprehensive Plan of Action in 2015 which has eased the sanctions on Iran. Iranian markets provide a lucrative opportunity for expanding operations for the Renault-Nissan joint venture post the deal. The rate of car ownership in Iranian markets is just 100 per 1,000 people and there is huge market potential.

Economic

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Social

1. Consumer preferences for environmental friendly transportation: The global automobile industry is going through a major transformation phase. There in increasing consumer awareness towards the negative impacts and costs of fossil fuels and thus manufacturers are developing electric and hybrid vehicles which are increasingly in demand. Nissan has introduced Nissan Leaf in the United States and Japanese markets and stands to benefit from the growing electric vehicle adoption.

Technological

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Legal

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Environmental

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