Situational Analysis
Company History
Nissan emerged as a direct result of the perseverance of Masujiro Hashimoto, who
created a company that constructed, repaired and imported cars to Japan for sale. Over
the next twenty years, the company merged with others, eventually being purchased by
Tobata Casting. Though Tobota Casting focused on auto parts and cast iron, the firm
recognized the demand for small cars, so in turn Nissan was spun off as a result in 1933
(Lambert). Due to the events of World War II, the Japanese government initially limited
the production of Nissan to airplane engines and trucks. After WWII, Nissan reentered
the car market, eventually landing a product in the United States, the 211. However, the
original vehicle line in the United States happened under the name Datsun, which was
eventually changed to Nissan in the 1980s. However, consumers struggled with the name
change, which took over six years to complete, as the removal of the Datsun name was
confusing and created uncertainty.
Nissan continued to maintain a share in the market, even expanding to include the luxury
line Infiniti in 1989. However, Japan suffered a major economic recession in 1993,
leading to four straight years of losses for the automaker. Nissan received an $827
million dollar bailout the following year, but the debt began to drown the company.
Thus, Nissan invited investors to buy into the firm in 1999, along with installing Carlos
Ghosn as COO. Within two years, Nissan was again generating profits, but the growth
process was only beginning. The company eventually had Ghosn transition into the role
of CEO in 2001, followed by the unveiling of several new vehicles, including: the
Murano (an SUV), the Titan (a full-size pickup), and the Armada (a full-size SUV).
Nissan has realized some gains since its introduction of these larger vehicles, though its
attempts to align with other companies. including Chrysler, have not come to fruition.
Current Sales
Nissan realized major gains in sales in 2010, with total sales equaling 4,185,000 units, a
jump of 19.1% from the previous year. Moreover, the company outperformed the growth
of the global industry by 12.6%. The marked increase in sales resulted in Nissan
maintaining a 5.8% market share. The increase in sales was a direct result of the
unveiling of ten new models of already existing lines, along with the introduction of
Nissan’s first no-emission yet price-friendly vehicle.
Japan’s sales saw a decline in 2010, but the market share increased to 13.0%. This
decline in sales accompanied by an increase in market share can be explained by the
reduction in personal transportation in Japan. However, Nissan sales in the United States
increased 17.3% in 2010. These gains allowed Nissan to realize its largest market share
ever, 9.3%.
The sales projections for 2011 include a 9.9% overall growth rate in the global market.
Nissan also expects to increase its market share to 6.1%. The growth rate in the United
States is projected to again increase, as Nissan hopes to realize a 7.7% increase in sales.
The projected increase in sales can be attributed to the release of new innovations and
technology including Back-up Collision Intervention and Around View Monitor.
Lambert, Sylvia. "Nissan Motor Co., Ltd." Hoover's. Dun & Bradstreet, 2011. Web. 18
Oct. 2011. <http://subscriber.hoovers.com.ezproxy.tcu.edu/H/company360/
history.html?companyId=41879000000000>.
http://www.nissanglobal.com/EN/DOCUMENT/PDF/AR/2011/AR2011_E_p18_Sales_P
erformance.pdf