Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B)
This is the first of a two-case series. When Renault sent Carlos Ghosn to turnaround its alliance partner Nissan, observers were skeptical of his chances. After soliciting recommendations from the employees, he unveiled a three-year plan involving plant closures, job cuts, and a refocus on design. Within two years, the company had achieved a dramatic recovery, posting record profits and proposing a dazzling array of new models. Note that there are two versions of the case: 'Redesigning Nissan (A) & (B)' covers the dynamics of taking charge (case A) and the process of leading change (case B). There is also a combined and condensed version of the cases: 'Nissan's U-Turn: 1999-2001', for instructors wishing to cover the material in a single session.
Swot Analysis of "Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B)" written by Jean-Francois Manzoni, Jean-Louis Barsoux, Kathryn Hughes includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nissan Nissan's facing as an external strategic factors. Some of the topics covered in Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) case study are - Strategic Management Strategies, Cross-cultural management, Design, Joint ventures, Leadership, Product development, Productivity, Reorganization, Supply chain and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) casestudy better are - – wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nissan Nissan's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nissan Nissan's operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) can be done for the following purposes –
1. Strategic planning using facts provided in Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) case study
2. Improving business portfolio management of Nissan Nissan's
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Nissan Nissan's
Strengths Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nissan Nissan's in Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) Harvard Business Review case study are -
Highly skilled collaborators
– Nissan Nissan's has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Nissan Nissan's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nissan Nissan's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Cross disciplinary teams
– Horizontal connected teams at the Nissan Nissan's are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) firm has clearly differentiated products in the market place. This has enabled Nissan Nissan's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Nissan Nissan's to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Nissan Nissan's has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Strong track record of project management
– Nissan Nissan's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Nissan Nissan's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Strategy & Execution field
– Nissan Nissan's is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Nissan Nissan's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Nissan Nissan's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Low bargaining power of suppliers
– Suppliers of Nissan Nissan's in the sector have low bargaining power. Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nissan Nissan's to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Nissan Nissan's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nissan Nissan's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) are -
Slow decision making process
– As mentioned earlier in the report, Nissan Nissan's has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Nissan Nissan's even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High bargaining power of channel partners
– Because of the regulatory requirements, Jean-Francois Manzoni, Jean-Louis Barsoux, Kathryn Hughes suggests that, Nissan Nissan's is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Nissan Nissan's supply chain. Even after few cautionary changes mentioned in the HBR case study - Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nissan Nissan's vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Nissan Nissan's has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Low market penetration in new markets
– Outside its home market of Nissan Nissan's, firm in the HBR case study Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Nissan Nissan's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B), it seems that the employees of Nissan Nissan's don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B), in the dynamic environment Nissan Nissan's has struggled to respond to the nimble upstart competition. Nissan Nissan's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Nissan Nissan's has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Aligning sales with marketing
– It come across in the case study Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) can leverage the sales team experience to cultivate customer relationships as Nissan Nissan's is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Nissan Nissan's is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Nissan Nissan's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Nissan Nissan's to focus more on services rather than just following the product oriented approach.
Opportunities Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) are -
Creating value in data economy
– The success of analytics program of Nissan Nissan's has opened avenues for new revenue streams for the organization in the industry. This can help Nissan Nissan's to build a more holistic ecosystem as suggested in the Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) case study. Nissan Nissan's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Nissan Nissan's to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Better consumer reach
– The expansion of the 5G network will help Nissan Nissan's to increase its market reach. Nissan Nissan's will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Nissan Nissan's to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Loyalty marketing
– Nissan Nissan's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nissan Nissan's is facing challenges because of the dominance of functional experts in the organization. Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Nissan Nissan's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Nissan Nissan's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Nissan Nissan's to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Nissan Nissan's can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Leveraging digital technologies
– Nissan Nissan's can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Buying journey improvements
– Nissan Nissan's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Building a culture of innovation
– managers at Nissan Nissan's can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Manufacturing automation
– Nissan Nissan's can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Threats Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) are -
Consumer confidence and its impact on Nissan Nissan's demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Nissan Nissan's will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Nissan Nissan's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B), Nissan Nissan's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Technology acceleration in Forth Industrial Revolution
– Nissan Nissan's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Nissan Nissan's needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Regulatory challenges
– Nissan Nissan's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nissan Nissan's in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing wage structure of Nissan Nissan's
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Nissan Nissan's.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Nissan Nissan's in the Strategy & Execution sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nissan Nissan's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Nissan Nissan's can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) .
Weighted SWOT Analysis of Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Nissan's U-Turn: 1999-2001: Condensed Version of Redesigning Nissan (A & B) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Nissan Nissan's needs to make to build a sustainable competitive advantage.
