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QUESTION
Week 2 Discussion
This is a discussion question that I need answered. I need each bullet point answered thoroughly. There is a link in the attachment that will provide information needed to answer this discussion question. I need this order returned to me completed without any grammatical or punctual errors. The company that I want this question written about is Nissan.
The first step of the strategic development process is to determine the “Where to Play” choice which will then help you identify the segment of the market you are targeting and the competitors you will face.
- Review the Strategy Project Company Selection Guidelines and specify the company (and specific division or product if your company is large and diverse) you will use for Assignments 1, 2, and 3.
- How would you define the Playing Field for this business (the specific segment of the market where you will choose to compete)?
- Using the guidance from The Five Forces article, what conclusions would you draw regarding the profitability of this Playing Field? Would it be a higher or lower profitability than average, and why?
| Subject | Business | Pages | 3 | Style | APA |
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Answer
Market Selection in Strategy Development
A firm’s competitiveness and success in a given market segment hinges principally on how strategic the process of choosing the market/industry was. The current paper offers a brief description of the market segment that Nissan Motor Corporation currently competes in.
Company Review
Nissan – a Japanese-based automaker headquartered in Yokohama – operates through two key business segments: Automobile and Sales. Under the automobile segment, the company manufactures and markets various automobiles, ranging from vehicles to marine equipment, forklift tracks, onboard motors and related parts (Forbes, 2020). Vehicles manufactured by the company include budget sedans, luxury sports utility vehicles (SUVs) and commercial vehicles. Nissan has also joined other automakers in efforts to promote sustainable transport by entering the electric vehicles (EV) market. As of April 2018, Nissan sold approximately 320,000 fully electric vehicles, making it the world’s largest manufacturer of EVs (Nissan Motor Corporation, 2018). The focus of this strategy development project is to assess the level of competition and profitability in the EVs market.
Description of the Business’s Playing Field
The market segment (Playing Field) under consideration is the electric vehicles (EVs) market. This market can be described as an emerging, competitive and lucrative market with a high growth potential. Concerns around the environmental impact of vehicles powered by diesel and petrol are driving more and more automakers to introduce EVs that have the least carbon footprint (Al-Alawi & Bradley, 2013). This means that the EVs market is an emerging market, but very competitive. Notably, Nissan LEAF, which is Nissans best-selling all-electric car is experiencing stiff competition from brands produced by other automakers, including Tesla, Toyota and Cadillac. However, the fact that many governments across the world, especially those in developed nations, are encouraging adoption of EVs, through infrastructure development, implies that market of EVs has higher growth prospects (Zhou et al., 2015).
Profitability of the Playing Field
The Five Forces model, developed by Porter, analyzes the level of competition, and profitability in the business environment by looking at the influence of buyers, suppliers, competitors, and substitute products, as well as, at the ease of entry of new firms (Porter, 2008). Applying the model to the EV market, it can be argued that the “Playing Field” has high profitability for various reasons. First, Nissan experiences low level of buyer power, moderately high supplier power, and low threat of new entry as there are many barriers to entry in the market. However, the company faces significant competition from General Motors, Toyota, Ford, Tesla, Hyundai and other automakers that produce and sell EVs. Second, many governments now offer subsidies and incentives on production and sell of EVs as part of strategies to promote their adoption, which makes the EVs’ market even more profitable than the industry average (Zhou et al., 2015).
References
Al-Alawi, B. M., & Bradley, T. H. (2013). Review of hybrid, plug-in hybrid, and electric vehicle market modeling studies. Renewable and Sustainable Energy Reviews, 21, 190-203.
Forces. (2020). Nissan Motor. Retrieved October 14, 2020, from https://www.forbes.com/companies/nissan-motor/#17f61d59bf92
Nissan Motor Corporation. (2018, April 25). "Nissan Leaf" records strong sales in 2017. Retrieved October 14, 2020, from https://global.nissannews.com/ja-JP/releases/release- 36a71146ed04eaba0f0dff94b50d1196?source=nng
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40.
Zhou, Y., Wang, M., Hao, H., Johnson, L., & Wang, H. (2015). Plug-in electric vehicle market penetration and incentives: a global review. Mitigation and Adaptation Strategies for Global Change, 20(5), 777-795.