Environmental Scan & SWOT Analysis Research Paper

Environmental Scan & SWOT Analysis - Research Paper Example The approach by the company in the last five years has been the milestone in the establishment of a global brand. Through focusing on brand pyramid and dynamics encompassing silky design, pleasurable experience, and the interplay between driving pleasure and serenity, the corporation established consistency and high level alignment in the sector (Anushree, 2012). Additionally, the global financial position has been useful in the strength creation which is vital in the wadding off competition. One major financial indicator is the overall growth of the corporation. From the financial year of 2002 t0 2006, Nissan experienced an average growth in revenue of 13.8%, net income growth of 11.33%, and a net asset growth of 15. 62%. The values indicate the financial strength of the organization (Cleland & Ireland, 2006, p. 22). Weakness Despite the positives, the company has several key weaknesses that could lead to serious problem in case of the increase global financial crisis. The company r elies heavily on overseas markets which may be affected by the increasing financial crisis and recess. The second major weakness is the product innovation time lag. For instance the company launched two new or redesigned vehicles. This is low compared to 14 in the three previous years. The result of the misjudgment may affect the brand visibility due to the increasing competition. Thirdly, the Japanese market does not use diesel as such diesel vehicles accounts for only 0.4% but the usage of diesel engines in the euro zone is high. The major problem is that the company has not invested in the development of the diesel engine leading to the technological drawback (Boone & Kurtz, 2011). Opportunity The major opportunity existing in the Asian market is low penetration and improved income levels leading to continuous jumps in the demand for vehicles. This is an opportunity that can be grasped to increase profitability. Secondly, the relocation of the manufacturing units to regions with lower production costs leads to the better and improved profits for the corporation. Additionally, manufacturing units in America and Europe have huge capacities in line with their vast domestic automobile output (Chilton & Bloodgood, 2010). The creation of the Renault-Nissan purchasing organization in 2001 helped in the combination of resources to create an efficient organization. Threats Cross-cultural disharmony is created through the integration of Renault and Nissan. The occurrence of disharmony creates a challenge for the corporation and may result in serious problems if not properly solved (Cleland & Ireland, 2006). Additionally, the rising commodity price is a major threat for the company because it increases the production cost. The rise of cost of raw material such as steel will create a vital threat to the corporation. Finally, market saturation can affect the corporation in line with the changes in the market demands. The rise of the SUV market is a testament of the chan ge in the product and market innovation, which in turn affect the market composition (Anushree, 2012). Environmental Scan Environmental scan addresses the issues of political, economic, social, legislative and environmental concern for the company. After the global financial crisis experienced in 2007 to 2009, changes have been instituted in the financial and banking sectors.