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Professional and Consultancy Skills Consultancy Report on Nissan Motor Corporation

Established in 1933, Nissan Motor Corporation Ltd. is a household name in the automotive industry. More than 125,000 people work for the automobile giant, which has its headquarters in Japan and various assembly sites throughout the world. Over 2.5 million automobiles and trucks are built, manufactured, and sold by the business and its affiliated brands in more than 190 countries (Gunaratne, H., 2015).

In 1999, Nissan Motor Corporation and Renault, a French automaker, forged a cooperation that has yielded positive results for both companies throughout the years. Infiniti is a luxury automobile brand owned and operated by the Japanese automaker Nissan. Infiniti has a considerable market share in nations such as the United States, Canada, Russia, Korea, and the Middle East because of its creative goods and great performance in the automobile market. Nissan began producing the zero-emission Nissan LEAF in 2010, and it has since become one of the best-selling electric vehicles ever, thanks in part to Nissan’s commitment to environmental protection (Gunaratne, H.2015).

Any company, regardless of its size or scope or industry, must have a strategic plan; nevertheless, the automobile industry has recently faced considerable obstacles. The automotive industry must therefore develop and implement strategic plans quickly and effectively if it is to achieve its targeted organizational goals and objectives. The purpose of this report is to build a long-term business plan for a specific car manufacturer (Nissan Motor Company).

Analysis of the Current Situation for Nissan Motor Corporation

In the automotive business, connectivity has been a distinguishing aspect. As a result, modern conveniences like e-mobility, self-driving cars, and other forms of sophisticated mobility are already commonplace. Further infotainment systems, based on platform solutions owned and operated by future automotive businesses, are expected by customers in the automobile sector. When it comes to consumer behavior, the attractiveness of a brand is critical (Helbig et al., 2016). Autonomous driving technologies, batteries, and other high-tech items must meet the strictest quality standards to ensure consumer ownership of future automotive firms, according to Helbig et al. (2016). Smart traffic infrastructure like as charging stations and mobility supervision systems will be added to the car industry’s value chain in the future, in addition to connected services.

This scenario will help the automotive sector in the future since it will increase production efficiency and create new digital service capabilities. In addition, the software and related services department will benefit from this. When it comes to sensors, software and analytics, high-tech businesses will become increasingly important suppliers in the future automobile industry. New suppliers will be added to the supply chain, posing a significant challenge for automotive firms in the future. Strategic suppliers such as Google will be fierce competitors in the mobile space as well.

Strategic Recommendations

Identification of Potential Segment and Target Market

Finding the most profitable market groups is the strategy used in target marketing. Consequently, businesses can choose to focus on only one or a few of these sub-segments. They may be able to create goods and services for each of these groups. When a firm decides to produce and sell only one product, it is known as mass marketing. When a company decides to produce and sell only one product, it is known as product differentiation (in which a company offers a variety of products to a large market). STP, which stands for Segmentation, Targeting, and Positioning, was utilized to identify the case company’s future potential segment and target market. Companies can use this technique to determine which consumers are most valuable in order to produce products and services that are tailored to those customers.

Market Segmentation

Automotive customers can expect more infotainment systems based on platform solutions owned and maintained by automakers in the future, as shown in the case study. As the case study shows, a major percentage of cars in the future will be driven by a younger, more technologically adept generation due to advancements in connected, autonomous, shared, and electric vehicle technology. Customers’ opinions toward various modes of transportation and their capacity to use them will be taken into consideration by Nissan Motor Corporation while defining personalities. Personas (or user groups) with differentiating characteristics like age and environment settings will be evaluated in addition to the geographic segmentation approach.

The customers will be mapped into two user segments:

  • Consumers who are “Digital Natives” are the driving force behind the development of cutting-edge, environmentally friendly technologies. Customers who can afford high-end automobiles belong to the upper or middle classes.
  • People in this category are more averse to newer forms of transportation and are more likely to stick with the tried and true. The number of customers in each group could alter in the future, but the ratio of digital natives to non-digital natives would shift.

Market Targeting

Nissan plans to utilize a distinguishing targeting strategy based on mix segmentation in the future to better profile customers and develop products and services that cater to their specific needs. In most cases, a differentiated marketing strategy focuses on many market groups. As a part of this marketing plan, each segment is targeted with a specific marketing strategy and a particular product or service to meet the needs of its clients. In order to compete in the automotive sector of the future, the case manufacturer will target both clients in the Digital Natives category and those who are more technologically savvy. Hybrid and all-electric vehicles, as well as vehicles that include accident and roadside assistance services, are the emphasis of the Digital Natives market sector. In contrast, the market segment known as Technically friendly will concentrate on the development of cars powered by traditional internal combustion engines.

Market Positioning

Nissan has a reputation for being a firm that places a premium on consumer comfort and value for money when it comes to automotive products and services. In the future, this will continue to be the case as digital service production efficiency and capability creation both improve. Customers, especially those purchasing automobiles, are looking for the best deal possible. The capital layout of a car is typically extremely extensive. As a result, Nissan Motor Corporation must adhere strictly to the value price strategy. To do this, you must strike the perfect balance between price and quality (Haasbroek, 2007).

Identification and Explanation

The goal of the strategy is to lower the company’s manufacturing costs. By using cutting-edge technology and cheap labor, as well as minimizing administrative costs and gaining favorable access to sources of supply, this can be achieved. When a manufacturer competes on price, this results in larger unit profits than its competitors. Nissan Motor Corporation will not adopt this method in future production since the strategy focuses on mass market which is not the case in future production. As a result, its automobiles will command a high price on the market because of the high cost of manufacturing. A successful firm can be achieved by implementing any or all of these ideas.

Cost leadership

The goal of this strategy is to make products at the lowest possible cost for the businesses. The use of cutting-edge technology, low-cost labor, and fewer overhead costs, as well as better access to supply sources, can all help to achieve this. Increased unit sales are the result when competitors compete on price. Nissan Motor Corporation’s framework will not contemplate executing this plan in the future because the strategy concentrates on the mass market, which is not the case in the future automotive industry as depicted by Scenario 1. As a result of the high production costs, the cars will have extremely high retail prices.


If a company wants to differentiate itself from its competitors, it must offer consumers something unique and different from their competitors. To remain at the top of the market, a company’s product must be distinct and easily identified. Profits would be high despite the high cost of the product’s value and demand (Patrick, 2012). Using cutting-edge technology, innovation, and consumer preferences, Nissan Motor Corporation will produce automobiles that are luxurious and comfortable while also offering a variety of driving modes in the future. Because the company already manufactures electric vehicles, the easiest method to attract this target market is to implement future trends like shared mobility, autonomous driving, and networking. Competitive advantage will be gained by Nissan Motor Corporation as a result of this. Competition from Daimler, BMW, and Audi is already working toward reaching the future trends outlined in the preceding section, making this strategy vital for Nissan Motor Corporation.

Stuck in the middle

In order to use this strategy, a corporation must attempt all three of Porter’s principles and fail miserably at each one. A lack of competitive advantage is as a result. Failure to make a business decision is the source of the strategy (Starkey et al, 2004). For example, BMW’s purchase of Rovers when focusing on luxury automobiles to acquire greater distinction resulted in confusion between Germany and the United Kingdom.

Value Preposition options

The concept of value proposition is widely applied by companies in a wide range of industries. It is a company’s promise to its customers that it will offer a range of value-creating benefits that they can trust (Buttle, 2009). When it comes to the company’s value proposition, it is a written statement highlighting all of the company’s business practices that make a significant difference in the customer’s choice process, to choose and buy the company’s product over a competitor’s (Fifield, 2007). According to Lanning (1998), a value proposition is a whole collection of experiences that a company gives to customers, including value for money. Customers may think that this set of interactions is better, the same, or worse than the options they’ve previously encountered.

According to Anderson, Narus, and Rossum (2006), there are three distinct types of value propositions to take into consideration. Including all advantages, favorable points of distinction, and a resonating focal point. As a consequence of thorough market and competitive research, suppliers think that their products may provide end users with a long list of advantages. The supplier’s offerings stand out from the competition by virtue of their favorable points of distinction. To do so, the company’s strategy must be shaped by extensive information of the company’s next best competition.

Detail Description of the chosen Value proposition

Nissan plans to gradually transition away from traditional internal combustion vehicles toward more powerful hybrids and digitally enhanced vehicles in the future, providing drivers with the most engaging driving experience possible. New technologies will help to improve this ultimate driving experience for the customer throughout time. Tesla and BMW, for example, are saying that they will have the safest automobile ever and focused on performance in the future. As autonomous driving technology, linked services, batteries, and other high-tech technologies are developed, Nissan will need to ensure that they meet the highest quality requirements. The company will also focus on making sure that clients obtain value for money products and services while giving these high-tech products and services to the customers. As a result, fewer people will be injured or killed in car accidents.


Final thoughts on how to better serve customers and remain competitive in the automobile sector are presented to the client in the report. In light of the likes of BMW and Tesla, the automobile industry is already moving forward by making premium cars and utilizing high-tech services. In order to gain a larger portion of the market in the future, it is suggested that the client execute competitive strategy advantages. Building strategies around the value proposition presented in this study is a way to accomplish this goal.


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Gunaratne, H., 2015. NISSAN MOTOR CORPORATION: A Critical Evaluation of Company Strategy within an Industry Context. [online] Available at: <>.

Haasbroek, A., 2007. Brand positioning in the remarket automotive industry (Doctoral dissertation, North-West University).

Lanning, M. (1998). Delivering Profitable Value: A Revolutionary Framework to Accelerate Growth, Generate Wealth, and Rediscover the Heart of Business. Basic Books Wealth, and Rediscover the Heart of Business. Basic Books

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