Nissan Motors Strategy - Research Paper Example

Its main competitors in the world market are Toyota Motor Corporation, General Motors, Honda Motor Co. Ltd, Ford Motor Co., Daimler AG, Isuzu Motors Ltd., and Mitsubishi Motor Corporation. Nissan is third in the automotive industry in Japan, behind Toyota and Honda.The company has achieved rising revenues through the years but has been severely affected by the on-going economic crisis. Its product line includes the Sentra, Versa, and Altima sedan which was launched in North America in FY 2006, and Qashqai and X-TRAIL in Europe during the same year.

It has sold a significant volume of passenger vehicles, light commercial vehicles and heavy-duty trucks to China. (Nissan, Reuters)Nissan Motor Co. Ltd (NASDAQcm: NSANY) was trading at 10.16 on 17 April 2009, which was off its lowest level of 5.59 during the current economic crisis. Data from finance.yahoo.com is very sparse. However, google.com/finance reveals that the company has a recent beta of 1.45, a P/E ratio of 19.03, a dividend yield of 7.31 (with a dividend of 0.37), and earnings per share of 0.53.A firm’s financial performance over a number of years is an indicator of corporate, business, and functional strategies that underlie it, whether successful or unsuccessful.

On the part of Nissan, its extremely dramatic turnaround after its alliance Renault of France in 1999 and the steady growth up to 2008 shows that the company’s management has been able to steer the company towards sound profitability year after year, except for recent periods when the net income was heavily affected by the global financial and economic crisis.