The process of rapid globalization has resulted in the enterprises’ increased demand in terms of the product adjustment to the global market standards. According to researchers, global strategy is primarily aimed at developing a strategic plan for promoting the product in the markets throughout the world through the identification of a unified business model (Hartman et al., 2017). Thus, the companies willing to obtain a competitive advantage are to thoroughly calculate the means of entering the global market while considering ethical and economic principles of the environments throughout the world. The goal of the following analysis is to identify the peculiarities of the global strategy employed by Nissan Motors and define the implications of transnational global strategy adoption by the company.
Nissan Motor Company is a Japanese automobile company established in 1933. Over the decades of existence, the manufacturer has managed to become one of the most successful retailers in the Asian market. Yet, in the 1990s, the situation began to deteriorate rapidly due to competition. In order to address the issue, Nissan Motor executives decided to make beneficial partnerships with other manufacturers and pool their efforts to secure positive outcomes for both stakeholders (Toma & Marinescu, 2013). As a result, in 1999, Renault Company, a French manufacturer, agreed to create a partnership with Nissan, leading to the companies’ rapid increase in terms of product demand and financial performance. Under the new leadership, Nissan eventually turned into a powerful global corporation, the maintenance of which required a new performance strategy.
Since the company’s enhancement, Nissan needed to define the ways in which the automobiles introduced to other markets might create a powerful competition for the local manufacturers. As a result, Nissan and Renault defined the alliance patterns, according to which they introduced their product to the market through one of the companies depending on the geographics (Toma & Marinescu, 2013). The major challenge used to drive the company’s operating strategy was its potential ability to encompass and secure the 13 cross-functionals processes, including policy, standardization, human resource management, quality, and control. As a result, the key issues arising in the process of global strategy development concerned the process of maintaining steady economic growth during the expansion. Moreover, another detrimental issue for such companies as Nissan concern the idea of sustainability and corporate social responsibility (CSR) as key factors impacting the customer’s purchase intentions.
Reflecting on the aforementioned issues for the company, it may be concluded that Nissan’s primary goal in the modern context would be to continue working on product localization. The introduction of sustainable policies across markets determines both the company’s image and relevance in the market and economic value-added. One of the ways to solve the issue is to implement the reconsideration of resources used for production. According to the alliance established, the manufacturing centers are allocated across various areas in order to secure the product’s economics. As a result, the reconsideration of raw material suppliers in the area for the sake of sustainability might be beneficial for both company’s image and product price policy (Budiman et al., 2018). Another solution would be to reconsider every supply chain stage throughout the enterprise’s entities in order to define the steps that may potentially affect the product’s lack of sustainability in a chosen market.
Having closely analyzed the ideas behind the company’s management, it may be outlined that the notion of global strategy as a unified approach to all markets by no means applies to Nissan. On the contrary, the company’s major goal should be to secure high levels of product flexibility in terms of localization. Thus, the solution that benefits the situation is to place major emphasis on the vehicle’s adoption to the market’s cultural and functional peculiarities.
According to the research on transnational strategies, the global corporations who put effort to customize a globally accessed product result in higher demand and admiration among the potential buyers (Bartlett & Beamish, 2018). Such a strategy may as well imply the reconsideration of resources, as supporting local manufacturers may be more beneficial in terms of finance and human resource management. Another issue to consider in terms of global strategy development is the significance of global cooperation. When analyzing tobacco companies that used to struggle with differences in local tobacco policies, one may note that international collaboration in terms of the requirements’ identification contributes positively to the global strategy development (Hawkins et al., 2019). Hence, in the case of Nissan, the encouragement of policy reconsideration, along with much attention paid to product localization, may enhance global performance drastically in the long run.
Global strategy planning is a complex endeavor that requires much effort in terms of proper realization. Due to an existing variety of meanings behind the notion of global strategy, it is important to analyze the chosen business segment in the context of demand and the purchaser’s intention. In the case of Nissan’s global planning, localization and transnational model of cooperation, in general, may be outlined as crucial for the business’s success. The peculiarities of the transnational model, in their turn, encompass customization and international collaboration in terms of public manufacturing policies.
Bartlett, C. A., & Beamish, P. W. (2018). Transnational management. Cambridge University Press.
Budiman, H., Suparman, E., & Mashdurohatun, A. (2018). Spatial policy dilemma: Environmental sustainability and economic growth. UNTAG Law Review, 2(1), 01-11.
Hartman, L.P., Werhane P.H., Clark C.E., Vansandt C.V., & Sud M. (2017). Strategic global strategy: The intersection of general principles, corporate responsibility, and economic value-added. Business and Society Review, 122(1), 71-91.
Hawkins, B., Holden, C., & Mackinder, S. (2019). A multi-level, multi-jurisdictional strategy: Transnational tobacco companies’ attempts to obstruct tobacco packaging restrictions. Global public health, 14(4), 570-583. Web.
Toma, S. G., & Marinescu, P. (2013). Global strategy: The case of Nissan Motor Company. Procedia Economics and Finance, 6, 418 – 423.