Impact of Global Trade on Nissan

Introduction

International business can be referred as the process of conducting trade operations beyond the national border. This presentation is going to discuss the impact of international business on trade of Nissan, Japanese automobile manufacturer. This presentation will also discussion international business strategies of Nissan and the analytical tool that this company is going to use to operate its international business process. This presentation will discuss the application of Porter’s Diamond Model into international business process of Nissan. Through using relevant theories in international business this presentation will discuss how Nissan deals with international business by setting appropriate global market strategies.

Nissan’s Background:

Nissan is Japanese multinational automobile manufacturing company, which has it headquarter in Yokohama. This company had been founded on 26th December, 1933. It sells wide ranges of products such as automobiles, commercial vehicles, luxury vehicles, forklift trucks and outboard motors. It has 5,556,241 production output units. Nissan operates it international business in many countries such as China, Malaysia, India, Indonesia, Vietnam, Australia, United States, Mexico, Brazil and others (www.nissan-global.com).

Importance and Impact of International Business to Nissan:

Importance:

International business is important to Nissan in terms of:

Improving the market position in the global business platform (Ayodele et al. 2019)

Developing the knowledge of marketers of Nissan about impact of external environment on its global trade operation (www.nissan-global.com)

Assisting marketers to understand the global market trend in automobile market (Barnier And Wright, 2017)

Developing appropriate global business strategies for Nissan in terms of grabbing attention of international investors customer and clients.

Benefits:

The benefits of global business to Nissan is as follows:

International business landscape assist markets to grab high level of competitive advantage (Johannessen and Johannessen, 2018)

Marketers of Nissan are able to strengthen their international market footprints

International business operation assists marketers to highlights the uniqueness of its automobile products Infront of international customers and clients (John et al. 2019)

International business benefits Nissan in terms of attracting international investors to make huge amount of investment in this company (www.nissan-global.com)

Challenges:

Challenges that Nissan can face while operating international business are as follows:

Political, cultural, economic, language, legal and social barriers in foreign country in which it is going to operate (Jona and Guxholli, 2018).

Strong competition by potential marketers in international market place, such as Jaguar, Land Rover, Aston Martin and Bentley are strong competitors of Nissan in the UK

Difficulties in getting skilled staffs, labours, suppliers and dealers in foreign countries (Johannessen and Johannessen, 2018)

Challenges faced in understating the market rend and customer buying behaviour in the foreign market (www.nissan-global.com)

Strategies used by Nissan in International Business:

Global market strategies need to be adopted by marketers of an organisation in terms of sustainable development in international market (Jona and Guxholli, 2018.). that Nissan has adopted in operating its international trade are as follows:

Global strategy:

Advertisement

Price promotion

Conduct tradeshows

Conduct B2B

Leadership strategy:

Nissan has applied democratic leadership strategy.

Organisational leaders involve its entire staffs in any type of organisational decision-making process and operations (Johannessen and Johannessen, 2018).

Partnership strategy:

Nissan has tied its partnership with automobile companies in foreign countries for attaining the business advantages.

Partnership strategy assist marketers of an organisation to extend the marketing footprint in the international market (John et al. 2019)

For example: Nissan has entered in partnership with Waymo and Renault

Analytical Tools Associated with Nissan in Globalisation:

The analytical tools used by Nissan are as follows:

Porter’s Diamond Model

Pestle Analysis

Porter’s Five Forces

SWOT Analysis

Porter’s Diamond Model as Applied to Nissan:

Theories of International Business

Marketers of Nissan will apply the following theories in term of operating its international business:

Absolute advantage theory:

Marketers of Nissan will focus on gaining advantage from:

More readily available resources in foreign countries such as skill sets, labours, suppliers, economic resources and environmental resources (Katz et al. 2016)

Comparative advantage theory:

Nissan focuses on improving its competitive position in international market by

Improving quality of its products and service (Katz et al. 2016).

Highlights the uniqueness of its products and service

Provide cars at reasonable market price (Kukovec et al. 2018)

Improve global promotional tools to approach millions of customers to enhance its competitive advantage

Reference list:

Ayodele, O.J., Innocent, I.O. and Garba, S.J., 2019. Innovation as a mediating of relationship between internal and external environment in agribusiness performance. Маркетинг і менеджмент інновацій, (1), pp.196-207.

Barnier, B. And Wright, C., 2017. The many facets of risk: internal auditors need to consider the variety of perspectives business functions have for managing risks. Internal Auditor, 74(2), pp.20-22.

Brunton, M., Eweje, G. And Taskin, N., 2017. Communicating corporate social responsibility to internal stakeholders: Walking the walk or just talking the talk?. Business Strategy and the Environment, 26(1), pp.31-48.

Johannessen, J.A. and Johannessen, J.A., 2018. Knowledge Management and Internal Training', Knowledge Management as a Strategic Asset.

John, J.K., Kilumile, J.W. and Tundui, H.P., 2019. Internal Branding: An Engine in Building and Sustaining Brand Equity–A Conceptual Paper. American Journal of Management, 19(5).

Jona, P.U.C.I. and Guxholli, S., 2018. Business Internal Auditing–An Effective Approach in Developing Sustainable Management Systems. European Journal of Sustainable Development, 7(2), pp.101-101.

Katz, B.R., Du Preez, N.D. and Louw, L., 2016. Alignment of internal and external business and innovation domains. South African Journal of Industrial Engineering, 27(1), pp.61-74.

Kukovec, D., Mulej, M. And Žižek, S.Š., 2018. Professional languages alone do not suffice for successful and socially responsible internal communication between different cultures. Naše gospodarstvo/Our economy, 64(3), pp.47-55.