Case Assignment: Nissan
Prolonged success for auto manufacturers is likely to come from their ability to sell cars in rapidly developing countries like Russia, Brazil, India, and Indonesia. However, selling cars in these emerging markets can be complicated, especially for foreign companies. Nissan is one company that has struggled to expand into emerging markets: its overall share of auto sales is 6 percent, but its share in Brazil is just 1.2 percent. With the goal of increasing its global reach, Nissan announced that it would revive the Datsun brand name and develop six new vehicles specifically designed for emerging markets' growing middle classes. The company aimed to produce modern, stylish cars that appealed to consumers visually, and more importantly, fit into their budgets.
In bringing back the Datsun brand, Nissan in effect created a distinctive identity for the unique set of cars that comprised its new global venture. The emerging middle class wants cars, but it can't afford to spend $15,000 to $20,000 on a family sedan. Thus, automobile companies like Nissan need to create small, extremely affordable cars; to do so, they must often take a bare bones approach. That means no air conditioning, no passenger air bags, and no power windows. While Datsun will provide entry into the market, the Nissan brand will continue to be sold as upscale, feature-rich cars. According to Ammar Master, an analyst at LMC Automotive in Bangkok, "Datsun could bring in volumes at the lower end of the market...While the Nissan brand will continue to move upmarket."
The cases are designed to ensure that you apply the concepts in real business situations. The summary should focus on (1) the key business problem(s) /opportunity(s) that needs to be addressed (2) state any new information required to bring the case up-to-date and current (this necessitates searching for information outside of that provided by the case such as surfing the internet to address what has happened to the company and/or industry since the time of the case), (3) offer substantiated recommendations to address the stated problem(s)/opportunity(ies). Your recommendations should effectively integrate both case and current information to offer viable options for the company/industry. Your summary should at least 200 words.