Nissan's Innovation Weaved Into Ma-Africa Case Study

Great Essays
Nissan’s innovation weaved into Ma’ Africa

About twenty years ago, Nissan set foot in Africa. At the time, Nissan imported and shipped its vehicles directly from Japan, appointing traders with a focus on sales with not much else happening.

By the start of the 21st century, several automotive manufacturers grasped Africa’s enormous potential, and suddenly, distributors and small manufacturing plants set up shop all over in emerging Africa counties.

By 2005, the industry was starting to take strong hold. By then, Nissan already threaded a trading network across the continent with an acute understanding of Africa’s complexities.

“But it was only during 2008 when we really took control of our destiny in Africa,” says Jim Dando, General Manager
…show more content…
Since quality engineering is of the essence, Nissan brought in skilled engineers and talents from across the world to train people locally, thereby providing jobs and investing in skills development.

“As we grow, and the plant getting better and bigger, we’ll be able to offer more opportunities to Nigerians with large investments towards their development and capacity building.”

Nissan sees opportunity for rapid growth in Nigeria, and was market leader in calendar year 2015 from January to April. “The potential in Nigeria remains huge, purely because of its high population, upcoming entrepreneurs and rapidly growing middleclass,” Dando says.

“Angola was a total surprise,” admits Dando. “It was actually the first country where we could see the emergence of the middleclass and how quickly it grew.”

“At first the Angolan market looked unsuitable, but then we realised the road network in and around Luanda has grown tremendously well, going from broken down to well developed, and wealth creation possibilities was exponential.”

However due to the slump in the oil industry and overall economy, and the exchange rate challenges, Nissan paused operations a bit in Angola. “We will wait it out, the economy will come right as it always
…show more content…
“It’s the first time we experienced such a long depression of economy in Ghana, but Nissan keeps pushing forward.”

In 2014 FY, Nissan held the number one position in Ghana, Zimbabwe, Mauritius, and Mozambique.

In Zimbabwe, Nissan vehicles are supplied directly from South Africa to three officials Nissan dealers. “Previously Zimbabwe was managed from out South Africa, but today it has a well-oiled dealership network,” Dando says.

The Mauritius dealership seems to be the star in Africa, operating in a very well developed market according to Dando. “If you have the right product and right price, it just goes.”

“The challenge there is, the country is small with a limited population and I think we’re close to reaching saturation point. The growth might not be great, but Mauritius remains a large contributor to our success.”

Ethiopia has a large population of 94 million and still growing, with a curved market growth trajectory. Dando says, “We simply need to be there as it’s sub-Saharan Africa 's fifth biggest economy and a focal point of emerging industries.”

Nissan’s strategy for its dealer network expansion in Africa is underscored by strong relations with its National Sales Companies (NSC) and direct to dealer

Related Documents

  • Improved Essays

    Next, a SWOTs analysis conducted to identify internal environments and external environments that impact on achieving Cool Cars business goals. It is crucial to have in-depth understanding the external and internal situation of the company before developing a marketing plan for Cool Cars. STRENGTHS: - Strong brand in high-income segment: three out of four brands target high-income segment. Primary buyers are 4L, 4F, and 4S. - Quality products: Cool Car is valued on its engineering capabilities.…

    • 808 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Stealing Africa - Why Poverty, Directed by Christoffer Guldbrandsen. 2012. The documentary, “Stealing Africa: why poverty,” is directed by Christopher Guldbrandsen who reveals the investigations about the Glencore Mining Corporation and its operations and mechanism of copper mining in Zambia. According to filmmaker, the Glencore is making billions of profit from copper mines while the country Africa remains one of the poorest in the world as compared to other countries.…

    • 969 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Secondary 4 Integrated Humanities Scenario Study 1 (2016) Assignment 1 Name: Claire Mak Class: Sec 4 / 08 Analyse the causes of conflict in Angola. Background of the Civil War in Angola The Angola civil war that began in 1975 has its roots in the fight for independence from Portugal starting in 1961. During the struggle for independence, three main insurgent groups were formed.…

    • 1776 Words
    • 8 Pages
    Improved Essays
  • Decent Essays

    1. Objective This report summarizes an Internal and External environmental audit of automobile industry in UK using PESTEL, SWOT and Porter’s Five Forces Analysis. 2. Brief Introduction of Automobile Industry in UK…

    • 1097 Words
    • 5 Pages
    Decent Essays
  • Improved Essays

    Volkswagens International Presence Over the last 40 years Volkswagen (VW) has attempted to establish itself on a global market. Their main influence has ranged from mature markets like the USA (Browning, 2011) to emerging countries like China (Wei, 2014). Both Wei and Browning agree that VW have been able to successfully implement themselves into their selected markets which highlights VWs global presence. Cartwright (2011, p. 27) identifies…

    • 1179 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    As we know, China, India, those development countries has getting more power and higher status in the market, looking for new partner for GM as quick as possible is a good way to take the head of peers. Additionally, continuing to expand globally and try to develop new vehicle styles and models, satisfy the people’s new view to…

    • 1295 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Our company, Benetton Group is one of the biggest business in the world, with many popular brands in a wide range of selection. Our sales and operations have increased significantly and they continue to do so. I am here to talk about the two different strategies that our management team is considering for the future. The first strategies being that Benetton should consider the expansion of their manufacturing and production to developing economies to grow sales of the company in those developing markets. The second strategies suggests that Benetton should find ways to provide supplementary help and support for retailers around the globe, but especially for the few who are operating in developing economies against advanced competitors and are…

    • 841 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Heading Towards Future Accenture recently conducted an international study of 10,000 consumers which found that 80% of drivers seeking to purchase a new car are using digital technology to research their buying preferences, and nearly two-thirds (62%) are initiating the car-buying process online, including consulting social media channels, before entering a dealership. As the sales collapsed in UK, the luxury car brands have as a replacement for turned towards emerging markets for growth. The global expansion strategy will differentiate the markets and it will reduce investments in mature markets as in USA and Europe. Aston Martin strategy is to raise funds to supporting strategy of global expansion, for reaching emerging markets, in order…

    • 1422 Words
    • 6 Pages
    Superior Essays
  • Great Essays

    YG Case Study: Brand Yg

    • 2049 Words
    • 9 Pages

    Even though there we availability of big global brand there was a big niche opportunity which lied untapped. And the market vastness of this market along with the affinity of the population to fashion brands was a major advantageous position for this brand. Customers did not have many choices in brands as it were either highly expensive global brands or the look like local brands. There was a big segment in the middle, which was untapped till now which caters to the middle-income group of the market. This market has a good mix of rich African investors, plus a major chunk of middle-income groups and the low-income groups who always aspire to ape the segment above.…

    • 2049 Words
    • 9 Pages
    Great Essays
  • Improved Essays

    6.2.2.1 Factor of development strategies Seven KCIs were divided into a factor comprising development strategies: KCI-12 reputation, KCI-53 brand, KCI-17 research and development, KCI-16 risk management, KCI-32 the level of Internationalisation, KCI-7 communication and cooperation and KCI-11 value-added for stakeholders. KCI-12 Reputation Gerard et al (2016) defined reputation as beliefs or perceptions held about the quality of a focal actor. In a firm, corporate reputation has intangible value for organisations and is the most important strategic and long-term organisational asset. Corporate reputation provides opportunities to organisations in developing and retaining market share, influencing opinion of customers and other stakeholder groups (Sontaite-petkeviciene 2014).…

    • 2404 Words
    • 10 Pages
    Improved Essays
  • Improved Essays

    Legacies Of Colonialism

    • 783 Words
    • 4 Pages

    The history of Colonial Empires is both a complex and an enduring one. During the nineteenth century, several reasons ranging from political, ideological, to economic interests paved the way for colonial expansion. However, it was the industrial Revolution which led to the successful rise and growth of the British and European Empires. The industrial revolution has had a major impact on colonial expansion, the rapid development of technology and the emergence of new machinery with new and improved engines and modes of production led to the British and European colonization. “Industrial production, like all modes of production, requires human resources, capital resources, and natural resources.”…

    • 783 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    The company has a geographical spread across Africa with a plant in South Africa, the Republic of Congo and Zambia in Central Africa, Ethiopia and Tanzania in East…

    • 1201 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Primary Activities – these are activities that relate to the physical creation of the product, sales and after sales service • Inbound & Outbound Logistics: From the supply of components and engines required to assemble generators and the distribution to the end users the supply chain team in Dumbarton manages Aggreko’s supply chain. Managing the suppliers of both finished products and components for assembly is an integral part of their businesses. The long standing relationships with the suppliers and sourcing relationships across the globe are monitored closely to ensure that services provided comply with Aggreko’s quality standards. • Operations: Aggreko designs and assemble most of their power equipment using its specialist in-house teams.…

    • 884 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    African Growth and Opportunity Act (AGOA) Impacts and benefits of the 2015 Extension and Enhancement Act Introduction Thesis: The African Growth and Opportunity Act (AGOA) expired in September 2015. The United States and African leaders explored the ways to improve the 14-year old legislation to make it more well-suited with the changing economic landscape in Africa. AGOA provides about 6,500 African products with preferential quota and duty-free access to the US market.…

    • 818 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    As well as NMUK, Nissan operates four other UK sites. The factory is adjacent to the UK Nissan Distribution Centre (NDS) and has a number of on-site suppliers.…

    • 1672 Words
    • 7 Pages
    Superior Essays

Related Topics