Nissan Corp Swot Essay

Global interdependence: possible new marketsGovernment regulations: abroad in other countries as well as US and the US; global warming, CAFE standards, safety issues Growth of existing market: widen market New entrants: threat of potential inclusive of generation X,Y and baby boomersnew competitors Strong economy: economy not faltering;Changing market tastes: need for consumers still buyingcontinuous innovation to appeal to ifferent segments Nissan’s reputation: leads the industryShortage of resources: workforce in reliability, performance, and design dissatisfaction, hiring good talent Emerging technologies: innovative through the development of technologies for improving fuel economy and reducing fuel emissions Introduction This Case Paper will examine accessible information about Nissan Corporation and determine its position in the world market through a business SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). Through this analysis, we hope to see where the Nissan has been and make suggestions as to where the corporation should go to improve their bottom line, increase market share, and plan for future products to ensure their viability in the world automobile marketplace. Market Analysis Nissan’s focus in establishing a multi-cultural company begins with regaining global market share. The company has learned from past mistakes and is determined to succeed, developing a common vision and a global ompany culture that will need to be a main driver for continued strength (Associated Press, pgs. 1-8). For instance, establishing a brand name and personality that is sensitive to nationalistic cultures. Strategic alliances and joint ventures are growing in importance in the automobile industry and Nissan is no stranger to the competition. Nissan’s mission statement delivered by Mr. Ghosn in the Automotive News World Congress in 2001, is evidenced in how the company exploits synergie s to create positive alliances with other manufacturers (Ibid). For example, Nissan’s announcement to venture with Ashok Leyland to build small trucks and other light commercial vehicles in India gives them an opportunity to enter a market that in recent years has been dominated by its competitors, Toyota and Honda. This venture will produce at least 100,000 vehicles annually for sale in India and for export, as it will facilitate the construction of a plant near the southern Indian city of Chennai to manufacture and export compact cars to Europe. The deal with Ashok Leyland will broaden Nissan coverage in the Indian market in addition to providing new LCV (lightweight commercial vehicle) products for emerging markets which will sell for around $3,000. 00. Ashok Leyland’s strengths in large and mid-sized trucks combined with Nissan’s strength in smaller vehicles creates a positive synergy (Ibid). According to Mr. Ghosn, partnering globally is an opportunity and the Chinese market is no exception. China is Nissan’s third largest single market, after North America and Japan. Vehicle production has grown over the past ten years. However, the major source of growth has been the production of passenger cars (The Business Review, pg. 7). Passenger car production has doubled in the past ten years. This shift is in response to a change in market conditions and in a desire for Chinese manufacturers to enter the global auto passenger car market. Consumer demand is also increasing and in order to satisfy this demand, auto production has been increasing. The demand for autos is expected to continue (Ibid). According to the Wall Street Journal, the car craze in China has just begun. There are two factors that create possible opportunities for Nissan: 1) the country has the world’s largest population and as incomes rise, so will the hopes of buying an auto some day. 2) the market may grow to 8 million vehicle sales annually by 2010. Nissan’s new line of cars in China will be designed and engineered in Japan, based on a common â€Å"B† platform shared with Renault that centers on smaller engines. Annual sales of the entire family of cars are expected to reach 200,000 units globally and will be launched in other markets over the next couple of years (Financial Times, pg. ). However, the threat of inadequate roads and the government’s changes in regulating how autos are purchased will make the costs unpredictable. On a financial scale, the banks are under pressure to control credit, so auto loans may not be easy to acquire. North America accounts for nearly 40% of Nissan’s global sales, and in each of the past years sales have exce eded those in Japan, with the gap widening each year. Nissan is spending several billion dollars on new models, and the U. S. assembly plant in Canton, MS is aimed at maintaining momentum (Ward’s Auto World, pg. 1). The most significant automotive development in North America is continuing growth in the luxury segment and the increasing popularity of cross/utility vehicles. Nissan is on track to rebuild its image and regain brand value. In the past, customer satisfaction was good, but the model lineup was limited. Now, with the Q45, M45, G35 sedan and coupe and the FX models, the market has begun to recognize that Infiniti provides a range of real luxury models (Ibid). According to Bloomberg, Honda Motor Co. and Nissan Motor Co. led Asian automakers’ U. S. sales gains in September as Toyota Motor Corp. posted a third straight decline. Accord helped boost sales by 9. 4 percent. Toyota’s 4. 4 percent drop marked the first time since 1995 that Japan’s largest automaker logged three consecutive months of lower U. S. sales. Sales of the five year-old Corolla model, Toyota’s second-most popular in the U. S. , dropped 8. 5 percent and demand for the company’s light trucks declined amid rising gasoline prices. Industrywide U. S. sales fell for a fourth consecutive month, by 2. 9 percent to 1. 31 million light vehicles (Bloomberg. com, pgs. 1-3). Toyota’s old models like the Corolla are dragging down while Honda and Nissan have brand-new models. Nissan reported a 6. 7 percent increase in sales (Ibid). Nissan, sixth in the U. S. , sold 94,269 vehicles, helped by higher demand for midsize Altima and Versa compact cars. Nissan’s market share edged up 0. 7 percentage point to 7. 2 percent. The Japanese are becoming more aggressive in terms of incentives and pricing, which makes them more competitive against South Korea’s largest automaker. The company faces tough competition from Japanese and Korean auto makers like Toyota, Honda and Mitsubishi, which are rapidly gaining ground in the European markets. Asian manufacturers are continuing to fortify their position in the crucial North American and European market. It can also expect stiff competition from Toyota and BMW (Ibid). Nissan believes that growing the business means introducing new products and has created the Nissan Revival Plan to realign their cost structure. Significant amounts of money are funneled back into product development, mostly going towards the North American market. This means there are opportunities for new innovations that will bring the company in line with a mix of vehicles that are currently on the road. Its R&D costs in FY 2006/2007 stood at JFY 464,839 million, an increase of 3. 9% when compared to JFY 447,582 million in FY 2005/2006. The company increased its investment on R&D activities to launch a host of new products throughout the year (Ibid). In 2007, Nissan launched a new version of its minicar, namely, Pino E, which is a 2WD model and equipped with a three-speed automotive transmission. It is claimed to offer a fuel economy of 21. 0 km/1. Furthermore, the model is considered safe and environmentally friendly, as it features anti-lock braking system (ABS), brake assist (BA) and electronic braking force distribution (EBD) systems. It is low emitting, complying with the 2005 emissions regulations in Japan. In March 2007, the company also developed a new engine technology that helps balance between responsiveness and fuel efficiency, high power and low emissions (Ibid). Today, Nissan stands behind its offerings; that fundamentals of the business are strong, products are attractive to customers, and the company is poised for sustained, profitable growth. Environmental Concerns In researching the issues of automakers in regards to the environment, many nations as stated in The Wall Street Journal, are concerned about climate change and energy security. One of the most important issues all automakers are faced with on a global scale is the reduction of emissions, more specifically carbon dioxide or CO2. Concerns for the future in the minds of the majority are setting new goals for automakers of vehicles with internal combustion engines to become more efficient if they are to remain profitable or even in existence, which is further backed by a global treaty known as the Kyoto protocol (Wall Street Journal). In the protocol’s drafting of new rules they are intended to cap emissions of CO2, the gas widely blamed for global warming can potentially pose a major threat. According to scientists, it is reported that the rise in the earth’s average atmospheric temperature is largely due to this major contributor CO2 which will bring changes to the global environment, and therefore affect our daily lives (Ibid). According to the Wall Street Journal, a debate is raging in the US over how much time automakers actually need to boost fuel economy, and whether setting stringent targets will compromise safety by encouraging car makers to use lighter materials. Additionally, the US has not adopted the Kyota protocol and is under less pressure to reduce CO2 emissions as they are in Europe. Therefore, Nissan’s global prominence puts the auto manufacturer in an â€Å"opportunity† position by making concentrated efforts in advanced technology to reduce carbon dioxide emissions at every stage of the vehicles life cycle and their corporate activities, from manufacturing and transportation to use of Nissan’s vehicles by its consumers. Nissan, currently the third largest automaker out of Japan has opportunity to grow stronger from the threats of one and two automakers Toyota and Honda respectively, who lead the market in alternative fuel development (Wall Street Journal). According to Nissan’s Green Program, it is Nissan’s view that internal combustion engines will continue to be the main power source of vehicles globally in the years ahead. Therefore, Nissan therefore takes a stance of reducing CO2 emissions through the development and widespread adoption of advanced technologies for improving the fuel economy of gasoline engine vehicles. Currently in the works for Nissan is the development of cleaner diesel engine vehicles that run on biofuels made from plants and other reusable sources (Ibid). Nissan estimates that over half of the vehicles they sell by 2050 will need to be electrically powered if they are to reach their long term goal of reducing CO2 emissions. Nissan’s threat has been its major competitors in developing hybrid electric vehicles, fuel cell vehicles and electrical vehicles. Other companies such as Toyota are setting the bar in alternative fuel sources which makes them a profitable industry leader with the obvious threats of gas prices that change virtually on a daily basis (Ibid). Nissan History and Innovation Nissan Motors’ history dates back to the 1930s when Jidosha Seizo Co Ltd was established in 1933 in Yokohoma City, Japan. Its beginnings as a munitions company was short lived when the company was renamed to Nissan Heavy Industry Co Ltd and introduced the first Datsun, manufactured after World War II. After the company began exporting the cars to the US in 1958, it gained popularity due to its small size and high fuel efficiency. Subsequently, in 1980, Nissan Motor established Nissan Motor Manufacturing Corp. USA to strengthen its market potential in North America (ABI/INFORM Global pg. 1). Today, Nissan supplies a widespread customer base classified across regions, namely, Japan, the US, Asia, Europe and General Overseas Market, which includes Mexico and Canada. This market includes 150 dealers and 2,500 outlets worldwide (Ibid). This is the age of globalization and the worldwide interdependence of resource supplies, product markets, and business competition. Nissan has succeeded in meeting its challenges due to its focus in valuing diversity both in its workforce and through understanding customer needs. This is evident in how the company plans ahead and is always looking for new ways to improve current performance. For instance, the company learned from past mistakes; failure to recognize changing customer focus in non-growth sectors, and being competitively focused rather than market focused. Also, finding the right people and the right plan to maximize growth is key (Nissan News, pg. 8). Shiro Nakamura Nissan’s automotive designer is known as â€Å"The man behind the Nisan Look† and has developed some up-to-date, eye-catching designs that have no resemblance to the old models, and the company is optimistic that sales will increase once the current plan to launch 28 new cars during fiscal year 2008. Most of the changes are defined to the upper body and adjusted to make it more like the Altima (Business Week, pg. 1). Nissan’s innovations stem from producing a product that their customers want. Their philosophy is that investing in a product that will bring value and satisfaction to its customers will build loyalty as well as expand that market base. Nissan’s models include Maxima and Sentra cars, Altima and upscale sedans, Frontier pickups, the 350Z sports car, and Xterra and Pathfinder SUVs. In 1999 French automaker Renault took a 37% stake in Nissan, and installed president and CEO Carlos Ghosn (nicknamed â€Å"Le Cost Killer† based on his talent for turning red ink black) who has since returned the company to profitability. Renault now owns almost 45% of Nissan. According to Hoovers, Nissan fiscal year end sales in March were in millions, $80,583. 7. Net income in millions was $4,427. 8, and 1 year net income growth was 7. 0%. Their top competitors were General Motors, Honda, and Toyota (Hoovers. com, pg. -2) Generation â€Å"X† consumers can identify with the sports world, ESPN’s X Games. Games showcase the world’s most dangerous events. The â€Å"X† generation is also playing a big role in the fashion world, thus the automotive industry has been one of the leaders driving the â€Å"X† growing trend. Jaguar’s Web site prominently features a glowing X to promote the new â€Å"Jaguar X-Type: a car for a new generationâ⠂¬ . And Nissan has scored big with the model Nissan Xterra. This trend is enabling Nissan to tap into a pool of younger car buyers. The vehicle has attracted many new buyers, some of which have never purchased a Nissan before. The Xterra is aimed to attract 25 to 35 year old drivers. Marketing tactics fill viewers with scenes of athletes doing extreme outdoor exercise, and pushing their SUVs to the extreme. Polls cited that men were most affected with the advertisement than women. 13% to 9%. According to the Gallop polls, the ads scored highest among those 30 to 39 years old, which is right where the company was trying to segment. The 25 to 35 year old target market (USA Today, pg. 2-3). Baby Boomers on the other hand are most attracted to the Nissan Murano, or Nissan Bevel. Nissan’s long term vision for 2015 is that future vehicles will save lives by installing a series of sensors that can detect sobriety of a driver and can immobilize the car. Other features include detecting operational changes, such as drifting out of a lane, at which time the system navigation system alerts the driver with voice message alerts and the seat belt is tightened. Nissan is currently testing an on-board breathalyzer and road sensors to help reduce accidents. Other plans to develop an Intelligent Transport System Project and road sensors will help reduce accidents (Nissan. com, pg. 1-2) The company understands the importance of agility in a dynamic 21st century market and is continuously reinventing itself to stay ahead of the competition. Sometimes, this means taking risks. Most recently, the company made an announcement that it was moving its headquarters from California to Tennessee. The new facility will accommodate 1300 plus employees and favorable for business, not to mention contributing to the infrastructure and supporting the community with more jobs. It’s inevitable that there could be some unforeseeable threats perhaps with current labor force. Some issues could be that they are not in agreement with the transfer and choose to leave the company, thus the need for new hires. Other potential threats are the risk of new competitors in the area, and developing a new sense for the new market. The California population may not have the same tastes and likes as the Tennessee population, thus Nissan could expend additional resources to substitute products and services (Tennessean. om, pg. 1-4). A strategy for the future that Nissan could consider would be to offer a motorcycle product. Exploring and pursuing this opportunity would allow them to remain competitive and also to offer products to meet different needs. Honda, BMW, and Suzuki, all of whom offer cars, trucks, and sport utility vehicles, Nissan too should visit the idea of offering a motorcycle. Over the years Nissan has developed quality products that are dependable, hi ghly functional and desirable; this being an advantage for Nissan. Along with remaining competitive, the high price of fuel recently would make a Nissan motorcycle more appealing. The motorcycle would alleviate fuel expenses and consumption. The Nissan motorcycle would also be appealing in geographic locations such as Japan, China and major cities in the United States that do not have the space on roads for larger vehicles. Nissan plans to offer a concept vehicle that resembles a car and a motorcycle. This vehicle is called â€Å"Urge† and offers state of the art gaming systems that allow the driver to use the gas and brake pedals to play. When considering the pricing of a Nissan motorcycle and remaining competitive, Nissan should consider that Honda and Suzuki offer motorcycles at reasonably affordable prices. Suzuki offers several types of motorcycles to include cruisers, motocross, and sport bikes all at reasonable prices ranging from $6,000. 00 to under $10,000. Honda also offers cruisers, motocross, and sport bikes. Honda motorcycles range from $3,000 to $13,000. In order to lure prospective buyers into purchasing a Nissan motorcycle, Nissan should strive to offer its motorcycles at reasonable prices, similar to Suzuki and Honda. The price range for motorcycles made by BMW is slightly higher starting at $8,000 to $15,000. BMW has offered a motorcycle since 1923. Its tenure along with the fact that consumers have learned to trust the German made motorcycle are what keep BMW competitive. Offering reasonably priced and desirable styles similar to BMW, Honda and Suzuki is a great opportunity that has not been approached by Nissan. The cruiser styles offered by Honda, Suzuki and BMW resemble that of a Harley –Davidson motorcycle without the high cost. The market for Nissan motorcycles is positive with the increasing cost of fuel and the ages of future drivers. Most of the baby boomer generation have become accustomed to the quality of Nissan vehicles and would be approaching retirement age in the next few years. Nissan’s release of motorcycles would segment the soon retired baby boomers as a fun and recreational of transportation. The Nissan motorcycle would also segment the new drivers of today which in a few years will be the young generation to market to. Nissan would have to be conscious of expenses in marketing and production of the motorcycle, a product never offered and could use the business model already established by its competitors offering both motorcycles and automobiles in the industry. According to Analysts, the economy is not faltering and people are still hopeful for the future. It is a race to the finish line, and who ever gets there first wins. It will be interesting to see how automobile manufacturers will implement new strategies (Economy Today, pg. 1) Nissan Technologies –Past and Future New technologies were as important to Nissan’s past as they are to Nissan’s future. Nissan has always addressed environmental issues, including the development of clean power sources for vehicles and recycling of natural resources. Nissan has been able to release one new model after another with fuel-efficient direct-injection gasoline engines and direct-injection diesel engines since 1997. This has led to the expanding application of the Hyper CVT (continuously variable transmission) , the Extroid CVT, the Tino Hybrid and the two-seater Hypermini electric vehicle in the early part of 2000 for efficient fuel economy (Nissan global. om). Nissan’s history goes back to an automobile factory started by Masujiro Hashimoto in 1911 called the Kwaishinsha Co. In 1914, a box-type small passenger car was completed and in the following year the car made its debut on the market under the name of Dat Car. Another predecessor of Nissan was Jitsuyo Jidosha Co. , Ltd. , which im ported machine tools and components from the U. S. , and was one of the most modern automobile factories of its time. Kwaishinsha Co. and Jitsuyo Jidohsa Co. merged in 1926 to form Dat Jidosha Seizo Co. , and two years later to the establishment of Nissan Motor Co. Ibid). In preparation for post war capital investment in Japan, Nissan developed two state-of-the-art manufacturing facilities leading to the advancement of motorization and increased traffic accidents; and contributed to the problem of air pollution. Nissan developed its first Experimental Safety Vehicle (ESV) in 1971 and over the years created a reputation for excellence in engineering and advanced technology. Nissan has developed weight-reducing materials, engine management systems for controlling combustion, and using CAD/CAM systems and industrial robots (Ibid). Recently, Nissan has also been localizing R;D operations, which has now advanced decision-making through the regional headquarters in North America and Europe. Nissan’s local operations in their respective regions oversee product development, manufacturing, procurement, fund-raising and mutual complementation of parts between companies (Ibid). Nissan’s Vision Nissan is developing corporate activities centered on automobile manufacturing based on their vision of â€Å"enriching people’s lives. In order for cars, which provide mobility, to truly become reliable partners for our customers, a number of issues including global environmental issues, traffic accidents and congestion problems must be tackled as part of a long-term vision (Nissan global. com). The global automotive industry is entering an era that will change almost every facet of the car in the future to come. Nissan’s global vision includes the pursuit of environmentally sustainable technologies creating one of the greatest engineering competitions in history that has the potential to deliver significant benefits to humanity (Ibid). To realize our vision, Nissan is developing technologies based on a framework called the â€Å"Orchard† concept. † This concept allows Nissan to embrace technologies in a comprehensive manner (Nissan global. com). In order to create a distinct value in order for customers to choose their cars, Nissan is likening its approach to the management of a fruit orchard in which â€Å"fruit† is planted and raised. The process has three phases, one – the Harvest Plan, two – Seeding and Growth and three – Soil Enrichment. The Harvest Plan takes into account social needs and market demands for the commercialization of technologies and the timing of releases. Seeding and Growth will implement strategies for the realization of the Harvest Plan and to formulate development of schemes. Lastly, Soil Enrichment will create value for the long term by researching reliability improvement and analysis technologies (Ibid). Some of the proposed solutions are more efficient fuel-cells for electric cars, bio-fuels, advanced diesel fuels or combinations of these solutions. However, the most effective solutions will not be decided by engineers. It will be decided by consumer demand, which is the most powerful force for global environmental progress. Every new car buyer in every country gets a vote by exercising their right to choose, thereby dictating both the pace of future change and its direction (Ibid). Nissan’s vision is to invest massively in R&D in pursuit of new technologies. This has not always been the case. Due to perilous financial decisions, in 1999 Nissan could not afford to invest in the core of its brand identity – technological innovation. Today, Nissan’s R&D budget is much healthier than the level of 1999 due to significantly increased efficiency of their R&D activities. This has led to an environmental blueprint known as Nissan’s â€Å"Green Program 2010†. Also taking advantage of the alliance with it’s parent company, Renault, Nissan is able to focus on specific promising technologies – such as advanced lithium-ion batteries and other areas, such as clean diesels. Nissan’s vision includes the determination to be the leader in environmental progress. It is Nissan’s belief that motoring can be both green and fun allowing consumers to expect new technologies that will enhance dynamic performance (Ibid). Some of the latest technologies being embraced by Nissan are the X-Trail Fuel Cell Vehicle, Ultra-low Friction Diamond-like Carbon (DLC), the Super Motor, and the Compact Lithium-ion Battery. Nissan continues to raise the practicality of FCVs, which are being developed as the most eco-friendly vehicles. The X-Trail FCV provides increased cruising range. (Nissan global. com). The FCV also provides improved acceleration. The new model features a Nissan-developed fuel cell stack that is more efficient than the previous stack resulting in maximum power of 90 kw compared with 63 kw in the 2003 model. Ultra-low Friction Diamond-like Carbon (DLC) is Nano-technology based on ultra-low friction technology. Nissan has substantially reduced friction between engine parts by developing the first technology in the world to combine a hydrogen-free diamond-like carbon (DLC) coating with special oil. Energy is lost due to friction that arises between the hundreds of parts that comprise an engine. This ultra-low friction technology uses nanotechnology in order to reduce friction by approximately 40% compared to conventional engines. The DLC works by use of a hydrogen-free DLC coating, improves binding with the engine oil, and results in the formation of a firm ultra-low friction film when special oil additives are added. It is now possible to reduce overall engine friction by 25% (Ibid). The Super Motor and Compact Batteries Nissan has independently developed the Super Motor based on an all-new concept. One motor provides output through two shafts, enabling it to function as both a motor and a generator. This innovative technology has a wide range of potential applications (Nissan global. com). The Super Motor can dramatically reduce the size and improve the efficiency of the drive unit compared with the use of two conventional motors. Independent control of the power obtained from the two shafts. The Super Motor has rotors positioned on both the inside and outside of one stator, enabling power to be delivered through two shafts by use of a new technology to apply compound current to the Stator coils (Nissan global. com). Nissan has succeeded in independently developing a laminated lithium-ion cell that displays an exceptionally high output characteristic. This cell is the result of many years of lithium-ion battery research that began in 1992. The laminated cell is featured from the 2003 model X-TRAIL FCV (Nissan global. com). The laminated cell design and high-power electrode technology improve power output by 1. 5 times and reduce the volume by more than half compared with the conventional cylindrical cell. The thin cell construction also enables a thin module design for a substantial improvement in battery ooling efficiency. Locating the battery under the floor achieves compact and highly efficient vehicle packaging, including a low, flat floor, among other advantages. Compared with the cylindrical cell, the laminated cell has fewer components and is extremely compact and lightweight. Moreover, Nissan has succeeded in achieving higher power output through material improvements made to the lithium manganate positive electrode and the carbon negative electrode (Nissan global. com). Executive Summary Like any other automobile manufacturer, to stay competitive in today’s world markets, one must consistently innovate and stay one step ahead of the competition. In the past, automobile manufacturers have been first in presenting more fuel efficient vehicles, increased gasoline mileage rating through body redesign, and have introduced new safety features for the yearning public marketplace. Nissan current project in India is to try to regain market share from its competitors Toyota and Honda by creating Light Commercial Vehicles (LCV’s) which are small cars that can be sold for around $3,000. 00. This innovative idea can create a brand new market segment of customers who could not, up until this point, afford to purchase and operate a vehicle. Along with being fuel efficient and maintaining competitive, Nissan’s offering a motorcycle would be an added strategy to pursue. Dealing with the myriad of different cultures across the globe is also a major focus of Nissan’s Chief Operating Office Carlos Ghosn who realizes that the creation of multi-cultural company can flourish and grow through exploiting it synergies, believes that feeding off each other’s strengths, and minimizing its weaknesses are key. Automobile manufacturers like Nissan can never be â€Å"one size fits all†, but they can certainly try to understand and adapt to different cultures to maximize desired commonalities and maximize profits. These days, partnering globally cannot be realized without including China. China is Nissan’s third largest single market (only after North America and Japan). Although vehicle production has significantly increased over the last ten years, passenger car production has actually doubled in the last ten years due to market conditions and Chinese automobile manufacturers ntering the car market. China has a great position in the future manufacturing of automobiles because of increased income and an already over-inflated population. However, threats of inadequate roadways, governmental regulations on how automobiles are purchased, and pressure on Chinese banks to â€Å"control credit† may temporarily slow the process. North America has captured 40% of Nissan’s global sales and has caused an ever-widening gap with Japanese sales which has been increasing each year. Nissan has recently spent several billion dollars on new models and a new U. S. ssembly plant in Mississippi to ensure that this momentum continues. Nissan believes that growing this business means introducing new products while realigning cost structures. Large sums of money are being placed back into product development – most geared towards the North America market. Although the United States never signed onto the popular Kyoto protocol which planned to significantly reduce the amount of carbon emissions in the world, many other nations did because of the ever growing concerns of climate change on a global scale which many believe poses a worldwide threat. Nissan, however, has proactively realized this concern and has taken advantage of this opportunity by making concentrated efforts in advancing technology that reduces carbon dioxide emissions â€Å"at every stage† of the vehicle’s life cycle. Nissan is vigorously working on the creation of cleaner diesel engines that run on biofuels made from plants and other renewable sources. The threat to Nissan has been its competitors who are developing hybrid electric vehicles and fuel cell vehicles. Toyota has lead this aspect of the automobile industry, and has been setting the bar in alternative fuel sources making them the very green and very profitable company that envisions change in the industry. Nissan began exporting cars to the U. S in 1958 and gained popularity because of its small size and great fuel efficiency. Today, Nissan has developed new eye-catching designs that do not resemble older models. Nissan is very optimistic that sales will increase significant once these 28 new models are launched during the 2008 year. But the look of new models alone isn’t all Nissan is after. Safety features such as installing a series of sensors that can detect alcohol levels in the driver will alert the car to slow and/or become immobilized. Corporate agility is also a key factor as is shown when Nissan moved its headquarters from California to Tennessee, which accommodates over 1300 employees, supporting the community with more jobs, and reducing significant overhead. New technologies developed at Nissan have addressed environmental issues including clean power sources for its vehicles and recycling of natural resources. Nissan has envisioned that the future of their company will greater enrich peoples lives through global environment issues, and reducing traffic accident and congestion problems. Some of Nissan’s proposals include more efficient fuel-cells for electric vehicles, bio-fuels, and advanced diesel fuels. The most important facet that Nissan realizes is that effective solutions will be decided by consumer demand, not engineers. Nissan has constructed a â€Å"Green Program 2010† which has become their environmental blueprint for success in the industry.