Phone: 8920884581 Email: rblacademy2009@gmail.com
  • Blog
RBL AcademyRBL Academy
  • Home
  • About Us
  • Online / Home Tuition
    • Class wise Home Tutor & Tuition
    • Subject wise Home Tutor & Tuition
    • Online Tutor & Tuition
  • Coaching
        • Class 1 to 12
        • Class 11 & 12 Commerce
        • BBA, B.Com & MBA
        • BCA & MCA
        • B.E. & B.Tech
        • CA, CS & CMA
        • Crash Course
        • CUET Coaching
        • Project Report & Assignment Solutions
        • IBPS Bank PO / M.T.
        • IBPS RRB Officer
        • IBPS Clerk
        • IBPS Specialist Officer
        • SSC CGL
        • SSC CHSL
  • Study Material
        • ADBS
          • Analysis and Design of Business System notes
        • BFSI
          • BFSI notes
        • Business Analytics
          • Business Analytics notes
        • BCP
          • BCP notes
        • Business Communication
          • Business Communication notes
        • Business Law
          • Business Law Notes
        • BPSM
          • Business Policy & Strategic Management notes
        • Business Statistics
          • Business Statistics notes
        • Business Studies
          • Business Studies notes
        • Class 11 Business Studies
          • Class 11 Business Studies notes
        • Class 12 Accounts
          • Accounting For Partnership
          • Goodwill- Nature and Valuation
          • Change in Profit Sharing Ratio
          • Admission Of Partner
          • Accounting for Share Capital
          • Accounting For Issue of Debentures
          • Accounting for Redemption of Debenture
          • Financial Accounting Ratios
          • AS- 3 Cash Flow Statement
        • Competency Mapping
          • Competency Mapping notes
        • Corporate Finance
          • Advance Corporate Finance notes & Solutions
        • Case Study Solution
          • Adidas: A Strategic Audit
          • Adidas Marketing Analysis
          • ALPHABET’S GOOGLE Strategy
          • Amazon as an Employer
          • Amazon’s Kirananow
          • Branded Lifestyle Holding LTD
          • Bullwhip Effect in Dreaded Supply Chain
          • Calveta Dining Service Inc.
          • Federal Bureau of Investigation
          • GCMMF – Amul Supply Chain
          • Google Compensation Strategy
          • Grofer’s Supply Chain
          • Hero Honda Motors Ltd.
          • Industrial Relation in Airline Industry
          • Lemon Tree Hotels: Opening Door
          • McDonald’s Corporation
          • NISSAN’S E-VEHICLE STRATEGY IN 2011
          • Organization and Strategy at Millennium
          • Organisational Culture, Design & Structure
          • Sherwood Forest Center Parcs village
          • QuickMedx Inc.
        • Corporate Governance
          • Business Ethics & Corporate Governance notes
        • Corporate Tax Planning
          • Corporate Tax Planning Notes
        • Cost Accounting
          • Cost Accounting notes
        • CCM
          • Cross Culture Management notes
        • Economics
          • Micro & Macro Economics notes
        • Financial Accounting
          • Financial Accounting notes
        • Financial Derivatives
          • Financial Derivatives notes
        • Financial Modelling
          • Financial Modelling using Excel
        • FRM
          • FRM notes
        • Financial Reporting
          • Financial Reporting notes
        • Financial Management
          • Time Value of Money
          • Leverage Analysis
          • Capital Structure Design
          • Capital Structure Theories
          • EBIT - EPS Analysis
          • Cost of Capital
          • Cash Flow Estimation in C.B.
          • Capital Budgeting
          • Amity University Financial management notes
          • Financial management using MS Excel
          • Other FM notes
        • HR analytics
          • HR analytics notes
        • HRM
          • Motivation Theories, Strategies & Role
        • Income Tax
          • Income Tax notes
        • Indian Foreign Trade
          • IFT notes
        • Industrial Relation
          • Industrial Relation notes
        • IFM
          • International Fin, Management notes
        • International Marketing
          • International Marketing notes
        • Management Accounting
          • Management Accounting notes
        • Manufacturing Process
          • manufacturing Process notes
        • Marketing Management
          • Marketing Management notes
        • Merger & Acquisition
          • Merger & Acquisition notes
        • Managerial Economics
          • Micro / Managerial Economics notes
        • Operation Management
          • Operation Management notes
        • Operation Research
          • Operation Research notes
        • OCD
          • Organisational Change & Development notes
        • Project Management
          • Project Management notes
        • Project Report
          • Cross Cultural Management on Netherlands
          • MBA HRIS Project Report
        • Public Policy
          • Public Policy notes
        • Research Methodology
          • Business Research Methodology
        • SAPM / IM
          • SAPM / Investment Management notes
        • SHRM
          • SHRM notes
        • Trading in Fin. Market
          • Trading in Financial Market notes
        • Competency Mapping
          • Competency Mapping notes
  • Contact
  • Gallery
  • Day Care

Nissan's EV case solution

To share your thoughts on the case ‘Nissan’s electric vehicle strategy in 2011: Leading the way towards zero-emission’, which discusses the decision by Nissan, the Japanese car manufacturer, to develop and sell a range of zero-emission vehicles (ZEVs).All students should contribute by posting your thoughts such as what went well for you on case? What did not go well or what did you find difficult? What will you try to do differently? Join the discussion, and add some of your own key learning points. Things that go well: 1. It had a first mover advantage in launching a global, mass market, affordable EV that had the same capabilities as an ICE car. 2. Costs of raw materials and commoditized parts were expected to remain relatively fixed over time. 3. NEC’s battery business was relatively small, but they knew how to make specialty electrodes that were critical for the EV battery. Nissan’s battery business unit itself employed about 50 people. 4. Nissan could control the number of batteries produced to ensure it would have sufficient supply for its EV line. 5. Through simultaneous engineering, they were able to coordinate and organize new ideas, which led to a quicker time to market and lower costs. With Nissan and NEC engineers working together, there were daily discussions about what Nissan needed for the LEAF, which eliminated bureaucratic layers and delays. 6. The collaboration also meant that at any moment Nissan could incorporate the newest battery technology into its cars. In addition, Nissan and Renault could start with the car design and specify how the battery must be, as opposed to the other way around. There also were advantages for NEC. 7. The Renault-Nissan Alliance wanted to tap into that market so that in addition to self-supplying batteries, it could sell batteries to other companies. 8. The Alliance expected to produce that many EVs annually by 2015, half by Renault and half by Nissan. These would all use manganese lithium-ion batteries, which were high in durability. 9. Although Nissan could not benchmark BYD’s batteries, technologically they were notably inferior to the batteries being developed in Japan and South Korea. 10. The Alliance had two distinct business models for their EVs. The first was to sell the car and the battery as one unit, so the buyer would own both. A second model involved selling the electric car but leasing the battery. Customers would pay a monthly lease fee of varying cost, depending on the region, with the ability to change the battery if there were problems. In some regions, most notably Israel, customers also could take advantage of Renault’s quick drop system; they could go to a special station and in less than five minutes have a battery that was running out of charge replaced with a charged battery. Thus Renault took on the uncertainty about the life of the battery so customers did not have to worry about it. 11. Joint venture 4 R would reduce the initial cost of the battery and help society accept the electric vehicle. 12. Nissan was developing both normal and quick charge systems and was working to standardize as much as possible in order to reduce the cost. The company had begun installing both regular and quick charging units around the world. Nissan also partnered with third parties all over the world to build the EV infrastructure. 13. In March 2011, Renault and Better Place opened the first European Better Place center in Copenhagen, where customers could test drive and order a Renault Fluence “Prime Time” ZEV sedan. 14. Nissan also joined forces with U.S. company ECOtality North America (formerly known as eTec) to build 12,750 charging stations and deploy 5,000 LEAFs in five U.S. markets: the states of Tennessee and Oregon, the cities of San Diego and Seattle, and the Phoenix/Tucson region. 15. The Nissan plant in Oppama modified its assembly line to produce normal internal combustion engine vehicles and EVs, making manufacturing capability quite flexible. Given Nissan’s capability to allow various type of vehicles to be produced in the same production line, there was no need to create a dedicated line for EVs, allowing the company to reduce investment costs significantly. 16. In addition to sharing technological information, Renault and Nissan could communicate about distinct business models for each region, which translated to significant synergies. Things that did not go well or found difficult 1. “Range anxiety” – the fear that the battery would run out and EV owners would be stranded on the road — had come into the lexicon of the debate pitting the EV against PHEV and ICE. 2. The people do not yet understand the electric car and the potential of the electric car. 3. Questions and concerns about the LEAF were mostly centered on the availability of charging stations, dealer locations, and price. 4. The battery was by far the most expensive component of the car. 5. Renault planned to buy some batteries from South Korea-based LG Chem. 6. The price AESC charged Renault for batteries were high. Renault wanted to buy the batteries as cheaply as possible, but Nissan wanted to sell the batteries at a high price. However, Renault planned to buy part of its batteries from LG Chem, which kept AESC’s prices competitive. 7. For battery development, Nissan was snatching up as many chemical engineers as possible. Chemical engineering had not been very popular among young Japanese, who saw a career path only to chemical factories. Key Learning Points: 1. Battery cost in EV is very critical and reduction in its cost is utmost priority for the company. 2. Providing necessary infrastructure for EVs in market is second most important consideration to be taken care of while convincing customers to go for EVs. 3. Pricing is an utmost concern for the customers even after tax relief on EVs. 4.The first mover advantage can help Nissan and Renault to establish their brand in EV market if they were able to produce cost effective and efficient cars with necessary infrastructure facilities in first go. 5. Battery market can also help Nissan to increase their profit if they will be able to achieve economies of scale and get ways to reuse used batteries. 6. Looking into environmental concern, people will go for EVs but electricity is also generated from coal. Equilibrium with regard carbon is to be maintained which proves low carbon emission as compared to IEC. Q3. Your task is to analyse Nissan’s external environment and offer comments upon whether or not the group is as optimistic as Nissan that ZEVs will make up 10% of the global car fleet by 2021. As a group you should, briefly, make use of relevant BB835 concepts such as: The PESTLE framework Porter’s Five Forces framework PESTLE FRAMEWORK POLITICAL 1. Customers will move toward EVs as Oil prices and availability were continuously volatile, affecting consumers at the gas pump influencing political decisions and even prompting military action. 2. Various governments offered tax incentives and rebates to EV and PHEV buyers, and some offered grants and loans to EV and PHEV manufacturers and battery manufacturers. 3. Tax incentives for buying electric vehicles were in place only for a few years ECONOMICAL 1. Federal tax credit by government on EVs reduced the price of Leaf in USA. Many states had additional rebates for electric vehicles (EVs). 2. Nissan’s partnership with Renault allowed for significant economies of scale. 3. The Alliance’s goal was to sell a cumulative 1.5 million EVs by 2016. 4. During the oil price spikes in 2008, there was evidence that high gasoline prices affected drivers’ habits. Many consumers began to change their buying habits, switching from sport utility vehicles (SUVs) to more fuel efficient cars and motorcycles. SUV sales dropped precipitously in 2008. As oil prices dropped in 2009 and 2010, U.S. drivers began reverting back to buying less efficient cars. SOCIAL 1. Nissan and Renault each planned to produce four EV models: a family sedan, a small city car, a light commercial vehicle, and a luxury car. 2. Americans had “range anxiety” and were afraid of getting stuck on the road after 100 miles because there was no back-up engine in an all-electric vehicle. 3. Buyers of EVs and HEVs tended to fall into a very specific category. TECHNOLOGICAL 1. The two companies shared technical learning and experiences about electric vehicles (EVs), but Renault designed and developed EVs with some different technologies for the motor and a different battery recharging method. The two companies also had different EV business models. 2. They have multiple technical options and business models so it could quickly adapt to the market demands of the future. LEGAL 1. To combat climate change and pollution, governments around the world began enacting emissions regulations. 2. New federal U.S. and global mpg mandates would act to accelerate improvements in ICE vehicles. 3. Nissan’s development of electric vehicle batteries was spurred on by new California regulations that required automakers to have a very small percentage of electric vehicles in the market, which for Nissan translated to about 100 or 200 EVs. ENVIRONMENTAL 1. Nissan want to change the face of the industry by making all-electric vehicles an affordable, mass market reality. 2. Transportation accounted for one-third of the country’s carbon emissions and two-thirds of total emissions from petroleum in USA. 3. Air pollution was an enormous problem created by ICE vehicles, especially in emerging nations. 4. Although electric vehicles were emissions-free, there was still the question of carbon footprint. A large percentage of global electricity generation came from coal. Coal-powered plants were environmentally unfriendly, and coal was the largest source of global carbon emissions. 5. For EVs to reduce the world’s carbon footprint, electricity generation from renewable resources would have to keep pace with the production of EVs. Porter’s Five Forces framework 1. Threat of new entrants The top barriers to adoption of EVs were price, concerns about performance and range, and availability of charging stations. These factors reduce the entry of new companies into EV market in current situation..However auto companies will soon enter into EV market once they will be in a position to develop infrastructure for the same. Government is offering incentive to buyers in terms of tax incentive to promote use of EVs. 2. Threat of substitutes In the United States, the LEAF was often compared to General Motors’ Chevy Volt, which was a plug-in hybrid electric vehicle (PHEV) with an estimated retail price of about $41,000 ($33,500 with the federal tax incentive). EV makers also faced increased competition with ICE vehicles that were becoming more fuel-efficient, offering customers more choices. “Range anxiety” – the fear that the battery would run out and EV owners would be stranded on the road — had come into the lexicon of the debate pitting the EV against PHEV and ICE. 3. Bargaining power of suppliers The bottleneck for the EV was the battery supply, which Nissan is producing in joint venture with NEC. One of the main objectives for Nissan, and all EV makers, was reducing the cost and complexity of the battery as quickly as possible. Costs of raw materials and commoditized parts were expected to remain relatively fixed over time. These costs equaled about 25 percent of 2009 battery costs. 4. Bargaining power of customers New federal U.S. and global mpg mandates would act to accelerate improvements in ICE vehicles. A new competitive landscape also was opening up with the push for cheap, fuel-efficient cars (for less than $3,000), especially in emerging automotive markets. However price of Leaf was $32,780, and after the $7,500 federal tax credit the price dropped to $25,280 5. Competitive rivalry Competition that will come from the all-electric vehicles manufactured by Ford, Volkswagen, and Toyota, which had not come out yet, giving Nissan a lead in the EV market. These companies would be releasing EVs between late 2011 and 2014. Competition would then be on other features: external and internal design, acceleration, comfort, range reliability, charging, and IT interconnectivity. The only mass marketed PHEV was the Chevy Volt. Toyota had plans to offer a PHEV by 2012, but with a limited range of about 13 all-electric miles per charge. Right now, Nissan does not have direct competitive rivalry but substitute rivalry is present. The best known al
Case Study Solution

NISSAN’S E-VEHICLE STRATEGY IN 2011

NISSAN’S ELECTRIC VEHICLE STRATEGY IN 2011: LEADING THE WAY TOWARD ZERO-EMISSION case study Assignment, SWOT, VRIO, PESTEL, Five Force Framework and Recommendation for Nissan’s Electric Vehicle Strategy, Nissan’s E- Vehicle Case Study Solution

By admin, 3 yearsJune 15, 2022 ago

Contact Us-

RBL Academy

D-101, East Avenue Society

Sector 73, Noida

8920884581, 9910719395

  • Facebook
  • Twitter
  • Instagram
  • Pinterest
  • WordPress
  • Tumblr
  • Medium
Quick links
  • Online / Home Tuition
  • Coaching
  • Class 11 & 12 Commerce
  • BBA, B.Com & MBA
  • Project Report & Assignment
  • Crash Course
Like Us On Facebook
Facebook Pagelike Widget

  • Home
  • About Us
  • Online / Home Tuition
  • Coaching
  • Study Material
  • Contact
  • Gallery
  • Day Care
Hestia | Developed by ThemeIsle