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From a purely business perspective, Nissan has a winning formula. They are notorious for providing cars that stretch your dollar further. They are able to do this through operational optimization.
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From a purely business perspective, Nissan has a winning formula. They are notorious for providing cars that stretch your dollar further. They are able to do this through operational optimization. If you notice, there is little diversification in many of their parts. Example: They only produce a limited number of engined which are versatile and can be tuned accordingly depending on the model. Their computer interface is also diverse and used in many models including the Infiniti line. This limits the number of production lines and subsequently minimizes inefficiency. The Germans also do this well. If you look at a company that hasn't done this well in the past (i.e. GM), you can spot the obvious differences:
- they needed a different production line for every single model of car - they had too many redundant lines producing identical vehicles with different badges - etc. Furthermore, Nissan has a great marketing strategy, appealing to buyers of all ages. They also market Infiniti very well. I also like how they reduce canibalization by providing different incentives for buyers to buy a nissan vs. infiniti or vice versa. So, all-in-all, they do a solid job of managing their company.
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