Nissan is an automobile-manufacturing Japanese multinational company. Masujiro Hashimoto founded the automobile company in 1911 under the name of Kwaishinsha Motor Car Company. Today, we’ll discuss the PESTLE analysis of Nissan; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Nissan
Some of the main political factors in the Nissan PESTLE analysis are as follows;
I-Trade Policies
Nissan is a Japanese automobile multinational company. While running its business in the international market, the company needs the trade policies of different countries and regions like the US, EU, and others. They comprise of trade tariffs, import and export policies, taxation, and other regulatory requirements. Compliance with the trade policies of different countries would help the automobile brand to perform its operations smoothly.
II-Political Stability
The stable political and government environment plays a key role in the growth of its businesses and operations. For instance, the Brexit deal caused the automobile brand to shift its production and manufacturing facilities back to Japan. It is because when Britain gets out of the EU, then it requires the company to deal with various types of regulations and legal costs while importing materials from other European countries.
III-Diplomatic Relations
The type of political leadership that comes into power; would impact the government policies of different countries. The diplomatic relations of different countries with Japan are different depending on the political leadership. For instance, Japan has conflicted relations with China and is friendlier with the US and the EU, which impacts Nissan’s operations.
Economic Factors Affecting Nissan
Some of the main economic factors in the Nissan PESTLE analysis are as follows;
I-Economic Crisis
The global economy is going through an economic recession ever since the pandemic crisis. The worldwide lockdown and shutdown of businesses greatly impacted the automobile industry. It is because there were bans and restrictions on traveling and socializing. People and companies are still struggling to cover up the losses of the 2020 crisis.
II-Fuel Price
The fuel and oil price market is highly volatile and it keeps changing prices due to various political and economic factors. A small change and increase in fuel price would make the transport expensive. It makes customers choose public transport options, rather than driving their own vehicle.
III-Higher Production Cost
The cost of raw materials, logistics cost, rental, oil price, and labor cost have been increasing significantly for the past few years. Collectively, they all have increased the production cost of automobiles, and it has decreased the profitability and revenue of Nissan.
Social Factors Impacting Nissan
Some of the main social factors in the Nissan PESTEL analysis are as follows;
I-EV Trends
The consumer market has become highly cautious about nature and environmental sustainability. They prefer electric and hybrid automobiles that are environmentally sustainable have a lower carbon emission rate and are less damaging to the environment.
II-Safety Concern
Besides the automobile style and design preferences, the safety features of automobiles are the top priority of all customers. Nissan invests a significant amount of capital resources in research and development and testing technology to make their automobiles safe and sound to avoid any type of disruptions.
III-Public Transport and Ride Sharing
The interest of the consumer market is shifting towards ride-sharing and using public transport due to the growing environmental sustainability trends. For instance, if public transport is easily accessible in a particular country and geographical market, then people would use public transport; instead of buying their separate vehicles.
Technological Factors Affecting Nissan
Some of the main technological factors in the Nissan PESTEL analysis are as follows;
I-Electric Vehicles Technology
In order to keep up with the growing customer market, Nissan has invested a significant amount of capital resources in the development of electric vehicles. The automobile brand is increasing the production and sale of electric vehicles. It allows the company to decrease carbon emissions, strengthen its brand position, and target specific segments of the customer market.
II-Autonomous Driving
Along with the development of electric vehicles, Nissan has also invested a significant amount of capital resources in the development of autonomous driving vehicle technology. The company is working on the efficiency of autonomous driving vehicle technology to improve the user experience and make the ride safe.
III-Efficient Battery Technology
Nissan plans to install solid-state batteries in all of its electric vehicles in the upcoming years. Efficient batteries and energy storage devices are the main hurdles to the development of electric vehicles. However, the automobile brand is improving the quality of batteries to gain a competitive edge over competitors.
Legal Factors Impacting Nissan
Some of the main legal factors in the Nissan PESTEL analysis are as follows;
Regulatory Compliance
Nissan should comply with legal and regulatory requirements, trade policies, vehicle safety regulations, IPR, patents, import and export policies, and taxation policies of different countries. The compliance with regulatory requirements of different countries would help the automobile brand to smoothly perform its operations without disruption and restriction.
Environmental Factors Affecting Nissan
Some of the main environmental factors in the Nissan PESTEL analysis are as follows;
Sustainability Initiative
Nissan has made a strong commitment to environmentally sustainable initiatives. The electric automobile is investing a significant amount of resources in electric vehicles and green technology to decrease the carbon emission rate and reduce the overall carbon impact.
Conclusion: Nissan PESTLE Analysis |PESTEL Analysis of Nissan |External Environmental Analysis of Nissan | Strategic Analysis of Nissan
After an in-depth study of the pestle analysis of Nissan; we have realized that Nissan is the world’s leading automobile manufacturing brand. If you are learning about the Nissan PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
