Nissan's Turnaround Story|Business Strategy|Case Study|Case Studies

Nissan's Turnaround Story

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Case Details:

Case Code : BSTR073
Case Length : 18 Pages
Period : 2003
Organization : Nissan Motors Ltd.
Pub Date : 2003
Teaching Note : Available
Countries : Japan
Industry : Automobile

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

The history of Nissan dates back to 1933, when Jidosha Seizo Co. Ltd., was established in Yokohama.

The company was into manufacturing cars and trucks. In 1934, the company's name was changed to Nissan Motor Co. Ltd., and in the same year, Nissan started exporting Datsuns to Asia, Australia and Central and South America. In the following year, the company's fully integrated assembly plant became functional. By 1943, Nissan inaugurated its second manufacturing plant at Yoshiwara but in the same year, due to the Second World War, production of cars and trucks was stopped. In 1944, Nissan's headquarters was shifted to Tokyo and the name was also changed to Nissan Heavy Industries Ltd. In 1945, Nissan resumed production of cars. In the following year, it shifted its headquarters back to Yokohama and diversified its operations to research and development of textile machinery.

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In 1949, the company's name was again changed to Nissan Motor Co. Ltd. Over the years, Nissan expanded its operations into various fields. In 1950, Nissan acquired an equity stake in Minsei Diesel Motor Co., Ltd., (later known as Nissan Diesel Motor Co., Ltd).

In 1952, Nissan entered into technological co-operation with Austin Motors of UK, and in the following year it started manufacturing rocket motors. By 1957, the company had started manufacturing forklifts. In 1958, Nissan started exporting passenger cars to the US under the brand name Datsun. Along with exporting, the company also focused on establishing manufacturing units outside Japan. In 1959, Nissan established its first overseas factory at Taiwan and in the following year it established Nissan Motor Corporation in the USA. In 1961, Nissan Mexicana S.A. de C.V was established in Mexico and in the following year it commenced operations at its Oppama Plant in Japan...

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