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Mitsubishi Motors Sustainable Operations

April 29, 2020

MitsubishiMotors Sustainable Operations

OperationsSummary

MitsubishiMotors is one of the biggest automotive makers in Japan and has beenin existence since 1917. The company has been effective and steadfastin investing globally as one way of enhancing its operations andcompete effectively. Mitsubishi Motors has also establisheddealership across the globe to provide sales services on its behalf(Pfoertsch, 2014). Recently, the company formed an alliance withNissan to manufacture and sell cars jointly.

SWOTAnalysis

Strengths –Mitsubishi

  • Mitsubishi has a wide range of products to suit the many customers in the market (Smith, 2014).

  • The company also has a high number of employees to handle the overwhelming work

  • Incredible advertising strategy of its brand.

Weaknesses-Mitsubishi

  • The company tend to be over reliant on the Japanese market.

  • Mitsubishi is highly affected by the intense competition in the market from other strong brands.

Opportunities-Mitsubishi

  • To boost its sales, the company can start making hybrid cars.

  • Manufacturing fuel efficient cars to tap into the existing demand in various countries.

  • Securing the emerging market and come up with brands which would serve the global market.

  • Combining its operations with other leading car manufacturers in the world to increase its sales.

Threats-Mitsubishi

  • Fuel prices have been skyrocketing and would affect the sales.

  • Various nations have been switching to other modes of transport such as buses and trains.

  • The ever-changing government policies across the world can affect its operations.

Financial

        • 2016 Revenue- 2.27 Trillion yen, up 4% from 2015

        • 2016 Gross Income -1,098.9 Billion yen, down 9% from 2015

        • 2016 Net Income- 72.6 Billion yen, down 39% from 2015

        • Stock Price- Not listed in the market.

InnovativeSolution Idea

MitsubishiMotor Company has been consistently making profits (Hsu, 2013).However, there is a need to come up with a proper strategy to enhanceits operations. To boost sales and maximize on revenues, there is aneed for the management to reduce the huge operation costs. Furthermore, it should come up with new and modern cars to competeeffectively in the market.

AlternativeSolutions to the Problem

  • The company should strive to get access to the international markets dominated by other companies.

  • It should implement new and more technologically advanced products to secure large markets.

  • Mitsubishi should improve its operations and come up with fuel efficient models of cars.

ExplainingOne of the Solutions

Strivingto access more international markets for Mitsubishi will enable thecompany to generate massive revenues in the long run. Therefore, itis imperative that the company maintains high-quality production andcome up with unique products that will attract a huge number ofconsumers.

References

Hsu,B. (2013). Classic Japaneseperformance cars: History &amp legacy.North Branch, MN: CarTech.

Pfoertsch,W. (2014).Going Abroad 2014 How to understand foreign markets and do businessaround the globe.Berlin epubli GmbH.

Smith,A. (2014). ‘Strengths and weaknesses of Mitsubishi.` Available athttps://auto2014.wordpress.com/2014/01/16/strengths-and-weaknesses-of-mitsubishi/(Retrieved 2nd Apr 2017)

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