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and today it accounts for 60% of all the Nissan cars sold in Europe.
Nissan had a number of rational reasons to choose the UK for setting up a plant. These reasons and possible benefits are analysed by using the Porter’s Diamond. The most evident motives appeared to be easily accessible labour, the level of technology, high demand for vehicles, a big number of steel manufacturers and the opportunity of being closer to the customers, i.e. building up competitive advantage.
The report also examines the advantages and disadvantages of a wholly owned foreign subsidiary. The key advantages found were the complete access and control by the Nissan management over the subsidiary and the elimination of a need to share the innovative ideas, which is likely to happen in an alliance or in other entry modes...
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