As we known Ionians is a Japanese brand name, which is famous of their high quality in electronic and enduring products. In SOOT analysis we can see how Ionians business goes and how they look in customer view. Strength: Strong Research and Development: Ionians is also known for its engineering, development directed towards performance improvement, safety, customer satisfaction, and development of new and innovation products. The company allocates significant resources to its Research and Develop operating in 65 engineering and Research & Development centers around the world.
Ionians is one of the most popular automobile brand names, which having a high global reach and they have over 1. 5 million employees globally in the world. Ionians is like a pioneer in the electric car segment having its global presence and in electronic car Ionians has proved to customer and other automobile that it's really challenge to compare to their brand name base on their quality and technology they have. As globalization Ionians has manufacturing locations in Japan, India, Brazil, Spain, Thailand, USA, Malaysia and others countries. Therefore, Ionians production output opacity can manufacture around 4 million units.
Ionians' brand was the fastest growing automotive brand name in 2012; Niacin's brand was the fastest growing automotive brand in 2012, according to Interbrain. Its value rose by 30% to nearly $5 billion and became the 73rd most valuable brand in the world. However, Ionians claim this reward from Interbred is from their top car seller: Deana, Leaf, Altair, Versa all of these models targeted to young generation and economic family. From this target and price they have given with their quality they have attract more customer to use their brand name.
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Weakness: Declining reputation due to product recall: Ionians recalled a number of cars recently due to safety problem in November 2010. It recalled 604,500 vehicles due to faulty steering shaft and battery defects. More than 300,000 frontier pick-up trucks and more than 280,000 Exeter SUB were also recalled due to faulty steering shaft. About 20,000, Sentry units were also recalled to battery defects. In October 2010, there are 830,000 units of nine models were recalled due to problems in engine control switches. Significant product recalls negatively impacts the consumer confidence in
Niacin's products and brand image (Denominator, 2011) Although Ionians recalls comparably less cars than its competitors do, such situation still hurts firm's brand reputation and customers loyalty. Secondly, Ionians weakness is unclear brand. Despite long history in the automotive industry, Ionians is rarely considered as a strong brand. They are notion as unclear marketing strategies and brand development initiatives that it has implemented in the recent years. Despite efforts to compete and re-design its brand, the brand struggled in anonymity and settled in becoming a "generic Japanese brand".
Even for Niacin's corporate group, it is not where Ionians stands. Lack of experience in diesel technology: till this moment, diesel vehicles sold has been increase a lot compare to 2006 with 0. 4% vehicles. In contrast, Ionians Soot By adenoidal 994 end of lath January, 2006 the number of diesel cars sold increased by 7. 5% and many people believe that the diesel market will account more than 80% of total vehicles sales in Europe by the end of 2008. Diesel technology has been proving significantly over the past few years because of reducing emission, fuel consumption and cost.
Japan (Niacin's home country) has a low demand for diesel engines and this causes Ionians lack of experience in produce diesel technology than its competitive. Opportunities: After Ionians Leaf release shares at the Tokyo Stock Exchange was up 5. 4% to 726 yen, the highest level from 29-9 last year. CEO of Ionians, Carols Shown, said electric cars could account for 10% of global car sales by 2020 and not utility-emission electric vehicle can offset its weakness is limited to distances traveled. But Mr... Chichi Nisei, equity strategist of Nikkei Cordial Securities Inc.
Said investors scrambling to Jump into the car after the Ionians widely awaited debut. "The product meets its commitment to environmentally friendly is always encouraging," said Chichi said. As the increase of greenhouse affect the demand for environmental friendly vehicles also increase. Vehicles have been a major factor in intensifying greenhouse effect by discards a large quantities of CA and heavily polluting air. Government and customer are being aware of this negative impact and USA has given a lot of concessionaires to people who buy friendly environmental vehicles that discard less
CA. Ionians has done well in experience of creating strategic partnerships that bring new capabilities, technology, and synergy to the firm. In this situation, many firms find ways to cut the costs. However, Ionians need to establish more partnerships, alliances, and benefit from the advantages that come with them The increasing of fuel and price is one of the most factors that Ionians like: From few years ago, Ionians has favoring fuel-efficient cars with hybrid, hydrogen or electric engines which will save money and more friendly with environmental.
The increasing eel price would have a lot of benefit for Ionians because it encourages customers to buy such electronic cars and Ionians is already in its position to offer many car models with friendly environment engines. Threat: Sometimes, the decreasing of fuel price also has a real big effect to the sale of electronic or hybrid car. And the possible of drop of fuel price is much high when technology getting more improves and more shale gas fuels will be extracted. So for this reason, hybrid, electric and hydrogen vehicles may become less attractive to consumers. However, most of Ionians profits come from other countries and after
Japan Tsunami the exchange rate of Yen compare to other countries exchange rate has fall down and it also lead to the decrease of revenue Ionians earn. The competition between Ionians and others automotive companies will intensify in the future. Handyman, Honda, Toyota and other car producer competitive will have to introduce new models faster and compete more on the price, quality, and design to 1 target, which can satisfy customers need and wants can earn more profits. As the economic rising of China there are a lot of things have been affected and car has increased about 30% (London Metal Exchange, 2006).
Ionians has founded their own step to reduce the effect of rising steel prices. In 2000, Ionians began using hot dip zinc coated steel and converted to less expensive steel in 2002, which saved about $16 million per year (Ionians Motor Co. , 2004). In Conclusion, Ionians have its good and bad side. They need to keep their goods and improve what they miss in market. We can see that many people leave their hope in Ionians Leaf world first electronic car and this car will build up a new face for Ionians like Mercenaries, Audio, BMW is world's most famous luxury car and if Ionians focus on
Ionians Leaf project to produce a better technology on Ionians Leaf. Improving the strong of brand name also very important because it's what customer believes in Ionians brand name. Ionians need to define their one target in the market like other brand name. Declining reputation due to product recall: Ionians has recalled a number of cars for this few years due to the safety problem in November 2010. And it also recalled 604,500 vehicles because of the faulty steering shaft and battery defects. More than 300,000 pick-up trucks and more than 280,000 SUB were also recalled due to faulty teetering shaft.
There are 20,000, Sentry were also recalled because the defects of battery. In October 2010, 830,000 units of nine models were recalled cause of problems in engine control switches. The mean of product recalls negatively impacts the consumer confidence in Niacin's products and brand image (Denominator, 2011). Even though Ionians recalls less than its competitors did, but this situation still effect to the reputation and customer loyalty of Ionians. Comparably less cars than its competitors do, such situation still hurts firm's brand reputation and customers loyalty.
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