Page 66 - PRAGMATIC STRATEGY

Job creation is both direct through the Sunderland factory and indirect
through the component suppliers thereby creating a large incentive for local

and national government aid.

Objectives

The Market Entry Strategy Factors diagram lays out Nissan’s overall objectives and
the factors which have shaped and influenced them.

The possession of experiential knowledge must have been a vital part in the
strategy. To gain experiential knowledge, a firm must experiment in order to
succeed. The accepted way to do it is by joint ventures or acquisitions.

Joint venture with a domestic partner will help lower uncertainty and allows
learning through the contacts. After a few years, the latter may no longer be

needed and the foreign investor can seek full control.