The article it talks about “Nissan” introducing it’s first Thai promoted eco-car that is supported by the government. The articles said that Nissan is entering the low-cost compact car segment. I believe that this is a strategy in order to increase its overall car sells in the long run. For the short-run its tactic was to go into this car segment and expand its sale in this segment as it is still growing. Also the Thai government tax break incentives.
Using some of Porter’s 5 forces components. There’re high barriers to entry to this industry as the cost for manufacturing car is high, however Nissan already possess a car plant therefore, it is not that difficult to produce another car model, however there will be variable costs. Due to government policy that supports, it helps to reduce barriers to entry. The rivalry in this industry is quite low as there are high fixed costs, few numbers of firms due to high running cost, and high exit barriers as the firm asset is hard to sell once it leaves the industry. Thus, I believe that it is likely to be successful by launching this product.
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