Publications
Publications
- March 1994 (Revised October 1994)
- HBS Case Collection
Nissan Motor Co. Ltd.: Target Costing System
Abstract
Describes Nissan's sophisticated target costing system in the context of new product introduction. On the basis of consumer analysis and a life cycle contribution study, Nissan conducts an exhaustive analysis of component costs to determine whether a new model can be profitably manufactured. Cost reduction measures are then pursued both internally and with suppliers to ensure that the model can be produced to the target cost. The target costing system is central to Nissan's continued competitiveness in the fiercely contested Japanese automobile market.
Keywords
Citation
Cooper, Robin. "Nissan Motor Co. Ltd.: Target Costing System." Harvard Business School Case 194-040, March 1994. (Revised October 1994.)