Annotated Bibliography
Businesstrategy
March 16, 2010
Special Collector’s Edition
$ 8.88
©
www.businesstrategy.com
Carlos Ghosn
President Renault
Sa
Succes storY
Anne-Laure Frégonèse Nicolas Leconte Damien Auriault Clément Montauze Lévana Tordjman Benoît Freulon Rédouane Kaouri Adrien Gruppo Marion Blazère Pierre Kerneis
Project works realized for the Business course of Graig A. MacDonald
Sommaire
I. II. Introduction ............................................................................................................................... 2 Mission Statement .................................................................................................................... 3
III. Renault Group presentation ...................................................................................................... …show more content…
Its competitive strength is due to its association with Nissan, Samsung Motors and Dacia, which gives it an advantage in R&D, production and distribution. Ten years into the Alliance, Renault and Nissan take cooperation to a higher level with the creation of a dedicated team to expand cooperation and maximize synergies between the two partners. The competitive production capacity at the Dacia production base coupled with Renault’s technical expertise form the two most critical factors in the company's product line renewal strategies. In addition, despite the crisis, the Renault group has grown its market share. Seven of the company’s vehicles were awarded with top five-star rating in Euro NCAP crash tests, thus demonstrating that Renault’s vehicles have one of the best safety features. In 2008, all manufacturing sites within the Renault perimeter were certified ISO 14001. Latest to obtain the certification were the sites of Somaca (Morocco) and Avtoframos Weakness The Renault is greatly dependent on Western Europe for its sales, which is contributing with 72.8% of its total sales. This will have a great impact if the company’s market share (for cars and LCVs) would decline. In addition, the CAGR of auto production for Western Europe (from 2005-2007) is forecasted to decline by 0.2%. Then, the company should diversify its geographical customer base. Opportunities The geography-based synergies developed by the alliance with Nissan will create a great opportunity to be leveraged over the long term. Many model launches, such as Twingo, Megane and Logan are expected to contribute to the company’s earnings. In the long term, Renault is looking at developing its presence in the US at the industrial as well as commercial
March 16, 2010
Special Collector’s Edition
$ 8.88
©
www.businesstrategy.com
Carlos Ghosn
President Renault
Sa
Succes storY
Anne-Laure Frégonèse Nicolas Leconte Damien Auriault Clément Montauze Lévana Tordjman Benoît Freulon Rédouane Kaouri Adrien Gruppo Marion Blazère Pierre Kerneis
Project works realized for the Business course of Graig A. MacDonald
Sommaire
I. II. Introduction ............................................................................................................................... 2 Mission Statement .................................................................................................................... 3
III. Renault Group presentation ...................................................................................................... …show more content…
Its competitive strength is due to its association with Nissan, Samsung Motors and Dacia, which gives it an advantage in R&D, production and distribution. Ten years into the Alliance, Renault and Nissan take cooperation to a higher level with the creation of a dedicated team to expand cooperation and maximize synergies between the two partners. The competitive production capacity at the Dacia production base coupled with Renault’s technical expertise form the two most critical factors in the company's product line renewal strategies. In addition, despite the crisis, the Renault group has grown its market share. Seven of the company’s vehicles were awarded with top five-star rating in Euro NCAP crash tests, thus demonstrating that Renault’s vehicles have one of the best safety features. In 2008, all manufacturing sites within the Renault perimeter were certified ISO 14001. Latest to obtain the certification were the sites of Somaca (Morocco) and Avtoframos Weakness The Renault is greatly dependent on Western Europe for its sales, which is contributing with 72.8% of its total sales. This will have a great impact if the company’s market share (for cars and LCVs) would decline. In addition, the CAGR of auto production for Western Europe (from 2005-2007) is forecasted to decline by 0.2%. Then, the company should diversify its geographical customer base. Opportunities The geography-based synergies developed by the alliance with Nissan will create a great opportunity to be leveraged over the long term. Many model launches, such as Twingo, Megane and Logan are expected to contribute to the company’s earnings. In the long term, Renault is looking at developing its presence in the US at the industrial as well as commercial