Brief Case Study: Dacia As A Manufacturing Company In Romania
Dacia is one of the top car manufacturer company in Romania by revenue and is the largest exporter as well.
Dacia contributes to around 2.9% of Romanian GDP.
Brief History
Dacia is a car manufacturer company which was founded in the year 1966 in Romania. The initial name was Uzina de Autoturisme Pitesti (UAP) and has their first factory built at Colibasi in 1968 [8]
By the year 1989, Dacia was facing a hard time competing with many foreign cars penetrating into the Romanian market. Their design, factories and equipment were old-fashioned and struggled to keep pace with the foreign counterparts. In the year 1999, Renault acquired Dacia and invested a stunning 2.2 billion euros so as to update the production facilities, design etc. Their main …show more content…
The huge hike in Dacia sales during the last few years is a solid proof that people are interested and are satisfied with low budget cars. However, one of the key factors affecting the business in the limited number of models/variant and poor design available for the customers. With proper funding from the parent company (Renault), more R&D can be implemented to design and develop more variants/models to satisfy different customer requirements, however, by keeping the price affordable as before.
2) Dacia is the automotive market leader in Romania and is competing well in the EU market as well. However, most of the exported cars to international market are sold under Renault, which in turn take the name and fame of the units. For Dacia to be a global player, it needs to launch or sell units under its name. The Dacia management should build new partnerships or joint ventures with other global automotive players in order to invest and expand to other countries. Numerous OEMs (original equipment manufacturers) and investors are trying to develop and conduct their operations in Romania, which will be a great platform for the growth of
Dacia contributes to around 2.9% of Romanian GDP.
Brief History
Dacia is a car manufacturer company which was founded in the year 1966 in Romania. The initial name was Uzina de Autoturisme Pitesti (UAP) and has their first factory built at Colibasi in 1968 [8]
By the year 1989, Dacia was facing a hard time competing with many foreign cars penetrating into the Romanian market. Their design, factories and equipment were old-fashioned and struggled to keep pace with the foreign counterparts. In the year 1999, Renault acquired Dacia and invested a stunning 2.2 billion euros so as to update the production facilities, design etc. Their main …show more content…
The huge hike in Dacia sales during the last few years is a solid proof that people are interested and are satisfied with low budget cars. However, one of the key factors affecting the business in the limited number of models/variant and poor design available for the customers. With proper funding from the parent company (Renault), more R&D can be implemented to design and develop more variants/models to satisfy different customer requirements, however, by keeping the price affordable as before.
2) Dacia is the automotive market leader in Romania and is competing well in the EU market as well. However, most of the exported cars to international market are sold under Renault, which in turn take the name and fame of the units. For Dacia to be a global player, it needs to launch or sell units under its name. The Dacia management should build new partnerships or joint ventures with other global automotive players in order to invest and expand to other countries. Numerous OEMs (original equipment manufacturers) and investors are trying to develop and conduct their operations in Romania, which will be a great platform for the growth of