Executive Summary: Renault-Nissan Is No Longer Able to Rely on Their Previous Strengths. Nine Years After the 1999 Alliance We Are Once Again Being Met with a Transforming Automotive Industry. in Order to Ensure Our
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To: From: Re: Date: Carlos Ghosn, Chief Operating Officer, Renault-Nissan Joseph Klein, Senior Consultant, Klein Consulting Bolstering Renault-Nissan April 30, 2012
Executive Summary: Renault-Nissan is no longer able to rely on their previous strengths. Nine years after the 1999 alliance we are once again being met with a transforming automotive industry. In order to ensure our place as a future industry leader we must take immediate action. Major trends seem to be concentrating on safety, environmental impact and technological integrations. Renault-Nissan must incorporate another company in order to be successful. But instead of seeking resources within our industry we must search for another channel. As technology, safety, and environmental concerns become major influences in the automotive industry it is essential that Renault-Nissan look for a partner that will allow efficiencies to be achieved in this changing industry.
Competitive Landscape: Renault-Nissan is in the midst of a globalized transformation of the automotive industry. As consumer preferences change and strategic synergies between companies become more common it is becoming increasingly difficult to forecast major trends. Renault has lost its former profitability. They are struggling to stop their decline while Nissan is searching for an avenue for continued sustainable growth. These companies have formed an alliance that allows them to function independently while leveraging common synergies. This alliance has provided a much-needed opportunity for these companies to become major competitors in the global automotive industry. As the industry is transforming, Renault-Nissan must be careful to alter their strategy so it focuses on innovation and advancement. Renault-Nissan is not the only company seeking to leverage synergies. Largely, Toyota’s recent merger with Citroën should be a main focus, especially for Renault as they rely on the European segment for 72% of their revenues. As
To: From: Re: Date: Carlos Ghosn, Chief Operating Officer, Renault-Nissan Joseph Klein, Senior Consultant, Klein Consulting Bolstering Renault-Nissan April 30, 2012
Executive Summary: Renault-Nissan is no longer able to rely on their previous strengths. Nine years after the 1999 alliance we are once again being met with a transforming automotive industry. In order to ensure our place as a future industry leader we must take immediate action. Major trends seem to be concentrating on safety, environmental impact and technological integrations. Renault-Nissan must incorporate another company in order to be successful. But instead of seeking resources within our industry we must search for another channel. As technology, safety, and environmental concerns become major influences in the automotive industry it is essential that Renault-Nissan look for a partner that will allow efficiencies to be achieved in this changing industry.
Competitive Landscape: Renault-Nissan is in the midst of a globalized transformation of the automotive industry. As consumer preferences change and strategic synergies between companies become more common it is becoming increasingly difficult to forecast major trends. Renault has lost its former profitability. They are struggling to stop their decline while Nissan is searching for an avenue for continued sustainable growth. These companies have formed an alliance that allows them to function independently while leveraging common synergies. This alliance has provided a much-needed opportunity for these companies to become major competitors in the global automotive industry. As the industry is transforming, Renault-Nissan must be careful to alter their strategy so it focuses on innovation and advancement. Renault-Nissan is not the only company seeking to leverage synergies. Largely, Toyota’s recent merger with Citroën should be a main focus, especially for Renault as they rely on the European segment for 72% of their revenues. As
References: 1. "Ford SYNC." FORD.com. Ford Motor Company. Web. 21 Apr. 2012. . 2. Hanley, Michael, and Jeff Henning. "Mega Trends in the Light Vehicle Industry." Global Automotive Industry. Ernst and Young. Web. 25 Apr. 2012. . 3. Mergent Online Database. 4. "OICA 2008 Statistics." OICA.com. The International Organization of Motor Vehicle Manufacturers. Web. 28 Apr. 2012. . 5. Ramaswamy, Kannan. "Renault-Nissan: The Challenge of Sustaining Strategic Change." Thunberbird - School of Global Management. Web. 6. TMC Annual Report 2008. Toyota Motor Company, 2008. PDF. Exhibit 1: ` TMC – Annual Report 2008 Exhibit 2: Data from Mergent Online/Graphed by Thomas Craig Exhibit 3: PEST Analysis