Strategic Management
Question 1. Renault was able to attain a good market share in the European market and it had been quite a profitable company, with profits jumping a massive 63% in 1999. Discuss how that success can be explained by (i) Renault’s resources and capabilities and (ii) Renault’s competitive environment.
Renault resources and capabilities:
Western Europe contributes the big portion (31%) of global automobile sales in1999, whereas Renault dominates that market with its immense strategies and was able to reach a 63% massive profit in 1999. In that year Renault manufactured 2300 cars, mostly of them were sold in western Europe.
Renault resources and capabilities plays a pivotal role in its strategic success according to porters view and in 1998 it was world’s ninth largest car manufacturer with 4.3% of the market portor’s view , Renault’s main resources and capability is its unique product line that is supported by continuous innovation and improvements. In 1984, Renault adventure of multi making multipurpose vehicle failed due to economic and political issues (pestle analysis) that results in withdraw from making motorsports. In 1990, Renault;s introduce several successful new models that contains different features from competitors and emerged as the strength of Renault, which covers the opportunities caused by globalization and growing markets i.e. megane line of car and scenin minivans ????. Meanwhile, Renault restructure its internal environment which is a good example of porter’s power of suppliers. The company squeeze its compact contract its supply chain and implied other cost control systems. These measures enable it to overcome its weaknesses (swot). Eventually shows a huge decrease in its manufacturing cost. However, production weakness of quality and productivity limits Renault’s growing growth. Engineering and productivity skills of Renault ere remain sceptic, despite its huge profit margin.
After failure of strategy in USA in 1980s, due to lack of ?????
Renault resources and capabilities:
Western Europe contributes the big portion (31%) of global automobile sales in1999, whereas Renault dominates that market with its immense strategies and was able to reach a 63% massive profit in 1999. In that year Renault manufactured 2300 cars, mostly of them were sold in western Europe.
Renault resources and capabilities plays a pivotal role in its strategic success according to porters view and in 1998 it was world’s ninth largest car manufacturer with 4.3% of the market portor’s view , Renault’s main resources and capability is its unique product line that is supported by continuous innovation and improvements. In 1984, Renault adventure of multi making multipurpose vehicle failed due to economic and political issues (pestle analysis) that results in withdraw from making motorsports. In 1990, Renault;s introduce several successful new models that contains different features from competitors and emerged as the strength of Renault, which covers the opportunities caused by globalization and growing markets i.e. megane line of car and scenin minivans ????. Meanwhile, Renault restructure its internal environment which is a good example of porter’s power of suppliers. The company squeeze its compact contract its supply chain and implied other cost control systems. These measures enable it to overcome its weaknesses (swot). Eventually shows a huge decrease in its manufacturing cost. However, production weakness of quality and productivity limits Renault’s growing growth. Engineering and productivity skills of Renault ere remain sceptic, despite its huge profit margin.
After failure of strategy in USA in 1980s, due to lack of ?????