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Renault is one of the main French and European automotive groups, created more than a hundred years ago by the Renault brothers. The group has tried for several years to establish itself on a global scale and to become one of the world leaders in this market.
For more than twenty years, Renault has operated through a strategic alliance with Nissan, another car manufacturer.
We will present a SWOT analysis of the Renault group in the context of its international positioning. It is a question of describing its strengths, weaknesses, opportunities, and threats that weigh on the group as a whole.
Renault understood very early on the need to offer vehicles in differentiated price ranges. More than twenty years ago, it positioned itself on the market for low-cost vehicles and, therefore, now has good expertise in this area. The group achieves economies of scale by producing vehicles in large quantities.
One of Renault's advantages is to benefit from an internal financing company called RCI, which makes it possible to offer customers quick and easy financing solutions.
Renault is already present in many international markets, particularly in emerging countries such as Africa and Asia.
Renault remains a very European, more specifically French, manufacturer and is struggling to conquer major markets in a stable and sustainable manner. Analysts criticise the group for not properly taking into account the expectations and desires of consumers from other markets, which penalises it when foreign consumers purchase vehicles. In fact, Renault remains very dependent on the French market and its growth and is having difficulty becoming credible on a global scale.
Renault has been rocked by the scandal of the escape of its president Carlos Ghosn in 2019 and by his flight to Lebanon following his exile from Japan after his arrest. The group's brand image was badly tarnished by this incident.
Finally, Renault is struggling to gain market share in premium or luxury vehicles and remains focused on entry-level vehicles.
Renault already has factories abroad, particularly in emerging countries, where the group benefits from lower manufacturing costs than in Europe and France, which allows it to maintain its margins despite lower selling prices.
The automotive market is returning to significant growth after difficult years marked by the COVID pandemic. Consumers and companies tend to catch up on the delay they have acquired in renewing their car fleet, which is a real opportunity for Renault.
Finally, the group is counting on the very strong demand for clean, electric, or hybrid vehicles, which offers it new sources of growth and renewed opportunities.
Moreover, the automotive sector is very competitive, margins are low, and manufacturers are very keenly competing for market share. In India, for example, the manufacturer TATA is one of the main market leaders, far ahead of Renault in terms of market share.
The automotive world has undergone major changes in recent years. Environmental pressures are increasing, city centres are multiplying pedestrian or car-free zones, and electric vehicles are flourishing. It is the market as a whole that must reinvent itself, find new mobility solutions, and develop carpooling or shared vehicles. In any case, the market is shaken by strong developments, environmental and fiscal pressures are strong, and manufacturers must navigate nimbly.
Finally, the group is greatly affected by the changes in the prices of raw material observed in recent years. Inflation is significant with regard to materials, and the manufacturer, like its competitors, is encountering difficulties in supplying semiconductors, in particular. The strong dependence on the Asian market in this area, is a threat to Renault.
Renault is a large-scale international group constantly reinventing itself and trying to pursue its international conquest, despite a constantly changing market.
In-Depth SWOT Analysis Of Renault + Infographics | IEN
For more than twenty years, Renault has operated through a strategic alliance with Nissan, another car manufacturer.
We will present a SWOT analysis of the Renault group in the context of its international positioning. It is a question of describing its strengths, weaknesses, opportunities, and threats that weigh on the group as a whole.
I. Renault’s main strengths
Renault benefits from more than a century of experience in its market and has the advantage of a good brand image of French manufacturers.Renault understood very early on the need to offer vehicles in differentiated price ranges. More than twenty years ago, it positioned itself on the market for low-cost vehicles and, therefore, now has good expertise in this area. The group achieves economies of scale by producing vehicles in large quantities.
One of Renault's advantages is to benefit from an internal financing company called RCI, which makes it possible to offer customers quick and easy financing solutions.
Renault is already present in many international markets, particularly in emerging countries such as Africa and Asia.
II. Renault’s main weaknesses
Even if the group is already well established internationally, some areas are poorly covered by the Renault group, despite strong growth potential. This is particularly the case in India, a market in which Renault is still poorly established, but also in Asia. Renault is struggling to penetrate these dynamic Asian markets.Renault remains a very European, more specifically French, manufacturer and is struggling to conquer major markets in a stable and sustainable manner. Analysts criticise the group for not properly taking into account the expectations and desires of consumers from other markets, which penalises it when foreign consumers purchase vehicles. In fact, Renault remains very dependent on the French market and its growth and is having difficulty becoming credible on a global scale.
Renault has been rocked by the scandal of the escape of its president Carlos Ghosn in 2019 and by his flight to Lebanon following his exile from Japan after his arrest. The group's brand image was badly tarnished by this incident.
Finally, Renault is struggling to gain market share in premium or luxury vehicles and remains focused on entry-level vehicles.
III. International opportunities for the Renault group
Renault is reliant on the proven strong demand for low-cost vehicles. This segment of the market is growing rapidly, and this growth has continued to accelerate in recent years.Renault already has factories abroad, particularly in emerging countries, where the group benefits from lower manufacturing costs than in Europe and France, which allows it to maintain its margins despite lower selling prices.
The automotive market is returning to significant growth after difficult years marked by the COVID pandemic. Consumers and companies tend to catch up on the delay they have acquired in renewing their car fleet, which is a real opportunity for Renault.
Finally, the group is counting on the very strong demand for clean, electric, or hybrid vehicles, which offers it new sources of growth and renewed opportunities.
IV. The main threats to Renault internationally
Renault is threatened by the political, fiscal, or economic instability of several emerging countries in which it is present and dynamic. The birth of an armed conflict between Russia and Ukraine penalised Renault, which had begun to conquer the Russian market in the 2000s.Moreover, the automotive sector is very competitive, margins are low, and manufacturers are very keenly competing for market share. In India, for example, the manufacturer TATA is one of the main market leaders, far ahead of Renault in terms of market share.
The automotive world has undergone major changes in recent years. Environmental pressures are increasing, city centres are multiplying pedestrian or car-free zones, and electric vehicles are flourishing. It is the market as a whole that must reinvent itself, find new mobility solutions, and develop carpooling or shared vehicles. In any case, the market is shaken by strong developments, environmental and fiscal pressures are strong, and manufacturers must navigate nimbly.
Finally, the group is greatly affected by the changes in the prices of raw material observed in recent years. Inflation is significant with regard to materials, and the manufacturer, like its competitors, is encountering difficulties in supplying semiconductors, in particular. The strong dependence on the Asian market in this area, is a threat to Renault.
Renault is a large-scale international group constantly reinventing itself and trying to pursue its international conquest, despite a constantly changing market.
SOURCES
Renault SWOT Analysis Example 2022 - Answer Key PDF (managerocean.com)In-Depth SWOT Analysis Of Renault + Infographics | IEN
