This study will consist of three parts: The theoretical part will include the reasons why companies decide to merge. The second part briefly presents Renault (in its current context) and its alliance with Nissan. Finally, the third part may respond to questions from the study: Is the development strategy of Renault relevant? Does the choice to use Renault as a partner seem to you to be based on sound judgment? What do you think of the choice of Nissan as a partner?
A strategic alliance is a formal trade cooperation, adopted by mutual agreement between the companies. The alliance partners are pooling, exchange or integrating some of their resources for mutual benefit, while remaining separate entities and totally independent.
To be strategic, an alliance must be of decisive importance for the companies that comprise it, or at least one of them, otherwise it is a simple agreement.
One of the typical characteristics of a strategic alliance is that it often allows companies to do together what they could not do alone,such as launching new products, find new markets for existing products or reduce production costs or operating partners in making their production or operation more efficient.
Strategic alliances take on very different forms. They have considerably evolved and are much relaxed in recent years. Companies can choose an alliance that does on mere trade agreement or a cross-licensing. They can also establish a partnership from more complex agreements, industrial cooperatives or joint ventures with capital stock.
The main difficulty that one encounters when trying to form a successful alliance is to find the right partner. One can see that two major types of strategic alliances are taking place between companies. They are intended to implement the complementarities between the different expertise of partners with a view to international expansion accelerated.
The fundamental characteristic of complementary strategic alliances is highly complementary skills and resources provided by partners.In exploiting this complementarity that companies can become allies to seize opportunities in world markets, although these opportunities would have remained beyond the reach of each partner in isolation.It is in this strategic vision that the alliance between Renault andNissan takes part.
They have, conversely, aim is to reach a critical size by the addition of similar assets and skills. The underlying reason for this type of alliance is that the market may be too small for a profitable automaker reaches only the necessary investment on the life of the product. In other words, one must take some market share to be profitable on the market. The goal becomes more realistic if two powerful rivals form alliance enabling them to reach critical mass by adding their resources and market share.
With this one can say that alliances are complementary to aggressive strategies of conquest, while the additive alliances are with more defensive strategies.
Since 1999, this strategic alliance is a group of two global companies linked by cross-share holdings. Nissan now owns 15% stake in Renault, and Renault owns 44.44% stake in Nissan(including shares and voting rights).
The group is led by a strategic management company: Renault - Nissan bv created March 28, 2002.
In 2003, the fourth largest automotive group global vehicle production. Their ambition for the future is to become a top three global automakers in terms of quality, technology and profitability.
Renault and Nissan have common operating principles.
Tags: Renaultu Nissan strategic alliance, automobile , new marketsT
[...] RESOURCES (plant location) Country Renault Nissan America. SOUTH: Argentina, Colombia, NORTH: United States Uruguay, Brazil, Chile. CENTRAL: Mexico Europe WEST: France, Spain, Portugal WEST: Spain, Great Britain. CENTRAL, EASTERN: Romania, CENTRAL EAST: Iran, Pakistan. Russia, Slovenia, Turkey Asia China, Malaysia China, Indonesia, Malaysia, Philippines, Taiwan, Vietnam, Japan, Thailand Africa Morocco South Africa, Egypt, Kenya, Zimbabwe. 3 - Diagnostic crossover and value chain For a comprehensive understanding of the reasons Renault has chosen Nissan as a partner, we will show that for every weakness on part of Renault, it has found a solution in the forces of Nissan. [...]
[...] This would strengthen the interdependent relationship between the two companies. On the other hand, a cooperative relationship is viable and successful only when the two companies are solidly united. So rather than simply coordinating resources and expertise on complementary markets, the group should also unify its sales force in countries where neither company is present (such as Poland, for example, because it is a potentially interesting market). This would allow both companies to establish itself as a real group and not just two companies working together (leaving free rein to the risks of opportunism). [...]
[...] However, this was not Renault's choice. So here we will try to understand why Renault has taken the risk of using an alliance instead of opting for a safety valve? Several reasons explain Renault's willingness to resort to a alliance. We should examine the economic context of the company during this decision- making. Also be aware that the company has opted for a strategic alliance for very specific reasons. Indeed, the company could have chosen other alternatives such as a merger - acquisition, joint venture, a simple partnership, or the creation of an economic interest group with its respective partner. [...]
[...] This study, on the one hand, allowed me to deepen my knowledge on existing development in the industrial sector (mergers and acquisitions, export, etc . On the other hand, it gave me the opportunity to have a critical analysis of the strategic modes of internationalization and especially to see that the theory and practice are often delayed owing to hidden strategies by companies. Finally, this study allowed me to reflect on the use of conceptual frameworks (SWOT, value chain . etc.) to analyze real market situations, and provide strategic thinking in less theoretical matters (recommendations). [...]
[...] • Joint Venture: The international expansion of large companies is also facilitated by the formation of joint ventures based on the achievement of operational agreements with local construction companies owned or belonging in complementary sectors. More specifically, there exists the possibility of creating a joint venture between two partners: we see here the emergence of the concept of risk and the notion of accountability. The two companies will therefore create a common unit to develop a product, develop technology, to develop or attack new markets. So they share the risks as well as the investments. [...]
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