Renault is a globally renowned automobile group and car maker present in 118 countries with approximately 130,000 employees. The Renault group achieved a turnover of almost 41 million euros in 2007. The Company Renault Freres was created in 1898 by three brothers Louis, Marcel and Fernand. Marcel and Fernand, died soon after the creation of the firm. Marcel died in a car race in 1903 while Fernand died in 1909 following a prolonged illness. This left Louis Renault as the only heir of the company.
Louis Renault had two passions: technological innovation and factories. After getting the first order for 250 taxis in 1905, the Renault factories adopted the system of series production. Louis Renault introduced Taylorism into his factories in order to increase productivity and to ensure the diversification of production.
Renault also participated in the war efforts of France in 1914. The company manufactured trucks, stretchers, ambulances, shells and even the famous FT17 tanks, which contributed to the decisive final victory. By 1919, Louis Renault had become the first private industrialist in France.
What is the strategy of Renault?
‘Renault Commitment 2009' announced by Carlos Ghosn in 2006 rests on three commitments:
-Quality (robust design, manufacturing compliance, product reliability, quality sales and after sales)
-Profitability with the aim of achieving an operating margin of 6% in 2009
-Growth: sell 800,000 vehicles more in 2009 over 2005
To meet these commitments, Renault formulated a strategy of differentiation through an overhaul of the range. Indeed, the group played the card of differentiation by offering specific products that are recognized and valued by different market segments covered thereby gaining a competitive advantage. Renault's strategy also relies on an international expansion.The alliance concluded between Renault and Nissan in this direction, allowed Renault to speed up the implementation of its own growth strategy in a cost-effective manner.
Renault and Nissan are two independent companies: each retains its own organization, its own objectives and its strategy of profitable growth. However, they must ensure that these strategies are part of an overall and coherent pattern within the bi-national group Renault-Nissan.
The best way to implement the growth strategy faster and more economically is to ensure the strategic coherence of the Renault-Nissan group.
Building on the strengths where they exist, Renault-Nissan is quickly becoming more efficient than if it were acting alone. By sharing resources with Nissan to develop platforms and engines, Renault may, in the same way, focus its technical and financial resources on the renewal of its products. And what is true for Renault holds true for Nissan as well.
In its effort to internationalize, Renault is focusing on the emerging economies, recognizing that much of the population has no access to cars. If Renault has made this choice, it is because the strength of its European base allows it to sustain an effort over the long term. Similarly, Renault has invested in Korea and has also devoted significant resources to the upgrading of Dacia, Romania, to produce a modern vehicle adapted to emerging markets.
Keywords: study of Renault, DAS, analyzing the Renault strategy, cars, activities, competition, internal study, external study, turnover, Renault Espace, Citroen, Peugeot, Fordisme
[...] Hexagons sector A. SBU for automobiles To realize the attractiveness of the automotive market we firstly analyze the 5 competitive forces of Porter for the SBU of vehicles. Threat of new entrants The automotive industry has high barriers to entry for companies wishing to enter the sector, which tends to be concentrated. Indeed, this sector requires heavy investments (infrastructure, research and development, establishment of a network of national and international distribution). Moreover, awareness is difficult to acquire and requires substantial funds on advertising. [...]
[...] This example illustrates how competitive advantage is short-lived in the automotive market. When we innovate, we are hopelessly overtaken by competitors. More, it is positioned according to the competitors: When you run a model, it is to compete with models from competitors in the segment. Governments Through their regulations, governments play an important role in defining the characteristics of automobiles. Indeed, to be allowed to be manufactured, a model must pass many tests, and meet many standards. However, these standards differ from country to country, and change over time. [...]
[...] ¬ Growth opportunities in the derived benefits such as after-sales and maintenance. ϖ Opportunities ¬ Emerging markets are bearish: Emerging markets, like PECO, Africa / Middle East and Latin America now offer interesting perspectives. Manufacturers are turning to these new markets which have recorded the highest growth in terms of developments. ¬ Growth opportunities in the derived benefits: Indeed, the margins are more important and are often higher than the outright sale of cars. The products derivatives relate everything including parts, interviews, reviews etc . [...]
[...] ) and was forced to react. Those who can reinforce, specialize in making skills essential for manufacturers. Two types of equipment appear to take over their former principals and the latter are small manufacturers whose constraints affect their activities. Chain pressure seems to be reversed in favor of the first-tier especially with embedded multimedia for which future trends will require more skills. Strong rivalry between firms in the automotive sector ( 4.5 ) The automotive sector is made up of rival firms struggling in this area to increase or maintain their competitive position. [...]
[...] Strategic Analysis of RENAULT A. Portfolio analysis activities: ADL Matrix Emergence Growth Maturity Decline Dominant Strong Favorable Tenable Low The competitive position of Renault's SBU of construction and sale of automobile (SBU is good. That is why we have placed it between favorable and strong. Indeed, in a rather fragmented industry where no clear leader emerges, Renault has no leadership in terms of sales, but has a brand and know-how. The life cycle of the automobile is mature; indeed this sector offers few prospects. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
