Renault is a famous French vehicle manufacturer, which produces cars, buses, tractors and trucks. Previously known as Société Renault Frères, the company was founded in 1898. Since 2000, the group signed an Alliance with Nissan, the Japanese automaker. Indeed, Renault now holds a stake of 44.4% in Nissan. Each company kept its own corporate culture and brand identity. The alliance Renault-Nissan today represents approximately 10% of the worldwide market placing them after Toyota (the first), General Motors (now the second) and Ford (the third). The aim of this alliance was to help Nissan return to profit and also allow the group to become more competitive and more profitable in the international market, thanks to the reduction of costs and the increase of investments in research and development. Indeed, thanks to Carlos Ghosn, the “Cost-Killer”, the group succeeded in improving its situation durably.
[...] The demand in Japan As said before, the demand is decreasing and people are becoming more and more exacting about the quality of the products. Indeed, Japanese are constantly worried about the security of the cars. Every car must be well equipped so that people can feel that they are in security with the technological improvements sufficient in order to help them. Besides, the steering wheel must be on the right side of the car. Indeed, these are Japanese habits. [...]
[...] Indeed, we know that in Japan, people really appreciate fashion products, which are why the Twingo will be presented as an occidental product that is indispensable to be seen as fashionable. The advantage of the Twingo is that this a little which means that Japanese people won't maybe need a car park. Furthermore, when commercializing the Twingo in Japan, it would also be useful to insist on the quality and the security of the product. Indeed, Japanese people are really worried about that point, which is why we must stress on the quality and the secure aspect of the car. [...]
[...] First of all, the economic conditions in Japan make us understand that the country is in the first three largest economies of the world with $ 4.22 trillion of Gross Domestic Product. In other words, Japan is a wealthy country and ranks 16th in terms of Gross Domestic Product per capita. We can thus suppose that people have a high purchasing power. This power is so high that the consequence is that the inflation is almost 0%. That means that the automaker will not easily increase the prices. [...]
[...] Besides, the market share of the France in Japan reaches more than which means that French companies can have a great opportunity to develop their business there. Most of the French groups, such as AXA, LVMH, Michelin, L'Oréal, BNP Paribas, Sanofi-Aventis and Renault, integrated the Japanese market thanks to subsidiaries. As said before, Renault also concluded a partnership with the Japanese car manufacturer Nissan. This strategy gives an opportunity to Renault to reach more people in Japan. Part I The Japanese market The car industry in Japan In Japan, a lot of car manufacturers are competing on the market. [...]
[...] In other words, the supplier power is rather limited as automaker can influence prices due to the high presence of automotive firms on the market. However, these suppliers are indispensables, which is the reason why they have a relative power. Indeed, car manufacturer cannot build cars without the most important thing: the motor. The threat of the entry of new competitors: The car industry is composed of a lot of major players. Indeed, around the word, there are more than 30 car manufacturers, which sell products all over the world. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
