Renault-Nissan Strategic Analysis - Case Study Example

Comments (1) Cite this document
The strategic analysis performed on the company included SWOT analysis, porters five forces analysis, financial analysis and competitor’s analysis. The four analyses were adequate to address the different strategies of the company and enabled us derive recommendations on how the company can address its problems (Ramaswamy, 2009, p. 2). …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.4% of users find it useful
Renault-Nissan Strategic Analysis
Read TextPreview

Extract of sample "Renault-Nissan Strategic Analysis"

Download file to see previous pages Statement of Problem
The strategic alliance that was signed in 1999 between Renault and Nissan saw the formation of our company. The company has managed to enjoy economies of scale and this has made significant contributions in our company becoming competitive in the market for cars and spare parts. However, our company has been recording poor financial results and this has led to the raising of concerns by shareholders and potential investors (Ramaswamy, 2009, p. 3).
1. SWOT Analysis
The rationale behind the use of SWOT analysis was to identify the strengths, weaknesses, opportunities and threats relative to our company. The analysis on strengths and weaknesses was to identify the internal factors of the company whereas the analysis on threats and opportunities was aimed at identifying the external conditions that influence the performance of the business. Strengths refer to the factors that have enabled the company create competitive advantages in the market whereas the weaknesses refer to the factors that hinder the company from making progress (Ramaswamy, 2009, p. 11). On the other hand, opportunities factors that our company may explore to remain competitive and threats represent the factors that may hinder the company from recording positive performances.
Europe and North America account for more than 60 percent of the market share for motor vehicles whereas Asia accounts for 21 percent. Our company also enjoys a diverse management team that consists of managers from both Nissan and Renault. The strategic alliance has also proven to be instrumental in driving sales and enhancing economies of scales that allow the company to operate at efficient levels. The company Chief Executive Officer has vast experience in the motor industry and has managed to record positive results in almost all of his former positions including Michelin. The company has been recording increasing sales from its subsidiary, Nissan. b. Weakness Nissan has been facing quality problems in its Ohio plant and this has created a bad publicity for the company. The company has also been recording fading profits since 2007 and this was compounded by the fact that the company has been missing its sales targets since 2009 (Ramaswamy, 2009, p. 9). Nissan has also recorded a decrease in its operating margins with its domestic market recording reductions in sales levels. Generally, the company has lost a significant share of the market. In the case of Renault, we have not managed to improve our product line which has led to the ageing of the product line. We also have poor human resource management structures that have led to the company facing increasing demands from unions. c. Opportunity There is a market gap for the production of hybrid vehicles that are environment friendly. In recent times, there has been an increase in the price of fuel and gas hence creating demand for fuel efficient vehicles. Market statistics indicate that the common influencing factor on consumer purchases in fuel efficiency. An increasing number of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Renault-Nissan Strategic Analysis Case Study Example | Topics and Well Written Essays - 2750 words”, n.d.)
Retrieved from
(Renault-Nissan Strategic Analysis Case Study Example | Topics and Well Written Essays - 2750 Words)
“Renault-Nissan Strategic Analysis Case Study Example | Topics and Well Written Essays - 2750 Words”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
novakuphal added comment 7 months ago
Student rated this paper as
I didn’t know how to start my research paper. "Renault-Nissan Strategic Analysis" helped me out a lot! Especially the list of structure was valuable.

CHECK THESE SAMPLES OF Renault-Nissan Strategic Analysis

Renault-Nissan: The Challenge of Sustaining Strategic Change

...Renault-Nissan: The Challenge of Sustaining Strategic Change Renault and Nissan are both automobiles manufacturing and marketing companies. The two companies were facing different challenges and were performing unsatisfactorily at the time of alliance formation. Nissan was facing marketing and financial crisis while Renault lacked engineering and production knowhow. This paper attempts to answer the questions on the rationale for the alliance, the strategic value of the alliance to either side, the key steps involved in executing the alliance and the critical elements that made the alliance...
4 Pages(1000 words)Essay


...Introduction Nissan was always more than just a successful company to Japan. Established in 1933 it became a symbol of industrial perfection in the 1960s attracting lots of other car manufacturer's envious glares. However, things were not always as good for Nissan as they are now. In fact, the company had its hard times in the 1990s, when it was not able to compete with more successful manufacturers like Honda and Toyota. Moreover, the situation was so bad that it was perceived the glorious days of Nissan were gone forever: the firm was "strapped by $22-billion in debt, inflated supplier costs, and new product development that was at a standstill"1. It seemed like no one would be able to...
5 Pages(1250 words)Essay

Nissan Renault and Carlos Ghosn: Optimizing Operations

...and closely integrated suppliers into the design and development process. With this, the company reduced the gap between a model's debut in Japan and its launch in overseas markets. Nissan also looked to its Alliance partner Renault sharing of research, advanced engineering projects and common platforms. The Clio/Twingo/March/Micra/Cube models were the first to share a common platform. These actions allowed Nissan to increase its technological strength and boost research and development output while minimizing the amount of additional resources necessary. 2.5 Focus on Core Business Ghosn stated that the aim of the plan was to grow the company and not to shrink it. To do this,...
6 Pages(1500 words)Case Study

Nissan Skyline

...Being one of the most remarkable Japanese cars, the Skyline has been introduced in a variety of models for over 40 years by now. The introduction of the car happened in 1952 with the Skyline ALSI-1 produced by the Prince Motor Company (the company itself was established in 1952 by the Tama Electric Car Company). Tama changed its name to Prince Motor Company in recognition of the Emperor of Japan Crown Prince Hirohita, and started producing petrol powered instead of electric cars. Prince used an engine designed by Fuji Precision Industries, a company which was established by Nakajima Aircraft Company. In 1954 the two companies were merged together. ( The Nissan Skyline is an intermediate-size...
6 Pages(1500 words)Essay

Renault Vehicle Industries organisational process in responding to market demands can only be achieved through organisational structures, which are well-integrated, less bureaucratic and collectively aligned towards achieving the organisational objectives (Thomson & Strickland 2003). The case study analyses the current issues being faced by Renault Vehicles Industries, (RVI) the French Auto manufacturer with regards to organisational structure and culture. The analysis will take in to account the current status of the organisation and identify the problem areas being encountered at Renault. The insight gained from the analysis will aid in explaining the past background and how the company...
19 Pages(4750 words)Essay

Nissan position and will be able to provide Nissan Europe with backing to compete in the saturated European market. 3) Renault-Nissan Alliance: - The alliance provided considerable advantages to both the companies. With this strategic alliance they can enter into new markets faster and with lower costs because they dont have to build new plants. The companies will work together on building common platforms, components and engines, and each company leads engine design in their area of expertise--Renault in diesel and Nissan in gasoline. And they have increased purchasing power because they buy components for six million cars. The...
17 Pages(4250 words)Essay

Renault-Nissan: The Challenge of Sustaining Strategic Change

...Re: Renault-Nissan: The challenge of sustaining strategic change Executive SummaryNissan was facing tough challenge in regards to meeting customer demands and thereby in gaining on its market share and revenue increments. This fact made it unable to reduce the impact of debt and in rendering dividends to shareholders. Thus the company focused on gaining assistance of Renault to help enhance on its productivity and profitability dimension. The paper in this regard focuses on evaluating the challenging conditions of the company and the changes that the company can bring about to revive its bygone position. In that the paper focuses on conducting an environmental...
8 Pages(2000 words)Case Study


...RENAULT ACQUIRES NISSAN Question 4 Renault is a French owned car manufacturing company which was started in 1945 and started assembling vehicles from1898. It was into manufacturing of airplanes, vehicles, trucks and after the boom in economy after the world war 2 Renault gained a lot of revenue and its sales volume went up to new heights. Being a French company the culture in the company had all its employees united and the management of the employees in those cultures was very easy (Connors and Smith, 2011). After Renault acquired Nissan which was Japanese company there were lots of problems for the management such as language problems,...
3 Pages(750 words)Essay


...Nissan: Nissan Skyline GT-R and Nissan Patrol (SUV) Nissan Motor Company is one of the largest automotive manufacturers in the world today. The company is based in Japan and has a variety of vehicles in that market. It is based in Yokohama, KNG and was started in 1933. Since its inception, Nissan has been able to develop a variety of cars and trucks that serve various private and commercial purposes. Nissan has spread worldwide and claims a sixth position of the largest automaker company in the world. In this essay, a focus on two of Nissan’s products is considered. The Nissan Skyline Gran Turismo Racer...
9 Pages(2250 words)Essay

Nissan Automotive

...shares of Nissan, but it was not contemplating on building Renault’s plant in Japan or shifting its model production in Japanese factories. Alternatively, Renault appointed a star manager, Carlos Ghosn, at CEO’s position in Nissan. Ghosn restructured the company, hence restoring Nissan to profitability (Crooks, 2010). This analysis suggests a simple model for FDI where Nissan as a heterogeneous investor bid to secure the control rights on proposed or existing overseas assets; the formulation is capable of explicitly considering more than two countries or market. The model avails a strategy utilized in bilateral FDI for...
5 Pages(1250 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Renault-Nissan Strategic Analysis for FREE!

Contact Us