Nissan renault alliance


Published on

Published in: Business, Sports, Technology
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Nissan renault alliance

  1. 1. Our industry needs a Disruptive Innovation. That Pistoia<br />1<br />IF YOU WANT TO GO FAST, GO ALONE<br />IF YOU WANT TO GO FAR, GO TOGETHER<br />
  2. 2. The Renault-Nissan Alliance<br />Group 6, Tut 2, TR 08 Tutor: Mr. Hoang<br />25 April 2011<br />Renault-Nissan<br />2<br />
  3. 3. Introduction to Nissan<br />Established in 1933<br />Was a pioneer in the manufacturing of automobiles<br />Products: Automobiles, Outboard motors, Forklift Trucks<br />Main markets: Japan, United States, Europe, <br />Revenue: 80.92 billion USD<br />Profit: 460 million USD ( 2009)<br />Renault-Nissan<br />3<br />25 April 2011<br />
  4. 4. Introduction to Renault<br />Is a French automaker <br />Main products: Automobiles, commercial vehicles, financing<br />Revenue: 38.97 billion USD<br />Profit: 3.420 billion USD (2010)<br />Renault-Nissan<br />4<br />25 April 2011<br />
  5. 5. Strategic Alliance<br />Definition <br />Agreement for cooperation among two or more independen firms to work together towards common objectives<br />Companies in a strategic alliance do not form a new identity to reach their aims but cooperate while remaining apart and distinct<br />25 April 2011<br />Renault-Nissan<br />5<br />
  6. 6. Renault- Nissan alliance<br />The alliance between Renault and Nissan was signed on 27th of March, 1999<br />The Renault-Nissan Alliance is the third largest global automaker<br />Includes: Dacia, Infiniti, Nissan, Renault and Renault Samsung <br />Sold 7.2 million vehicles in 2010<br />2 global companies linked by cross-shareholdings <br />Significant presence in <br />major world markets (United <br />States, Europe, Japan, China,<br />India, Russia) <br />Renault-Nissan<br />25 April 2011<br />
  7. 7. 7<br />25 April 2011<br />Figure 1: Structure of Renault- Nissan alliance<br />
  8. 8. The objectives achieved of the alliance<br />Renault-Nissan<br />8<br />25 April 2011<br />
  9. 9. Sales according to the number of vehicles sold(Source:<br />Renault-Nissan<br />9<br />25 April 2011<br />
  10. 10. Achievements from the Alliance<br />Third largest global automaker (based on sales for the year 2008)<br /> Global market share of 9% (by volume) <br /> Significant presence in major world markets (United States, Europe, Japan, China, India, Russia)<br />Renault-Nissan<br />10<br />25 April 2011<br />10<br />
  11. 11. Achievements from the Alliance (cont.)<br /><ul><li>Combined expertise and technology sharing
  12. 12. Nissan pilots the development of new gasoline engines while Renault focuses on diesel engines
  13. 13. Nissan actively participated in the development of the Renault group's first cross-over, which was conceived and designed by Renault, and is manufactured by Renault Samsung Motors in South Korea
  14. 14. International development in emerging markets
  15. 15. A partnership announced with Bajaj, an Indian manufacturer, to develop an ultra-low-cost vehicle by 2010
  16. 16. A partnership with the Russian automaker AvtoVAZ</li></ul>Renault-Nissan<br />25 April 2011<br />11<br />
  17. 17. Difficulties of Renault-Nissan Alliance<br />Irresponsibility of Nissan staff in working attitude <br />Constraints of 2 design programs<br /><ul><li>Unclear functional requirement
  18. 18. Unshared components
  19. 19. Divergence between engineer teams in implementation method</li></ul>Renault-Nissan<br />12<br />25 April 2011<br />
  20. 20. Difficulties (cont.)<br />Barriers in international markets<br /><ul><li>export restraints, tariffs & European Commission’s new rules</li></ul>Culture differences between 2 companies<br /><ul><li>Japanese are collectivists vs. French are individualists
  21. 21. Restructure Nissan => confusion & frustration among workers in Nissan</li></ul>Renault-Nissan<br />13<br />25 April 2011<br />
  22. 22. Rivals’ reactions Toyota <br />Clearly, the Toyota way is something that cannot be imitated and aggressive<br />The Toyota production system is a world standard in manufacturing concepts.<br />The success of the environmentally-friendly hybrid car is proof of Toyota's powerful  technical development capability<br />A strong multi-brand strategy centering on profitable sedans<br />Strong domestic sales network that takes advantage of the strength of regional dealers<br />14<br />25 April 2011<br />Renault-Nissan<br />
  23. 23. Rivals’ reactions Honda<br />Honda, which shares the same strategy, is not so aggressive.<br />The structure is multinational, between different products, and geographical structure between areas<br />To redirect its North American strategy toward boosting the supply capacity of passenger cars<br />Renault-Nissan<br />15<br />25 April 2011<br />
  24. 24. Prediction for economic change<br /><ul><li> Further market expansion in Europe and growth in Asia, and remain the third position on global sales
  25. 25. For the long term the Alliance adding a third member, a North America automaker
  26. 26. Newly presented cars with innovative add-ons
  27. 27. By 2013, build 12 asembly and battery factories in the USA, Japan, Portugal, France and Britain => focus on leadership in Electric Vehicles development plan</li></ul>Renault-Nissan<br />16<br />25 April 2011<br />
  28. 28. Recommendations<br />Sustain their alliance’s brand name image<br />Build the plants to decrease high tariff, achieve cost reduction and increasing competitive edge<br />Focus on differentiation product strategy especially on Electric Vehicles<br />Renault-Nissan<br />17<br />25 April 2011<br />
  29. 29. References<br />Textbook: Crafting & executing strategy (Thomson/ Strickland/ Gamble).McGraw. Hill International edition<br />Renault-Nissan case study Nov 22nd, 2006<br />Halfway down a long road, Aug 24th, 2001, at<br /><br /><br /><br /><br /><br /><br /><br />