Scope of Renault and Nissan
Content
Scope of Renault ± Nissan alliance
Coventry university London campus
End of module assignment Submitted to: Adewale Adeyemi From: Umais Shafqat Student ID: 03467017 Subject: Strategy International Business
Course title: Global Business (top up)
Scope of Renault ± Nissan alliance
Scope of Renault- Nissan alliance
Table of contents: 1. Introduction 2. Summary of environmental audit 3. Current state of industry 4. Evaluating current strategy 5. Conclusion 6. List of references 7. Appendices
Scope of Renault ± Nissan alliance
1. Introduction:
y Background: The debt level of Nissan was too high in 1999 and it faced bankruptcy. Nissan was looking for an automotive partner to overcome those crises; Nissan entered in alliance with Renault S.A. of France. The alliance was signed on March 27, 1999, it was a unique partnership of two global companies and they linked by crossshareholding. Renault acquired 36.8 percent of stake in Nissan for $ 5.4 billion. The alliance was based on the principle that both the companies should retain their own identity but will share each other s resources and Nissan recovered quickly under Carlos Ghosn leadership.
y Detail of my work: In this assignment I tried to visualize all those activities and strategies which Renault and Nissan being as Japanese and French are performing since after signing their alliance. I discussed the united agenda of both automotive companies and their criteria of formulating strategies to achieve profitable growth. However, my work also highlights the current state of automotive industry and also its impact on both industries. Lastly after discussing their
Scope of Renault ± Nissan alliance current strategy, I also recommended an alternate strategy and also discussed that how it can boost up Renault and Nissan business by utilizing the knowledge that I gained from studying at Coventry University.
2. Summary of Environmental Audit: y Internal environmental audit: Swot analysis: In the first presentation we discussed key strengths and weaknesses of Nissan and Renault. The strength of Nissan is being as a global brand it enjoys a strong financial position and the international market value of its shares is which kept on increasing. Its management team consists up of experts, competent, experienced employees and environmental friendly technology. The weaknesses are slow decision making procedure, lack of diesel technology and focus more on international market rather than on national market which is against any countries prosperity, government policies, financial transaction and operation. On the other hand the strengths of Renault are European market, strong R&D activities, strong growth prospective, proactive management, modern cars and capitalizing on competitive weakness. The weaknesses are it s not entirely global, declining operating margin and decline market share in sector. The swot analysis is available in appendix 1.A
Scope of Renault ± Nissan alliance After alliance majority of the weakness of Renault are now Nissan s strengths and vice versa and they are complementary to each other in many respects. Value chain: Value chain analysis of Renault-Nissan is made in diagram that is available in appendix 1.C
y External environmental: Pestel analysis: The PESTEL framework provides a comprehensive list of influences on the possible success or failure of particular strategies. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal. (Johnson, Scholes and Whittington 2008:55) In terms of political and legal factors Renault was prevented from competition with Japanese cars from 1992 to 1999. After that period it was the time for Renault to decide whether it will stay in Europe and compete with other automotive car companies or will enter in the global market. Renault made a clever decision and entered in to alliance with Nissan as it will get access to global market and can also prevent competition in Europe with Nissan being its partner. However, in order to discuss the economic factors we will get a support of a diagram which is shown in appendix 1.B In terms of social culture Japanese culture brings number of hurdles for women; however Carlos Ghosn increased number of female employees over the past decades to 8% from 2%. Nissan is now hiring, training, guiding and promoting women for sales and management jobs (Global post 2011)
Scope of Renault ± Nissan alliance As far as technology is concerned Renault and Nissan are making huge investment in research and development. They are cooperating and exchanging their engineering and are working to increase manufacturing of electrical vehicles concerning zero-emission technology.
Porter¶s five forces: Porter s five forces is a framework that influences an industry to form effective business strategy and it helps in analyzing factors that are affecting a business and it is used by expert strategy makers with the other methodology e.g. Swot, Pestel, Value chain and Ansoff matrix etc the result will be a competitive and sustainable business strategy. I apply the porter s five forces on Renault-Nissan in appendix 1.D 3. Evaluating current strategy: y Current state of automotive industry In terms of industry life cycle the automotive industry is severely stroked by the global financial crisis 2008- 2010 and now it s at its worth position ever and for future information about industry life cycle see appendix 1.E These crises terribly affected European and Asian automotive industries as the sales decreased a lot and they suffered huge losses. The energy crises occurred in 2003-2008 prohibited customers from purchasing of sports cars, pickup trucks and other high fuel consumption vehicles. In these circumstances even the U.S. three big automotive companies General Motors, Ford Motor Company and Chrysler faced huge shortage of cash and demanded loan from American government to save themselves from bankruptcy and liquidation. After facing energy crisis it was the time for automotive industry to produce more fuel efficient cars. United States is facing the worst crisis in its automotive sector for the first time in 27 years. As a result of these crisis numbers of employees have lost their jobs. Consumers are not seems to be interesting in buying new cars as their own jobs are may be in hazard.
Scope of Renault ± Nissan alliance The current state of automotive industry caused a devastating effect on suppliers, employees, customers, economic conditions and governments. Theses crisis have brought automotive industry to the edge of disaster and if they don t make any clever strategic actions then the whole industry will collapse in coming months or years. The Renault-Nissan alliance moved into second decade and as working together they tried to bring solutions to the challenges facing by the rest of other automotive industries and even they succeeded up to some extent. The crisis also affected Renault and Nissan business and questioned their alliance as they suffered huge loss in 2008 as it can be seen in diagram given in appendix A.1. But now they are on the path of recovery and it s time for them to strengthen their balance sheets. Nissan is badly affected by earth quake and tsunami on March 11, 2011. As a result of this, all production activities are forced to stop now . (World news co 2010) Other than the global financial crisis now it s time for Nissan to tackle with the problems that are coming as a result of earth quake and it seems that Japan will have to suffer a lot because its infrastructure has been destroyed, foreigners are flying back to their countries, electric grid has got terrible damages, the prices of raw material has been increased, even people are shelter less, investors have a plenty of worries and the stock market of Japan has been crashed immediately after earth quake which means market value of Nissan s will be badly affected by it and it s a disaster for Japan s economy. In terms of Porters five forces Renault and Nissan are well established industries so there is a low threat in case of entry of new industries. Mores over as automotive industry is facing crises so financers feel hesitation to invest in this sector. In terms of suppliers as the Renault and Nissan have established a coordinate purchase department which means their suppliers is same as it is cost effective strategy and also they can get advantage over the competitors who purchases individually. There is a high threat from competitors and their strategy is to capitalize on their weakness to attract customers towards their products. However, competitors like Tata motors that launched a car with a retail price of
Scope of Renault ± Nissan alliance $2500 is also a threat in Indian market and now Ghosn has issued orders to create such kind of cheap cars too.
y Current strategic directions: In order to describe the current strategic direction of Nissan-Renault I am going to use Ansoff product/market growth matrix as it is an instrument that assist the business to resolve their product and market growth strategy. It consists of series of four different directions that ultimately provides assistance in order to form business strategies. The four different alternative directions will get more cleared with the help of following diagram:
Market penetration: A business which sells existing product in existing markets means it is focusing on market penetration in terms growth strategy. It includes advertising, promotion, competitive price strategy in order to increase the market share of existing
Scope of Renault ± Nissan alliance products. Try to make the market unattractive for the competitors and offering incentives to retain and attract more consumers.
Product development: A growth strategy which focuses on introducing new product in current market is known as product development. At this stage the companies needs to introduce, modify and reinvent products by using modern technology. Market development: A business which intends to sell its existing products in to new market is known as market development. In terms of achieving this strategy a company tries to utilize new distribution channels, changes product specifications, targeting new geographical markets and this strategy involves heavy investment and heavy risk.
Diversification: This strategy is the most risky strategy of all mentioned above because here the company launches new product in new market as the company has less experience of new market. Whereas, the focus of Renault-Nissan alliance is now on market penetration strategy as they are trying to increase the market share of their existing vehicles because they don t want to make big changes in terms of technology and products as it will cost very expensive and both Renault and Nissan have all ready faced huge loss during recession period and now they are not keen of taking more risk. Both Renault and Nissan are improving their sales force as they believe that the existing customers are seems to be very interested in purchasing new and improved vehicles. They are making huge investment in terms of marketing and advertisement and they are achieving economies of scale in production of vehicles by utilizing each other production plants. Renault has took a very bold step as few of its vehicles has been identified with some faults and considering the consequences of this matter Renault has announced that it will repair the cars of the existing owners even free of charge. Nissan is insuring all of the safety
Scope of Renault ± Nissan alliance measures. Renault has increased the duration of warranty of cars up to five years, made the insurance procedure simpler, offering lower prices services to customers and it is trying to attract the competitor s customers to purchase their vehicles by offering them more facilities and services.
In year 2010 Renault-Nissan alliance group made a record sale of 7,276,398 units and succeeded to achieve huge global sale and market shares. They are keeping on expanding the production of vehicles and are fighting with competitors in their market for the last 12 years together with successfully. The alliance has announced their strategy to become biggest leader of green vehicles in 2007. The first electric battery vehicles of this project was launched in 2010 and reaming five are in pipeline. However 4 billion Euros were invested in this project.
4. Alternative strategy in relation to current strategy: The current strategy of Renault and Nissan is to focus on new manufacturing plant that was opened in India on 2010 as investing, 1.1 billion U.S $ as it s the top priority of many other foreign organizations because of the immense economic growth of Indian in recent years. It is very cost effective in order to do business in India as they can avail advantages of low labor cost, cheap raw material etc but my concern is that as India is not a politically stabilized country and there is a huge risk to invest in any country where the political system is bureaucratic and inefficient. At the same time it s very difficult to get adjusted in Indian environment. History has proved that the Indian economy, rules and regulations caused hurdles in the way of progress of various foreign companies and many of them have a horror story like northern European companies have. As in many provinces of India Infrastructural development is still far behind there are poor health, education, job and basic necessities of life are available which can ultimately affect productivity of automotive industry. This strategy fulfils the suitability element as economies of scale can easily be achieved in this strategy but achieving of acceptability element seems to be difficult because shareholders and stakeholders are worried about their
Scope of Renault ± Nissan alliance investment as the aim of a firm is to gain the trust and confidence of their stake holders but here the situations seems to be different.
There is a bright alternate option available to Renault and Nissan to establish their manufacturing plants in Malaysia because in past recent years it has made a tremendous growth in terms of industrial sector and it is beneficial for any automotive industry to launch their business in Malaysia as their government policies, rules and regulations do support and plays an important role in the prosperity of a company and even the labor cost is cheap to and even though the strategic importance is also in its location as it is located in Southeast Asia and provide an easy access to Europe, Asia and middle east which means the mobility of manufactured vehicles will be easy and efficient. 5. Conclusion: In terms of considering all the factors mentioned above I concluded that Nissan and Renault should now think a head and in terms of producing typical vehicles now they need to concentrate on fuel efficient vehicles such as electric and hybrid as the world is not getting changed and fuel crisis seems to be getting more worse in recent years so it s time to start planning and forming some modern, developed and efficient strategies. Hybrid cars do cost more than the conventional cars but in long run it saves the consumers resources in terms of getting fuel for their cars. Renault and Nissan needs to introduce new cars in different continents with slightly different features. The most famous hybrid cars are Honda Civic, Honda Insight and Toyota Prius and consumers are interested in buying these cars India, UAE and Malaysia are the great markets for Renault and Nissan to target for launching their hybrid cars as Indian government has announced friendly policies for hybrid car manufacturers and UAE has a great potential for growth of hybrid cars as consumers are demanding for green vehicles. Whereas Malaysian government has removed excuse duty from hybrid vehicles so these cars can be exported to Malaysia too. The next target will be production of hydrogen powered cars
Scope of Renault ± Nissan alliance As my proposed strategy involves related diversification, I am very confident that it will boost up the current business scale of Renault and Nissan up to very high level as the people can save their resources in terms of getting fuel for their cars on the other hand, such environmental friendly vehicles will bring a positive change in the world as the global warming is an alarming situation and my proposal is designed in the light of this factor.
6. List of references: y Cavusgil, S., Knight, G., and Riesenberger, J. (2008) International Business: Strategy, Management and the New Realities. New Jersey: Pearson Prentice Hall y Johnson, G., Scholes, K., and Whittington, R. (2008) Exploring Corporate Strategy: Text & Cases. Harlow: Financial Times Prentice Hall y Magee, D. (2003) Turn around: How Carlos Ghosn Rescued Nissan : Hoper Collins Publishers y World news co (2010) Factories of Nissan damage due to earth quake [online] available from<http://www.worldnewsco.com/4218/factoriestoyota-honda-nissan-damaged-due-earthquake/> [16 March 2011] y Slide share (2011) case study of Renault-Nissan alliance [ online] available from <http://www.slideshare.net/eonemo/renaultnissan-alliance-casestudy>[18 March 2011] y Renault (2011) Alliance facts and figure [online] available from <http.//www.renault.com/en/list/ /alliance-facts-and-figures-2009.pdf> y [20 March 2011] y Nissan [2011] Nissan s tradition [on line] available from <http://www.nissanusa.com/about/corporate-info/biographies.html> [ 22 March 2011] y Global post [2011] Renault-Nissan alliance [online] available from <
Scope of Renault ± Nissan alliance y http://www.globalpost.com/webblog/commerce/coolglobalbiz-carlosghosn-the-cross-cultural-ceo-the-renault-nissan-alliance-and-t> [25 March 2011] y 12 Manage[2011] Industry life cycle image [online] available from < http://www.12manage.com/methods_product_life_cycle.html> [24 March 2011]
7. Appendices:
Scope of Renault ± Nissan alliance Appendix1.A
Appendix1.B
Scope of Renault ± Nissan alliance
Source: Usage graph for net income of Renault and Nissan (Renault 2009)
Appendix 1.C
Scope of Renault ± Nissan alliance
Appendix 1.D
Scope of Renault ± Nissan alliance
Scope of Renault ± Nissan alliance Appendix 1.E
Source: Usage graph for industry life cycle (12manage 2011)
Coventry university London campus
End of module assignment Submitted to: Adewale Adeyemi From: Umais Shafqat Student ID: 03467017 Subject: Strategy International Business
Course title: Global Business (top up)
Scope of Renault ± Nissan alliance
Scope of Renault- Nissan alliance
Table of contents: 1. Introduction 2. Summary of environmental audit 3. Current state of industry 4. Evaluating current strategy 5. Conclusion 6. List of references 7. Appendices
Scope of Renault ± Nissan alliance
1. Introduction:
y Background: The debt level of Nissan was too high in 1999 and it faced bankruptcy. Nissan was looking for an automotive partner to overcome those crises; Nissan entered in alliance with Renault S.A. of France. The alliance was signed on March 27, 1999, it was a unique partnership of two global companies and they linked by crossshareholding. Renault acquired 36.8 percent of stake in Nissan for $ 5.4 billion. The alliance was based on the principle that both the companies should retain their own identity but will share each other s resources and Nissan recovered quickly under Carlos Ghosn leadership.
y Detail of my work: In this assignment I tried to visualize all those activities and strategies which Renault and Nissan being as Japanese and French are performing since after signing their alliance. I discussed the united agenda of both automotive companies and their criteria of formulating strategies to achieve profitable growth. However, my work also highlights the current state of automotive industry and also its impact on both industries. Lastly after discussing their
Scope of Renault ± Nissan alliance current strategy, I also recommended an alternate strategy and also discussed that how it can boost up Renault and Nissan business by utilizing the knowledge that I gained from studying at Coventry University.
2. Summary of Environmental Audit: y Internal environmental audit: Swot analysis: In the first presentation we discussed key strengths and weaknesses of Nissan and Renault. The strength of Nissan is being as a global brand it enjoys a strong financial position and the international market value of its shares is which kept on increasing. Its management team consists up of experts, competent, experienced employees and environmental friendly technology. The weaknesses are slow decision making procedure, lack of diesel technology and focus more on international market rather than on national market which is against any countries prosperity, government policies, financial transaction and operation. On the other hand the strengths of Renault are European market, strong R&D activities, strong growth prospective, proactive management, modern cars and capitalizing on competitive weakness. The weaknesses are it s not entirely global, declining operating margin and decline market share in sector. The swot analysis is available in appendix 1.A
Scope of Renault ± Nissan alliance After alliance majority of the weakness of Renault are now Nissan s strengths and vice versa and they are complementary to each other in many respects. Value chain: Value chain analysis of Renault-Nissan is made in diagram that is available in appendix 1.C
y External environmental: Pestel analysis: The PESTEL framework provides a comprehensive list of influences on the possible success or failure of particular strategies. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal. (Johnson, Scholes and Whittington 2008:55) In terms of political and legal factors Renault was prevented from competition with Japanese cars from 1992 to 1999. After that period it was the time for Renault to decide whether it will stay in Europe and compete with other automotive car companies or will enter in the global market. Renault made a clever decision and entered in to alliance with Nissan as it will get access to global market and can also prevent competition in Europe with Nissan being its partner. However, in order to discuss the economic factors we will get a support of a diagram which is shown in appendix 1.B In terms of social culture Japanese culture brings number of hurdles for women; however Carlos Ghosn increased number of female employees over the past decades to 8% from 2%. Nissan is now hiring, training, guiding and promoting women for sales and management jobs (Global post 2011)
Scope of Renault ± Nissan alliance As far as technology is concerned Renault and Nissan are making huge investment in research and development. They are cooperating and exchanging their engineering and are working to increase manufacturing of electrical vehicles concerning zero-emission technology.
Porter¶s five forces: Porter s five forces is a framework that influences an industry to form effective business strategy and it helps in analyzing factors that are affecting a business and it is used by expert strategy makers with the other methodology e.g. Swot, Pestel, Value chain and Ansoff matrix etc the result will be a competitive and sustainable business strategy. I apply the porter s five forces on Renault-Nissan in appendix 1.D 3. Evaluating current strategy: y Current state of automotive industry In terms of industry life cycle the automotive industry is severely stroked by the global financial crisis 2008- 2010 and now it s at its worth position ever and for future information about industry life cycle see appendix 1.E These crises terribly affected European and Asian automotive industries as the sales decreased a lot and they suffered huge losses. The energy crises occurred in 2003-2008 prohibited customers from purchasing of sports cars, pickup trucks and other high fuel consumption vehicles. In these circumstances even the U.S. three big automotive companies General Motors, Ford Motor Company and Chrysler faced huge shortage of cash and demanded loan from American government to save themselves from bankruptcy and liquidation. After facing energy crisis it was the time for automotive industry to produce more fuel efficient cars. United States is facing the worst crisis in its automotive sector for the first time in 27 years. As a result of these crisis numbers of employees have lost their jobs. Consumers are not seems to be interesting in buying new cars as their own jobs are may be in hazard.
Scope of Renault ± Nissan alliance The current state of automotive industry caused a devastating effect on suppliers, employees, customers, economic conditions and governments. Theses crisis have brought automotive industry to the edge of disaster and if they don t make any clever strategic actions then the whole industry will collapse in coming months or years. The Renault-Nissan alliance moved into second decade and as working together they tried to bring solutions to the challenges facing by the rest of other automotive industries and even they succeeded up to some extent. The crisis also affected Renault and Nissan business and questioned their alliance as they suffered huge loss in 2008 as it can be seen in diagram given in appendix A.1. But now they are on the path of recovery and it s time for them to strengthen their balance sheets. Nissan is badly affected by earth quake and tsunami on March 11, 2011. As a result of this, all production activities are forced to stop now . (World news co 2010) Other than the global financial crisis now it s time for Nissan to tackle with the problems that are coming as a result of earth quake and it seems that Japan will have to suffer a lot because its infrastructure has been destroyed, foreigners are flying back to their countries, electric grid has got terrible damages, the prices of raw material has been increased, even people are shelter less, investors have a plenty of worries and the stock market of Japan has been crashed immediately after earth quake which means market value of Nissan s will be badly affected by it and it s a disaster for Japan s economy. In terms of Porters five forces Renault and Nissan are well established industries so there is a low threat in case of entry of new industries. Mores over as automotive industry is facing crises so financers feel hesitation to invest in this sector. In terms of suppliers as the Renault and Nissan have established a coordinate purchase department which means their suppliers is same as it is cost effective strategy and also they can get advantage over the competitors who purchases individually. There is a high threat from competitors and their strategy is to capitalize on their weakness to attract customers towards their products. However, competitors like Tata motors that launched a car with a retail price of
Scope of Renault ± Nissan alliance $2500 is also a threat in Indian market and now Ghosn has issued orders to create such kind of cheap cars too.
y Current strategic directions: In order to describe the current strategic direction of Nissan-Renault I am going to use Ansoff product/market growth matrix as it is an instrument that assist the business to resolve their product and market growth strategy. It consists of series of four different directions that ultimately provides assistance in order to form business strategies. The four different alternative directions will get more cleared with the help of following diagram:
Market penetration: A business which sells existing product in existing markets means it is focusing on market penetration in terms growth strategy. It includes advertising, promotion, competitive price strategy in order to increase the market share of existing
Scope of Renault ± Nissan alliance products. Try to make the market unattractive for the competitors and offering incentives to retain and attract more consumers.
Product development: A growth strategy which focuses on introducing new product in current market is known as product development. At this stage the companies needs to introduce, modify and reinvent products by using modern technology. Market development: A business which intends to sell its existing products in to new market is known as market development. In terms of achieving this strategy a company tries to utilize new distribution channels, changes product specifications, targeting new geographical markets and this strategy involves heavy investment and heavy risk.
Diversification: This strategy is the most risky strategy of all mentioned above because here the company launches new product in new market as the company has less experience of new market. Whereas, the focus of Renault-Nissan alliance is now on market penetration strategy as they are trying to increase the market share of their existing vehicles because they don t want to make big changes in terms of technology and products as it will cost very expensive and both Renault and Nissan have all ready faced huge loss during recession period and now they are not keen of taking more risk. Both Renault and Nissan are improving their sales force as they believe that the existing customers are seems to be very interested in purchasing new and improved vehicles. They are making huge investment in terms of marketing and advertisement and they are achieving economies of scale in production of vehicles by utilizing each other production plants. Renault has took a very bold step as few of its vehicles has been identified with some faults and considering the consequences of this matter Renault has announced that it will repair the cars of the existing owners even free of charge. Nissan is insuring all of the safety
Scope of Renault ± Nissan alliance measures. Renault has increased the duration of warranty of cars up to five years, made the insurance procedure simpler, offering lower prices services to customers and it is trying to attract the competitor s customers to purchase their vehicles by offering them more facilities and services.
In year 2010 Renault-Nissan alliance group made a record sale of 7,276,398 units and succeeded to achieve huge global sale and market shares. They are keeping on expanding the production of vehicles and are fighting with competitors in their market for the last 12 years together with successfully. The alliance has announced their strategy to become biggest leader of green vehicles in 2007. The first electric battery vehicles of this project was launched in 2010 and reaming five are in pipeline. However 4 billion Euros were invested in this project.
4. Alternative strategy in relation to current strategy: The current strategy of Renault and Nissan is to focus on new manufacturing plant that was opened in India on 2010 as investing, 1.1 billion U.S $ as it s the top priority of many other foreign organizations because of the immense economic growth of Indian in recent years. It is very cost effective in order to do business in India as they can avail advantages of low labor cost, cheap raw material etc but my concern is that as India is not a politically stabilized country and there is a huge risk to invest in any country where the political system is bureaucratic and inefficient. At the same time it s very difficult to get adjusted in Indian environment. History has proved that the Indian economy, rules and regulations caused hurdles in the way of progress of various foreign companies and many of them have a horror story like northern European companies have. As in many provinces of India Infrastructural development is still far behind there are poor health, education, job and basic necessities of life are available which can ultimately affect productivity of automotive industry. This strategy fulfils the suitability element as economies of scale can easily be achieved in this strategy but achieving of acceptability element seems to be difficult because shareholders and stakeholders are worried about their
Scope of Renault ± Nissan alliance investment as the aim of a firm is to gain the trust and confidence of their stake holders but here the situations seems to be different.
There is a bright alternate option available to Renault and Nissan to establish their manufacturing plants in Malaysia because in past recent years it has made a tremendous growth in terms of industrial sector and it is beneficial for any automotive industry to launch their business in Malaysia as their government policies, rules and regulations do support and plays an important role in the prosperity of a company and even the labor cost is cheap to and even though the strategic importance is also in its location as it is located in Southeast Asia and provide an easy access to Europe, Asia and middle east which means the mobility of manufactured vehicles will be easy and efficient. 5. Conclusion: In terms of considering all the factors mentioned above I concluded that Nissan and Renault should now think a head and in terms of producing typical vehicles now they need to concentrate on fuel efficient vehicles such as electric and hybrid as the world is not getting changed and fuel crisis seems to be getting more worse in recent years so it s time to start planning and forming some modern, developed and efficient strategies. Hybrid cars do cost more than the conventional cars but in long run it saves the consumers resources in terms of getting fuel for their cars. Renault and Nissan needs to introduce new cars in different continents with slightly different features. The most famous hybrid cars are Honda Civic, Honda Insight and Toyota Prius and consumers are interested in buying these cars India, UAE and Malaysia are the great markets for Renault and Nissan to target for launching their hybrid cars as Indian government has announced friendly policies for hybrid car manufacturers and UAE has a great potential for growth of hybrid cars as consumers are demanding for green vehicles. Whereas Malaysian government has removed excuse duty from hybrid vehicles so these cars can be exported to Malaysia too. The next target will be production of hydrogen powered cars
Scope of Renault ± Nissan alliance As my proposed strategy involves related diversification, I am very confident that it will boost up the current business scale of Renault and Nissan up to very high level as the people can save their resources in terms of getting fuel for their cars on the other hand, such environmental friendly vehicles will bring a positive change in the world as the global warming is an alarming situation and my proposal is designed in the light of this factor.
6. List of references: y Cavusgil, S., Knight, G., and Riesenberger, J. (2008) International Business: Strategy, Management and the New Realities. New Jersey: Pearson Prentice Hall y Johnson, G., Scholes, K., and Whittington, R. (2008) Exploring Corporate Strategy: Text & Cases. Harlow: Financial Times Prentice Hall y Magee, D. (2003) Turn around: How Carlos Ghosn Rescued Nissan : Hoper Collins Publishers y World news co (2010) Factories of Nissan damage due to earth quake [online] available from<http://www.worldnewsco.com/4218/factoriestoyota-honda-nissan-damaged-due-earthquake/> [16 March 2011] y Slide share (2011) case study of Renault-Nissan alliance [ online] available from <http://www.slideshare.net/eonemo/renaultnissan-alliance-casestudy>[18 March 2011] y Renault (2011) Alliance facts and figure [online] available from <http.//www.renault.com/en/list/ /alliance-facts-and-figures-2009.pdf> y [20 March 2011] y Nissan [2011] Nissan s tradition [on line] available from <http://www.nissanusa.com/about/corporate-info/biographies.html> [ 22 March 2011] y Global post [2011] Renault-Nissan alliance [online] available from <
Scope of Renault ± Nissan alliance y http://www.globalpost.com/webblog/commerce/coolglobalbiz-carlosghosn-the-cross-cultural-ceo-the-renault-nissan-alliance-and-t> [25 March 2011] y 12 Manage[2011] Industry life cycle image [online] available from < http://www.12manage.com/methods_product_life_cycle.html> [24 March 2011]
7. Appendices:
Scope of Renault ± Nissan alliance Appendix1.A
Appendix1.B
Scope of Renault ± Nissan alliance
Source: Usage graph for net income of Renault and Nissan (Renault 2009)
Appendix 1.C
Scope of Renault ± Nissan alliance
Appendix 1.D
Scope of Renault ± Nissan alliance
Scope of Renault ± Nissan alliance Appendix 1.E
Source: Usage graph for industry life cycle (12manage 2011)
