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Analysis of supply and environment for Renault

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The Renault Automotive Group has more than 350 industrial and commercial sites in over 40 countries and 131,879 employees. In 2004, the Group achieved a turnover of 40.7 billion Euros, up 8.4%. The strategy of profitable growth is built on three pillars: competitiveness, innovation and internationalization. It as part of this strategy that a bi-national alliance was constructed with Nissan, which sold 5,785,231 vehicles in 2004, and ranks among the top four global automakers.

The environmental analysis of the Renault Group is as follows: the social environment, demographic environment and legislative environment etc. These will be explained in detail through the course of the document.

The relationship between the automobile and society tend to be paradoxical: on the one hand, they confirm the irreplaceable role of the automobile or even in the mobility of the French, who are less willing to spend on their cars. This is supported more when people have more free time for leisure and thus move more frequently.

At the same time, there emerges a sort of stiffening vis-a-vis the danger and nuisance reports allocated between the automobile and society that tend to be paradoxical: on the one hand, they confirm a common misconception to the car. Thus the traffic jams and parking problems are less tolerated. It's the same for the noise, accidents and, most importantly, damage to the environment (including air pollution).

Pollution in France is mostly attributed to industrial production and to automobile traffic. However, many manufacturers are struggling to avoid the least polluting. That's why they struggle to improve fuel quality, and also strengthen the technical checks on vehicles.
The government is also fighting for the same cause by banning traffic in the city daily to avoid pollution. It has been found that the townspeople have far fewer cars than the rural population.

The lack of traffic accidents is mainly attributed to driver behavior, as the cars being built today are considered safer than what they were 10 years ago. But by contrast the subjective feeling of danger has increased significantly.

Today, the family undergoes many evolutionary changes. Since a number of years, there has been an upsurge in the number of divorces. This has resulted in an increase of stepfamilies and single parent families.

On the other hand, the arrival of the baby-boom is rapidly approaching. The population of seniors is a big part today and they enjoy a strong purchasing power. Most new cars are bought by seniors. They thus become a significant target market for companies that need to be aware of the need to offer products tailored to their specific needs.

The auto market is influenced by rules such as driver's license, credit purchases, speed limits, or even taxes on gasoline. In each country, a highway code specifies the rules of conduct and defines the responsibilities of drivers in case of a traffic accident.

Tags: Renault, history of Renault, automobiles and environment

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