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Analysis of the Renault group

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  1. Renault's view from inside
    1. 2007: springboard for 2008
    2. The Renault ? Nissan alliance
    3. Strategy 2008 - 2010
    4. Pricing strategy
    5. Logan: The problem of Logan is the lack of capacity
  2. Renault in the sector
    1. Factors affecting sector for 2008/2009
    2. The competitive environment of Renault
  3. SWOT Analysis
    1. Strengths and Weaknesses
    2. Car Market: Opportunities - Threats

Renault's main founder, Louis Renault, who was born in 1877, was joined in the business by his two brothers Fernand and Marcel. This is the story of a passion for mechanics that quickly differentiated the brothers from others by their innovative thinking and determination to succeed.

Louis Renault had the requisite talent and his brothers supported him in creating the Renault Brothers company in 1899. They started with piling orders for the company's Parisian cabs which were eventually exported to England, the United States and Argentina. After the death of his brothers in 1903 and 1909, Louis was at the helm of control and ventured into the import of the U.S. Ford to increase production.

With the advent of the Great War, Louis Renault was assigned the contract for the manufacture of army tanks. Thus, Renault became the first private vehicle manufacturer in France and was even thanked by the Allies for his contribution to the war efforts. During the two world wars, Louis Renault further diversified his automotive offerings and in its attempt to be the most independent private auto manufacturer, the company then formed into the Societe Anonyme Mills Renault (SAUR). In the years 1935-1938, the social climate deteriorated and Renault emerged as the symbol of working class struggle since the company had to cope with various strikes itself.

It was not until 1994 that the company went in for an initial public offering, but always with the majority of shares being held in the state.
Finally in 1996 the State decreased its shares from 52.97% to 45.87% stake in Renault and that put an end to the state's majority in the company.

Privatized, the company Renault made attempts to catch up by building on the international market. So in 1999, Renault merged an alliance with Nissan, the second Japanese manufacturer. The early 2000s was marked by the takeover of Dacia, the first Romanian carmaker and Samsung Motors aSouth Korean automotive manufacturer.

The automotive market is a highly competitive market and for years one would have seen the dominance of U.S. brands such as the "Big Three" which includes General Motors, Chrysler and Ford. Their joint sales represented approximately 73% of sales worldwide in 1996.

At present trends have reversed to make room for European and Asian manufacturers who want to conquer the world market share.
There is also evidence that many mergers and acquisitions result in an actual market concentration.

The Asian continent has currently one of the strongest potential for development in the next 10 years. Indeed China is to become the first global automotive market.

Currently one can minimize the impact of the arrival of Chinese competition on the European automotive sector since the Chinese cars are technically far behind the firms that are already present.

But with the explosion of low cost cars in recent years, there is concern that consumers feel attracted by vehicles at low prices. For European manufacturers the product is about the quality and the service itself. The challenge in the future is from Chinese competition represented by brands such as Brilliance, Geely or Jiangling.

Tags: Renault, history of the company, rise of Chinese automotive sector

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