Case study Renault Nissan
- Theoretical presentation of the alliance
- Complementary strategic alliances
- Additive strategic alliances
- Renault and its alliance with Nissan
- Renault - Nissan Alliance
- Question 1: Is the development strategy of Renault relevant?
- The objectives of Renault
- The strategy of Renault
- What do you think Renault's decision to forge an alliance is based on? Identify and evaluate other options.
- The economic incentives for internationalization
- Advantages and Disadvantages of the possibilities of the company
- Assessment: Choosing the alliance
- What do you think of the choice of Nissan as a partner?
- Complementary skills in sales
- Additional resources: the geographic locations
- Diagnostic crossover and value chain
- Evaluate the original terms of the agreement.
- The terms of a balanced alliance
- Imbalances in bargaining: alliance or acquisition "friendly"?
- Make recommendations on the control of the covenant to limit the risk of failure of cooperation.
This study will consist of three parts: The theoretical part will include the reasons why companies decide to merge. The second part briefly presents Renault (in its current context) and its alliance with Nissan. Finally, the third part may respond to questions from the study: Is the development strategy of Renault relevant? Does the choice to use Renault as a partner seem to you to be based on sound judgment? What do you think of the choice of Nissan as a partner?
A strategic alliance is a formal trade cooperation, adopted by mutual agreement between the companies. The alliance partners are pooling, exchange or integrating some of their resources for mutual benefit, while remaining separate entities and totally independent.
To be strategic, an alliance must be of decisive importance for the companies that comprise it, or at least one of them, otherwise it is a simple agreement.
One of the typical characteristics of a strategic alliance is that it often allows companies to do together what they could not do alone,such as launching new products, find new markets for existing products or reduce production costs or operating partners in making their production or operation more efficient.
Strategic alliances take on very different forms. They have considerably evolved and are much relaxed in recent years. Companies can choose an alliance that does on mere trade agreement or a cross-licensing. They can also establish a partnership from more complex agreements, industrial cooperatives or joint ventures with capital stock.
The main difficulty that one encounters when trying to form a successful alliance is to find the right partner. One can see that two major types of strategic alliances are taking place between companies. They are intended to implement the complementarities between the different expertise of partners with a view to international expansion accelerated.
The fundamental characteristic of complementary strategic alliances is highly complementary skills and resources provided by partners.In exploiting this complementarity that companies can become allies to seize opportunities in world markets, although these opportunities would have remained beyond the reach of each partner in isolation.It is in this strategic vision that the alliance between Renault andNissan takes part.
They have, conversely, aim is to reach a critical size by the addition of similar assets and skills. The underlying reason for this type of alliance is that the market may be too small for a profitable automaker reaches only the necessary investment on the life of the product. In other words, one must take some market share to be profitable on the market. The goal becomes more realistic if two powerful rivals form alliance enabling them to reach critical mass by adding their resources and market share.
With this one can say that alliances are complementary to aggressive strategies of conquest, while the additive alliances are with more defensive strategies.
Since 1999, this strategic alliance is a group of two global companies linked by cross-share holdings. Nissan now owns 15% stake in Renault, and Renault owns 44.44% stake in Nissan(including shares and voting rights).
The group is led by a strategic management company: Renault - Nissan bv created March 28, 2002.
In 2003, the fourth largest automotive group global vehicle production. Their ambition for the future is to become a top three global automakers in terms of quality, technology and profitability.
Renault and Nissan have common operating principles.
Tags: Renaultu Nissan strategic alliance, automobile , new marketsT