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Corporate strategy: the French automotive industry, example of Renault

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  1. Describe the French automotive industry and its main features
  2. Using the RBV framework, how do you appreciate the current strategy of Renault group?
    1. Identifying its resources
    2. Identifying and promoting its capabilities
    3. Determining the sources of competitive edge
    4. Determining the attractiveness of the industry
    5. Formulating and implementing the strategy

The French automotive industry is one of the best drivers of the country. Around 2.5 million people have a job directly or indirectly (energy, insurance, advertisement) linked to this activity and it represents 20% of the plus-value industry. This industry is divided into two parts: 66% concerning the construction of cars and 33% the production of equipment. The allocation of resources respects this proportion. Mass-producing is the base of automobile construction. With the diversification of the models, manufacturers have adopted a platform policy that pools the constructions of the elements that cannot see the client. It allows for the reduction of costs.

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