Renault is a globally renowned automobile group and car maker present in 118 countries with approximately 130,000 employees. The Renault group achieved a turnover of almost 41 million euros in 2007. The Company Renault Freres was created in 1898 by three brothers Louis, Marcel and Fernand. Marcel and Fernand, died soon after the creation of the firm. Marcel died in a car race in 1903 while Fernand died in 1909 following a prolonged illness. This left Louis Renault as the only heir of the company.
Louis Renault had two passions: technological innovation and factories. After getting the first order for 250 taxis in 1905, the Renault factories adopted the system of series production. Louis Renault introduced Taylorism into his factories in order to increase productivity and to ensure the diversification of production.
Renault also participated in the war efforts of France in 1914. The company manufactured trucks, stretchers, ambulances, shells and even the famous FT17 tanks, which contributed to the decisive final victory. By 1919, Louis Renault had become the first private industrialist in France.
What is the strategy of Renault?
Renault Commitment 2009' announced by Carlos Ghosn in 2006 rests on three commitments:
-Quality (robust design, manufacturing compliance, product reliability, quality sales and after sales)
-Profitability with the aim of achieving an operating margin of 6% in 2009
-Growth: sell 800,000 vehicles more in 2009 over 2005
To meet these commitments, Renault formulated a strategy of differentiation through an overhaul of the range. Indeed, the group played the card of differentiation by offering specific products that are recognized and valued by different market segments covered thereby gaining a competitive advantage. Renault's strategy also relies on an international expansion.The alliance concluded between Renault and Nissan in this direction, allowed Renault to speed up the implementation of its own growth strategy in a cost-effective manner.
Renault and Nissan are two independent companies: each retains its own organization, its own objectives and its strategy of profitable growth. However, they must ensure that these strategies are part of an overall and coherent pattern within the bi-national group Renault-Nissan.
The best way to implement the growth strategy faster and more economically is to ensure the strategic coherence of the Renault-Nissan group.
Building on the strengths where they exist, Renault-Nissan is quickly becoming more efficient than if it were acting alone. By sharing resources with Nissan to develop platforms and engines, Renault may, in the same way, focus its technical and financial resources on the renewal of its products. And what is true for Renault holds true for Nissan as well.
In its effort to internationalize, Renault is focusing on the emerging economies, recognizing that much of the population has no access to cars. If Renault has made this choice, it is because the strength of its European base allows it to sustain an effort over the long term. Similarly, Renault has invested in Korea and has also devoted significant resources to the upgrading of Dacia, Romania, to produce a modern vehicle adapted to emerging markets.
Keywords: study of Renault, DAS, analyzing the Renault strategy, cars, activities, competition, internal study, external study, turnover, Renault Espace, Citroen, Peugeot, Fordisme
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