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Establishment of Renault in Slovenia

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  1. General Aspects
    1. History
    2. Mode of development of Nike
    3. Key figures and developments
    4. General Management
  2. Strategic marketing implemented by Nike
    1. Analysis of the competitive environment of Nike
    2. Application of the PORTER model
    3. Mapping of the different strategic groups
    4. SWOT Analysis
    5. Identification and analysis of key success factors
  3. Analysis of strategies implemented by Nike
    1. Differentiation Strategy:
    2. Diversification strategy

The entry of the PECO in the European Union in May 2004 showed the world that there are opportunities for businesses in this area of the world. However, the process of industrialization and openness to foreign and particularly to the countries of Western Europe was not as recent as early as 1972.

Renault signed an agreement with Revoz factory in Novo Mesto (60 km south-east of Slovenia) in order to settle in the East. Slovenia, is thecountry that has managed its best economic transition and this model now approaches that of the best countries in Western Europe.

What were the difficulties encountered by the company during the relocation? What were the advantages and disadvantages of the latter, and how is it set to change?

This paper will study this issue in three points: first, it will consider the context in which Renault has established itself in Slovenia, then it will see the features of this implementation, and finally it will consider the prospects for the company in Eastern Europe. First, before studying the French establishments in Slovenia, it is necessary to specify the content of the commercial relations between the two countries.

In fact, since 1996, France is the third largest supplier of Slovenia after Germany and Italy (nearly 1 billion euros in 2003, representing a market share of exports of 10.04%). Among Eastern European countries,despite its small size, Slovenia is the third largest customer of France after Poland and Russia, and the fifth largest trading partner in Central Europe.

France, in turn, became the fourth customer of Slovenia. In 1998, exports were around 7.1 billion francs, while imports to France from Slovenia were 5.2 billion francs. The trade balance was 1.8 billion surplus with a rate of 136% coverage.

The main trade flows between the two countries are mainly related to automotive products. Specifically, in 1998, 53% of French exports were related to the automotive sector. This is explained largely by the introduction of Renault in Novo Mesto and the outsourcing of Citroën. In fact, when the independence of Slovenia in June 1991, only three major French companies were present in Slovenia: Renault, Citroen and Bull. Today, the panorama of French companies has expanded.

In 1999,according to the French Economic Expansion Office in Ljubljana, they were thirty in number. Of the thirty, there are nine companies whose production is related to the automotive sector. But there are other major French groups such as Danone, L'Oreal, Publicis, Schneider, Sodhexo and Seita that are also present in Slovenia.

There is no exclusive Slovenian automotive industry within the meaning of the word. When it comes to automotive industry in Slovenia it is known as the foreign companies in Slovenia that are there to build models of cars. Currently, the largest Slovenian company, based in Novo Mesto in the early 60s, is the French car company Renault.

Revoz factory, founded in 1954, is a part of the town of NovoMesto. It is the only automobile manufacturing plant in the country and one of the largest industrial activities.

Tags: Renault, Slovenia, trade between France and Slovenia, presence of French Renault in Slovenia

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