Corporate strategy: the French automotive industry, example of Renault
- Describe the French automotive industry and its main features
- Using the RBV framework, how do you appreciate the current strategy of Renault group?
- Identifying its resources
- Identifying and promoting its capabilities
- Determining the sources of competitive edge
- Determining the attractiveness of the industry
- 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.