Renault, alliance strategy, strategy selection, Nissan, Mitsubishi, car market, environment, eco-friendly car, electric car, hybrid car, investment, carbon footprint, carbon footprint reduction
Renault has developed around a major axis that is fully reflected in its strategy, optimizing production costs through powerful economies of scale. This has been accentuated by its alliance strategy, particularly with the Nissan group and Mitsubishi, which are increasing production volumes.
One of the most important issues in the car market is related to the environment. This is a great opportunity for companies to produce cars that would be more environmentally friendly.
[...] The market for "green" cars can also be considered as a market niche. Which types of the strategy should be considered - what are the advantages and disadvantages of each? Type (name) Description (decisions) Advantages Disadvantages 1. Concentric diversification This form of diversification consists in creating and selling new products, with identical or different technologies, that will be aimed at new customers. - This allows the company to grow in a way that may not have been possible by following the basic business strategy alone. [...]
[...] Renault's strategy What are the 3 most important conclusions from the strategic analysis of Renault? Renault has developed around a major axis that is fully reflected in its strategy, optimizing production costs through powerful economies of scale. This has been accentuated by its alliance strategy, particularly with the Nissan group and Mitsubishi, which are increasing production volumes. The Renault group still has very little presence in emerging countries, which represent a strong potential in terms of sales volume. The group's efforts are increasingly focused on this type of market, which is offsetting the saturation of the European market. [...]
[...] By attracting another customer base, Renault can conquer new markets. - By diversifying, the company reduces the risk of dependence on one or more markets. Thus, it depends a little less on fluctuations linked to its main market (here the sale of cars) and provides a safety net with additional activities. - By continuing to produce cars, the company will achieve significant economies of scale. In fact, apart from specific investments (technological industrial equipment and research and development), Renault can continue to use the industrial equipment that the company already owns. [...]
[...] We recommend implementing the concentric differentiation strategy. Indeed, the "classic" car market seems saturated, especially in developed countries, which pushes producers to wage price wars between themselves. The conquest of new markets such as emerging countries seems vital to Renault's development. Differentiation, particularly via electric cars, also seems to be a good way for the Renault group to gain new market share. In addition, environmental awareness is increasingly affecting consumers who seem more inclined to consume in a sustainable way. [...]
[...] Conquer the markets of emerging countries with hybrid and electric cars sold at low prices. We set a target of producing an additional 1.5 million vehicles by entering into local partnerships in the countries concerned (China, Russia, India, Brazil and Iran) by 2022. Focus on the recruitment of new talent, with 35,000 people within 3 years, including 5,000 to 6,000 net, taking into account departures. Within three years, we plan to halve diesel engine production in order to relocate these production resources to the group's new activities (electric cars). [...]
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