Nissan Renault Case Study

General Motors, the “mother company” has faced many troubles in the past, and surfaced. A research by the National Research Council in the United States has revealed in 1992 that there had many impacts and future impacts in the automotive industry, indeed; it would affect the jobs and the internal economy. However, General Motors understood the threat potential that this and established strategic plans to revert the trend. Furthermore, whether General Motor Company was able to change the trend, and it saw the internal and external factors, prepared a strategic plan, Holden being the first brand in Australia, with at least just the 10 % of the population compared with the USA, the way to get a plan looks easier. In addition, it is easier to see a trend in countries with low population and good policymakers. In 2008 General Motors faced again the limit to bankruptcy. A fierce plan to develop and a new business association with FIAT made that GM avoid the dissolution. Even do all Europe have had a similar crisis( Boudette & Choudhury,

The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.

This recession hits home with the automobile industry. During this current recession GM is facing the possibility of bankruptcy, but is hoping to be helped out by the government. History

This is a case study analysis on Nissan Canada Inc. (NCI) and its plan to move from a “make to stock” to a “make to order” process and the implementation of NCI’s Integrated Customer Ordering Network (ICON). Involved in the implementation of ICON, NCI is faced with several challenges in the conversion of its outdated ordering process to Manugistics, an Enterprise Resource Planning (ERP) system. (Hunter, 2007)

Because Navistar is a major trucking company, they are constantly striving to keep their lead by innovating new technologies within their industry. One of Navistar’s main strengths is the ability to gain strategic alliances with other firms in the industry, not only national, but also international. A strategic alliance is an alliance where two or more firms create a legally independent company to share their resources and capabilities to develop a competitive advantage. These advantages enhance a firm’s marketplace success.

GM has a dreadful strategic alliance with Daewoo Company (GM Daewoo) in South Korea as far as the Asian Pacific market concerned like the case indicated. GM Daewoo has started to increase sales, yet, it needs way to go. GM Daewoo is the low cost production base with its facilities in South Korea and Vietnam for some GM brands such as Hummer and Saturn and Opel of European Operations. The subsidiary made some moves to expand its operations in Europe by purchasing former Uzbekistan and Romania plants of Daewoo and Polish car maker Fabryka Samochodów Osobowych (FSO) (GM Daewo Company overview, Hoovers website, 2010, December 5).

Ghosn’s plan to combine, centralize, and globalize Nissan and Renault’s parts procurement would cut costs by 20 percent! Before this change, Ghosn estimated Nissan’s parts procurement costs were around 10 percent higher than Renault’s. To accomplish his goal, Ghosn had to prove that the precious keiretsu system of Japan was promoting

One of the most spoken and discussed issues in the business world has become establishing the association between the Nissan and Mitsubishi car producers. After the scandal that occurred as the Mitsubishi falsified its fuel-economy tests, the cooperation with Nissan is like a lifeline to the company. Nissan's decision to buy an influential share of Mitsubishi's assets is believed to bring benefits to both participants of the process. While this deal would help the Mitsubishi corporation to improve its image after the cheating scandal, Nissan also expects to increase its profits by using the recognizability of Mitsubishi's brand in the eastern countries. Under the conditions of growing global competition in the automobile industry, the alliance between the large Japanese and European car producers is supposed to radically strengthen the positions of both companies on the market.

The invention of automobiles had been dated long back in history. From that day till now, it had not only made our lives easier but also simpler. From times back then till now many big automobile companies had came into existence, some of them were successful and some were not, thus going out of market and competition. Among them, Porsche and Volkswagen Group(VW) have emerged as one of the world leaders in automobile industry. Through years of hardwork and sheer use of technology and engineering developments, both of these companies have carved a name for themselves in their respective markets. But sometimes, bad management and several areas of conflict arise between two companies that can lead to its downfall. In this case too the CEO of Porsche, just wanted to administer each and everything according to his own ways and rules, but on the other hand the CEO of Volkswagen, even after facing huge loses wanted to continue on with his strategy because he was quite confident about his strategy and clearly had a broader outlook of the scenario. Therefore, due to having different mindsets, there was a conflict between the ideas of two which led to the decline of one of them. These conflicts can be summed up in the following couple of questions:

However, in 2002 the announcement was made by Louis Schweitzer by then the CEO of Renault that Carlos would take the responsibility as the CEO for both Nissan and Renault. In spite of the critics which arose due the cultural differences which were seen as the biggest obstacle for him in managing both French

We will start the external analysis with the PESTEL analysis of the automotive sector followed by the Porter’s five forces analysis and we will end by having a look at the key competitors and competitor pricing.

Let’s focus on the two main mergers selected for this paper and their different outcomes. In 1999 Nissan was ranked at number 2 in the

Along with other Japanese manufacturers, Nissan was successfully competing on quality, reliability and fuel efficiency. By 1991, Nissan was operating very profitably, producing four of the top ten cars in the world.Nissan management throughout the 1990s, however, had displayed a tendency to emphasize short term market share growth, rather than profitability or long-term strategic success. Nissan was very well known for its advanced engineering and technology, plant productivity, and quality management. During the previous decade, Nissan’s designs had not reflected customer opinion because they assumed that most customers preferred to buy good quality cars rather than stylish, innovative cars. Instead of reinvesting in new product designs as other competitors did, Nissan managers seemed content to continue to harvest the success of proven designs. They tended to put retained earnings into equity of other companies, often suppliers, and into real-estate investments, as part of the Japanese business custom of keiretsu investing. Through these equity stakes in other companies, Ghosn’s predecessors (and Japanese business leaders in general) believed that loyalty and cooperation were fostered between members of the value chain within their keiretsu.

In 1972, Daewoo entered the industry when they acquired one half of Saehan Motor Company (Ebert, R., Montoney, M., 2007). However, Saehan was developed as a joint venture between General Motors (GM) and South Korea’s Shinjin Motors (Green, 1992). One of South Korea’s leading automobile assemblers was Shinjin at that time. When Shinjin showed financial troubles, DMC stepped in and acquired half of the company (Green, pg. 7). GM and Daewoo entered into a joint venture that mutually benefitted both companies with the sale of each other’s automobiles in their respective countries. As competition increased in the South Korean automobile industry, GM sold majority of their shares in the joint venture to Daewoo (Ebert, R., Montoney, M., 2007). Though GM and Daewoo’s relationship briefly ended in 1992, GM once again showed renewed interest in Daewoo and completed a takeover of what is now known as GM Daewoo in 2002 when the Korean automaker showed signs of failing (Kirk, 2002). The merger was quite a successful move with a combined domestic and export sales exceeding 1.5 million units in 2006 (Choe, 2006). Kia as well has taken action to sign strategic agreements with Ford (which at the time held a 25% equity stake in Mazda) to supply them with technological know-how and design of facilities to develop their own vehicles (Green, p. 8). Mazda also sent out their

This report complies the analysis of the new strategy for Saab Automobile following its acquisition by Spyker Cars. The report attempts to assess this strategy and its potential success with an evaluation and analysis of the industry, strategy, macro environment, competitive advantage and sustainability of the competitive advantage. Various frameworks were applied in this report, including Porter’s 5 Forces, Strategic group analysis and VRIN analysis. Findings show, that Saab’s new strategy is based on some of the company’s strongest resources, the Brand, technology and expertise in design. This is particularly important as the