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Veille stratégique groupe Renault. FDI – Groupe pound. PLAN. Current close-up of automotive industry Renault’s current situation SWOT Analysis « 3B » Analysis Conquest of the Indian Market. 1. CURRENT CLOSE-UP OF AUTOMOTIVE INDUSTRY. A market shaken by the economic crisis...
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Veille stratégiquegroupe Renault FDI – Groupe pound
PLAN • Current close-up of automotive industry • Renault’s current situation • SWOT Analysis • « 3B » Analysis Conquest of the Indian Market
1. CURRENT CLOSE-UP OF AUTOMOTIVE INDUSTRY A market shaken by the economic crisis... • Restructuring of « mature » markets (Europe and North America) • 500-600 cars/1000 habitants • New target: Less oil consumption and less CO2 emissions • American companies survives thanks to direct aids, Europe thanks strategic aids • Development of « new » markets • China: • 100 cars/1000 habitants • Massive financial aids from government (30% of crisis aids for automotive industry) • Big stock of Lithium – Electric cars • Exponential economic growth (+8% GDP/capita) and steady growth of automotive infrastructures
1. CURRENT CLOSE-UP OF AUTOMOTIVE INDUSTRY • Development of « new » markets • India • 8 cars/1000 habitants and big growth on purchaising power • 10 years late compare to China • Less focus on export (13-17% of production) • Little cars • Forecasts: +12-14%/year production increase to 2016 • Russia • 2007: Expert global agreement say Russia will overtake Germany • 2009: -55% car sales • AvtoVAZ, incontested market leader, touched the stoppage of payment last month (CA – 46%, 50 000 job loss forecasted)
2. RENAULT’s current situation - brands • DACIA 1999: Renault buy Dacia, first rumain manufacturer and modernize their factories. • Key values: Simplicity, Modernity and Robustness bound to inedit report quality/price. • Renault Samsung Motors 2000: Renault take back Samsung Group brand and become first european manufacturer based on south-corean market. • Renault Samsung Motors become a success example in a country close to foreign investments
2. RENAULT’s current situation - brands • Renault – Nissan Merger March 1999: Renault – Nissan become the first partnership between European and Japanese companies. • This cooperation don’t stop strengthening in all the domains, of the production and the marketing. • Creation of RNPO (Renault Nissan Purchasing Organization) which cover 100% of purchases. • AvtoVAZ Partnership February 2008: AvtoVAZ and Renault get into a new strategic alliance. • AvtoVAZ is the first Russian manufacturer with 23% of share market
3. Analyse S.W.O.T • STRENGTHS • Successful alliances with: • NISSAN 11 year success Company growth profitability (from 4 to 6%) Opens US and Asian markets • DACIA Attracts “lower end” new customers Huge success of models Logan and Sandero • SAMSUNG MOTORS Opens the North Korean market Electric propulsion technology transfer Development of new platforms (QM5/Koleos)
3. Analyse S.W.O.T • STRENGTHS • Carlos Ghosn: a symbolic figure • Leaders on new technologies • Low consumption thermal engines • Electric vehicles
3. Analyse S.W.O.T • STRENGTHS • Efficient cost reduction strategy • -25% between 2007 and 2009 • Strategic choices for new production sites • Tanger : 200 000 vehicles/year from 2012 onwards • Valladolid : Production of the Twizy E • Turkey : Production of the Clio4
3. Analyse S.W.O.T • WEAKNESSES • AvtoVAZ Alliance: A costly failure • A huge lack of cash • Has about 1 billion € of stocks left • Still has about 6 billion €s of loan to reimburse to the government • 2009 Formula 1 season hampers its image • « CrashGate » crisis • Very poor results • Last minute buy by the Genii group • Nearly no presence on the booming Chinese market
3. Analyse S.W.O.T • OPPORTUNITIES • End of crisis ... ? • New growing markets (China, Russia, Brasil, India, ...) • Alternative vehicles = New & Open market • Who will be the first to conquer it?
3. Analyse S.W.O.T • THREATS • Many competitors – Chinese manufacturers on the rise • Possible drop of sales in 2010 due to the end of the “cash for clunkers” scheme Has to maintain high bonuses to sell excessif stock • Customers and gouvernments are more and more demanding • Euro IV and V regulations (ecology and consumption) • Want always more technological • Alliances and changes are going very fast Necessity to be very reactive
4. Analyse « 3B » Invest the Indian market • BUT: • Invest the fast growing and high potential Indian market • 8 vehicles/1000 inhabitants • Veryfastgrowing living standards • 12 to 14% expectedincrease in production until 2016 • BESOINS: • Make an alliance with a local manufacturer • Assess customer needs • Technology transfer • Local production sites • A market exclusively aimed at small Ultra Low Cost cars • BASES: • Highly competitive market (Nano by TATA) • Investments might not payback (Alliance fails, product does not appeal, ...) • Market starting to expand and in constant evolution necessity to keep a close eye on changes
Thank you for your attention Any questions ?