1 / 15

Renault - Nissan: The P aradoxical A lliance

Renault - Nissan: The P aradoxical A lliance. Prepared by: Valeria Kostyan Ekaterina Sopova Ekaterina Efimova. Agenda:. Executive summary Answers to case questions Conclusion and lessons . Reasons behind Nissan’s performance. “Freeze” agreement on March 16, 1999

jacob
Download Presentation

Renault - Nissan: The P aradoxical A lliance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Renault - Nissan: The Paradoxical Alliance Prepared by: Valeria Kostyan Ekaterina Sopova Ekaterina Efimova

  2. Agenda: • Executive summary • Answers to case questions • Conclusion and lessons

  3. Reasons behind Nissan’s performance • “Freeze” agreement on March 16, 1999 • Product development • Brand image vis-a-vis customers • Free capital resources from non-strategic, no-core assets • Increased investments

  4. Advantages of Renault - Nissan alliance • New production lines • Improvement of manufacturing position • Increase of capacity utilization • $109 billion in sales, $4 billion in net profit

  5. Unanimous pessimism • Weak industry players • Daimler-Chrysler’s failure

  6. Carlos Ghosn as a new COO o Nissan • Boundary-spanning leadership • Company-wide building blocks • The Nissan Revival Plan • Building glue between Nissan and Renault • Communication rituals • Cross-boundary rotations

  7. Nissan’s Revival Plan • Increase in operating margin • Restored allure to Nissan tarnished brand image vis-a vis the customers • Additional research and development investment • Conquered the U.S. market, 1/3 of Nissan sales

  8. Challenges to successful implementing of the alliance • Cultural and corporate differences • Functional boundaries

  9. Actions during the 1999-2006 period • 22 entirely new car models • Innovative car model produced in Brazil • Company-wide building blocks • Cross-functional teams • Nomination Advisory Committee • Producing Renault cars in Nissan plants

  10. Results of Renault-Nissan alliance and their current market position

  11. Renault • LCV leader in Western Europe, 14.4% share of market • New vehicles • International expansion, broader brand portfolio • Global Supply Chain Organization (GSCO) in 2008

  12. Nissan • Global brand image • Focuses on China and Russia, 5% market share • New markets in India and Brazil • Aggressive planning strategy

  13. The most important lessons • Importance of a strong ”common glue” • Don not try to be an alliance of equals • Create the environment of genuine trust, mutual loyalty, reciprocity, and low-risk

  14. Thanks for your attention!!!

More Related