Renault-Nissan Strategic Analysis Case Study Example | Topics and Well Written Essays - 2750 words

Renault-Nissan Strategic Analysis - Case Study ExampleStatement of ProblemThe strategical coalescency that was signed in 1999 between Renault and Nissan saw the formation of our attach to. The bon ton has managed to enjoy economies of scale and this has made satisfying contributions in our company becoming competitive in the market for cars and spare parts. However, our company has been record piteous financial results and this has led to the raising of concerns by contributionholders and potential investors (Ramaswamy, 2009, p. 3). Analysis1.SWOT AnalysisThe rationale john the use of SWOT analysis was to identify the strengths, weaknesses, opportunities and threats relative to our company. The analysis on strengths and weaknesses was to identify the internal factors of the company whereas the analysis on threats and opportunities was aimed at identifying the external conditions that influence the performance of the business. Strengths refer to the factors that prepare enab led the company lay down competitive advantages in the market whereas the weaknesses refer to the factors that hinder the company from making progress (Ramaswamy, 2009, p. 11). On the new(prenominal) hand, opportunities factors that our company may explore to remain competitive and threats represent the factors that may hinder the company from save positive performances.... Europe and North America account for more than 60 percent of the market share for motor vehicles whereas Asia accounts for 21 percent. Our company also enjoys a diverse management team that consists of managers from both Nissan and Renault. The strategic alliance has also proven to be instrumental in driving sales and enhancing economies of scales that allow the company to operate at efficient levels. The company Chief Executive Officer has vast experience in the motor industry and has managed to record positive results in almost all of his former positions including Michelin. The company has been put down in creasing sales from its subsidiary, Nissan. b. Weakness Nissan has been facing quality problems in its Ohio plant and this has created a bad promotional material for the company. The company has also been recording fading profits since 2007 and this was compounded by the fact that the company has been wanting(p) its sales targets since 2009 (Ramaswamy, 2009, p. 9). Nissan has also recorded a decrease in its operating margins with its domestic market recording reductions in sales levels. Generally, the company has lost a significant share of the market. In the case of Renault, we have not managed to improve our product line which has led to the ageing of the product line. We also have scurvy human resource management structures that have led to the company facing increasing demands from unions. c. Opportunity in that location is a market gap for the production of hybrid vehicles that are environment friendly. In recent times, on that point has been an increase in the price of fu el and gas hence creating demand for fuel efficient vehicles. grocery store statistics indicate that the common influencing factor on consumer purchases in fuel efficiency. An increasing number of