STRATEGY MANAGEMENT

GENERIC STRATEGY: RENAULT - NISSAN

By TEAM: OMEGA: 2

[ RADHAKRISHNAN JAYAKRISHNAN NAIR SWAMINATHAN K SRIRAM ]

GENERIC STRATEGY: Renault Nissan is a most successful joint venture till now with its strategy planning and

other.

Nissan and Renault function differently and they have collaborated with Platform sharing,

engine technology Sharing, Functions (Cost, Distribution) sharing etc.,

Being a complex network to formulate the strategy, Renault Nissan was chosen for the

Generic-Strategy example.

GENERIC STRATEGY:Renault-Nissan

Mass segment: Cost Leadership Renault & Nissan:

Both of the OEM function differently and emphasise on their core competency. After Nissan

Revival plan, they started growing as a Cost Leadership to acquire the market share.

Initiatives for Cost Leadership:

Vehicle Platform sharing with other OEM and with Renault. Reduce the number of Platforms

and make as a Versatile Platform. (Ex: Micra , Pulse)

Targets on emerging markets like India, Vietnam, China for Low cost manufacturing and

capacity.

Work-Hours reduction and Efficiency of work within weekdays ( No Extra Cost for Weekend

jobs)

Manufacturing at the Local Base, but design and modelling with low cost countries support

to reduce the development cost.

Renault and Nissan sharing the technology and cut-down the similar research that was

carried at both ends.

Cross-Badging: Uses other cars to establish itself in few countries. Renault will cross-badge

the Nissan vehicles In India with few modifications in the car. (Ex: Pulse. Nissan Fuga and

Infiniti,etc.,)

Cross - Docking: Optimising the Distribution system in supply chain.

NPS: Nissan Production System by reducing the redundant equipment and man power.

Low-Cost LCV Business target in India

Joint alliance recently with Daimler for Engines and Autovaz(Russian Automobiles) for cross

badging.

Mass Segment: (Product Differentiation): Renault & Nissan:

In the Mass segment the cars ranging from 10 lakhs and above are under differentiation

strategy where both Nissan and Renault involve themselves in Innovation and New Product

development.

High Cost for frontier technologies like Nissan Leaf : Complete Mass segment electric Car

Renault Twigo: Renault Zoe dedicated Electric in Mass Production. Renault are in Innovation

in Engines with High Efficiency and sharing the engines with Nissan with their differentiated

products.

R & D Cost is more and Research involved in making the new features and concepts for

vehicles. Releases new concept vehicles every year to show their competitiveness among

the customers.

Niche Market: (Low Cost: Focus)

Dacia is the most important auto maker in Romania. Its values are: simplicity, robustness

and unbeatable value for money. A large part of its success comes from the emblematic

vehicle: Logan. Dacia is also the group's vector for development in Europe and Euromed

regions.

Niche Market: (Product Differentiation: Focus):

Both Renault and Nissan do the product differentiation by establishing an Unique brand s

like Nissan Infiniti and Renault Samsung. Nissan and Renault have the unique brands for

making luxury segments because the target audience here the premium people who need

Ego/Satisfaction/Social reward and look so exceptional in cars among others.

Nissan - Infiniti:

High Cost for the Manufacturing as the USP is special Wow factors in the cars.

Nissan has established advanced centre for research for the Luxury segment cars for safety,

comfort, styling and Innovation.

Bargaining power of Suppliers are high as they are in making Frontier technologies.

Competition is not much as we have for Cost-oriented OEMs , but still have the greater

threat from established Luxury segments like BMW , Audi ,Subaru etc.,

Cost Optimisation is very less as they dedicate the functions to outperform the competitors in

futuristic technologies.

Renault-Samsung:

Renault owns the Samsung brand for making the Luxury segments of the car.

Renault Samsung Motors (henceforth RSM) maintains a good position within the Korean

automotive market, with its SM5 vehicle continuing to hold its ground against competitors.

Also, RSM is in the phase of changing its products from a Nissan based architecture to a

Renault based one.