Renault nissan s09

RENAULT - NISSAN: THE PARADOXICAL ALLIANCE

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

Product development

Brand image vis-a-vis customers

Free capital resources from non-

strategic, no-core assets

Increased investments

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

Unanimous pessimism

Weak industry players

Daimler-Chrysler’s failure

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

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

Challenges to successful implementing of the alliance

Cultural and corporate differences

Functional boundaries

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

Results of Renault-Nissan alliance and their current

market position

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

Nissan

Global brand image

Focuses on China and Russia, 5% market

share

New markets in India and Brazil

Aggressive planning strategy

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

Thanks for your attention!!!