1. Our industry needs a Disruptive Innovation. That Disruption...is Pistoia 1 IF YOU WANT TO GO FAST, GO ALONE IF YOU WANT TO GO FAR, GO TOGETHER

2. The Renault-Nissan Alliance Group 6, Tut 2, TR 08 Tutor: Mr. Hoang 25 April 2011 Renault-Nissan 2

3. Introduction to Nissan Established in 1933 Was a pioneer in the manufacturing of automobiles Products: Automobiles, Outboard motors, Forklift Trucks Main markets: Japan, United States, Europe, Revenue: 80.92 billion USD Profit: 460 million USD ( 2009) Renault-Nissan 3 25 April 2011

4. Introduction to Renault Is a French automaker Main products: Automobiles, commercial vehicles, financing Revenue: 38.97 billion USD Profit: 3.420 billion USD (2010) Renault-Nissan 4 25 April 2011

5. Strategic Alliance Definition Agreement for cooperation among two or more independen firms to work together towards common objectives Companies in a strategic alliance do not form a new identity to reach their aims but cooperate while remaining apart and distinct 25 April 2011 Renault-Nissan 5

6. Renault- Nissan alliance The alliance between Renault and Nissan was signed on 27th of March, 1999 The Renault-Nissan Alliance is the third largest global automaker Includes: Dacia, Infiniti, Nissan, Renault and Renault Samsung Sold 7.2 million vehicles in 2010 2 global companies linked by cross-shareholdings Significant presence in major world markets (United States, Europe, Japan, China, India, Russia) Renault-Nissan 25 April 2011

7. 7 25 April 2011 Figure 1: Structure of Renault- Nissan alliance

8. The objectives achieved of the alliance Renault-Nissan 8 25 April 2011

9. Sales according to the number of vehicles sold(Source: http://www.nissan-global.com/EN/NEWS/2006/_STORY/060130-02-e.html) Renault-Nissan 9 25 April 2011

10. Achievements from the Alliance Third largest global automaker (based on sales for the year 2008) Global market share of 9% (by volume) Significant presence in major world markets (United States, Europe, Japan, China, India, Russia) Renault-Nissan 10 25 April 2011 10

12. Nissan pilots the development of new gasoline engines while Renault focuses on diesel engines

13. Nissan actively participated in the development of the Renault group's first cross-over, which was conceived and designed by Renault, and is manufactured by Renault Samsung Motors in South Korea

14. International development in emerging markets

15. A partnership announced with Bajaj, an Indian manufacturer, to develop an ultra-low-cost vehicle by 2010

16. A partnership with the Russian automaker AvtoVAZRenault-Nissan 25 April 2011 11

18. Unshared components

19. Divergence between engineer teams in implementation methodRenault-Nissan 12 25 April 2011

21. Restructure Nissan => confusion & frustration among workers in NissanRenault-Nissan 13 25 April 2011

22. Rivals’ reactions Toyota Clearly, the Toyota way is something that cannot be imitated and aggressive The Toyota production system is a world standard in manufacturing concepts. The success of the environmentally-friendly hybrid car is proof of Toyota's powerful technical development capability A strong multi-brand strategy centering on profitable sedans Strong domestic sales network that takes advantage of the strength of regional dealers 14 25 April 2011 Renault-Nissan

23. Rivals’ reactions Honda Honda, which shares the same strategy, is not so aggressive. The structure is multinational, between different products, and geographical structure between areas To redirect its North American strategy toward boosting the supply capacity of passenger cars Renault-Nissan 15 25 April 2011

25. For the long term the Alliance adding a third member, a North America automaker

26. Newly presented cars with innovative add-ons

27. By 2013, build 12 asembly and battery factories in the USA, Japan, Portugal, France and Britain => focus on leadership in Electric Vehicles development planRenault-Nissan 16 25 April 2011

28. Recommendations Sustain their alliance’s brand name image Build the plants to decrease high tariff, achieve cost reduction and increasing competitive edge Focus on differentiation product strategy especially on Electric Vehicles Renault-Nissan 17 25 April 2011

29. References Textbook: Crafting & executing strategy (Thomson/ Strickland/ Gamble).McGraw. Hill International edition Renault-Nissan case study Nov 22nd, 2006 Halfway down a long road, Aug 24th, 2001, at www.economist.com/node/757537 http://www.fundinguniverse.com/company-histories/Nissan-Motor-Co-Ltd-Company-History.html http://www.renault.com/en/groupe/l-alliance-renault-nissan/pages/l-alliance-renault-nissan.aspx http://soha.vn/thongtin/kinh-doanh/CBJPE14O/Sap-nhap-va-lien-minh-xu-huong-cua-nganh-o-to-the-gioi.htm http://www.nissan-global.com/EN/COMPANY/PROFILE/ALLIANCE/RENAULT03/ http://www.nissan-global.com/EN/NEWS/2006/_STORY/060130-02-e.html http://www.hoovers.com/company/Nissan_Motor_Co_Ltd/crxksi-1-1njg6y.html http://www.scribd.com/doc/19184434/Nissan-Company