The document discusses the strategic alliance between Renault and Nissan. It began in 1999 through a cross-shareholding agreement where Renault acquired a 36.6% stake in Nissan. The alliance was formed to gain economies of scale, share technologies and risks, and enter new markets. It combines Renault's strength in Europe and Latin America with Nissan's capabilities in Japan, North America, and Asia. Key to its success has been Carlos Ghosn's leadership and the creation of cross-functional teams between the companies to foster cooperation while maintaining separate brands and identities. The alliance is now the fourth largest automaker globally.

1. The Paradoxical Alliance
Renault-Nissan
Kamran Rashidov
Meltem Altındağ
Punam Raju Khokle
Paola Villanueva

2. CONTENT
• History of Nissan and Renault
• Reasons for the Alliance
 Definition of Strategic Alliance
 Renault and Nissan Alliance
 Objectives of the alliance
 Advantages
• Key reasons behind the successful Alliance.
• Strategic Values of the Alliance.
• SWOT Analysis.
• Recommendation and Conclusions.

3. Brief info about Nissan and Renault
• NISSAN
Established on December 26, 1933
Headquartered in Yokohama, Japan.
Pioneer in the manufacturing of automobiles.
Strong market presence in Japan, North America and
Asia.
• RENAULT
Established on February 25, 1899
Headquartered in Boulogne- Billancourt, France.
Strong distinctive market in Europe and Latin
America.

4. Pessimist Thoughts about
alliance 
• B. Lutz’s comment.(GM’s vice chairman)
• Distant and distinctive national culture,
nationalistic and patriotic cores.
• Two mules don’t make a race-horse.
• Renault to take 51%, even it means assume
Nissan’s debt.

5. Strategic Alliance
• Agreement for cooperation among two or more
independent firms to work together towards common
objectives.
• Not form a new identity to reach their aims but
cooperate while remaining apart and distinct.

6. Renault - Nissan Alliance
• Signed in March 27th, 1999
• Headquartered in Amsterdam, Netherlands - Central
location
• Based on cross-shareholding agreement.
• Renault acquire 36.6% stake in Nissan ( 44.4% in
2003)
• Nissan take a stake of 15% in Renault

7. Alliance advantage
• Being a complementary in geographic scope and skills
 Renault in Europe and Latin America
 Nissan engineering powerhouse in Japan, North
America and Asia
• 2 Global companies linked by cross –shareholdings
• The Renault-Nissan Alliance is the 4th largest global
automaker

8. • Brands Includes: Dacia, Infiniti, Nissan, Renault and
Renault Samsung
• Together, Renault and Nissan ranked as the fourth car
group in terms of worldwide sales
• Significant presence in major world markets (United
States, Europe, Japan, China, India, Russia)
Alliance advantage

9. Alliance objectives
• Renault
Improve products quality
Internationalisation
• Nissan
Reduce Debt
Reduce Cost
• Common Aims:
Economy of Scale (cost reduction thanks to
operational efficiencies and synergies)
Entering in emerging markets
Technology improvement
Sharing risk

10. Alliance successful Factors
• Working step by step.
• Six month living experiment before alliance.
• Working together without prejudices.
• Carlos Ghosn’s role in Nissan Revival Plan. (NRP)
 Ghosn became COO of Nissan in July,1999.
 To prevent misunderstanding; clarified some
terms as “commitment”, “authority”.
• Cross-functional teams in Nissan.
• Cross-company teams between Renault and Nissan.

11. Strategic Values of Alliance
• Strategic Value for Renault:
• Economies of scale
• Sharing of best practices
• Contribution to net result & dividend flow
• Sharing technology
• Strategic Value for Nissan:
• Initial financial input from Renault
• Re-invention of product
• Entering to Europe
• Business Development

12. SWOT Analysis

13. Recommendation & Conclusion
• Pre- strategy cooperation Alliance.
• Work in synergy in a Business Alliance.
• Global scale + Local responsiveness 
BE TRANSNATIONAL.
• Focus on:
Cross - cultural teams.
Transfer knowledge (strengths vs weakness).
Product differentiation (Global  Local).
Share resources and technologies.

14. Recommendations
• Sustain their alliance´s brand name
image.
• Focus on differentiation product strategy
“Electric cars - Zero Emission”
• Standardize a common language.
• Build the plants in order to:
 Decreased high tariff.
 Achieve cost reduction
 Increasing competitive edge.
https://www.youtube.com/watch?v=YppXcl3P274

15. References
• https://en.wikipedia.org/wiki/Renault
%E2%80%93Nissan_Alliance
• blog.alliance-renault-nissan.com.
• http://www.tharawat-
magazine.com/trending/2224-top-10-
largest-car-companies-in-the-world.html?
showall=1