INTRODUCTION ------------------------------------------------------------------------------------------------------- 2

CURRENT TRENDS: --------------------------------------------------------------------------------------------------- 2

RENAULT STRATEGY:------------------------------------------------------------------------------------------------- 3

MACRO-ECONOMIC ANALYSIS ------------------------------------------------------------------------------------- 3

PESTLE Analysis...................................................................................................................................................... 3
Political Factors- .......................................................................................................................................................3
Economic factors: .....................................................................................................................................................4
Sociocultural factors: ................................................................................................................................................4
Technological factors: ...............................................................................................................................................4
Ecological factors: .....................................................................................................................................................4
Legal factors: .............................................................................................................................................................4

INDUSTRY ANALYSIS ------------------------------------------------------------------------------------------------- 4

INDUSTRY LIFE CYCLE ANALYSIS: ---------------------------------------------------------------------------------- 5

COMPETITIVE ANALYSIS: -------------------------------------------------------------------------------------------- 5

STRATEGIC RECOMMENDATIONS: -------------------------------------------------------------------------------- 7

CONCLUSION: --------------------------------------------------------------------------------------------------------- 7

REFERENCES: ---------------------------------------------------------------------------------------------------------- 8

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Introduction
Renault is an automotive industry having distinctive competencies on technological knowhow, customer
service and well known engineers. The company’s internal analysis indicates it has great strength in both
the primary and secondary activities for value chain. Although the external industry analysis shows it is
facing a good number of competitors and the industry environment is very competitive and difficult
according to porter’s five forces. The company has been strong in engineering and brand association and
has a decent number of opportunities for future growth. However, the company is also facing some
threats including active competitors and maturity of the industry with some weaknesses.
So, with the current financial position of the company, we have up with a set of recommendations with
corporate, functional and business level strategies to improve the current situation. The corporate level
strategy includes merging with one of its previous competitors and producing future energy driven cars.
Besides, the company will also focus on its existing business model to expand globally. The business
level and functional level strategies are considered in such a way that is consistent with the corporate
strategy. The technological strategies are also considered to improve the situation of the company.
Finally, the changes and adjustments that are needed to maintain in order to implement the strategies
are also considered including the governance structure, control systems, the adaptation of the company
culture and the global strategies.

Current Trends:
Automated driving
One of the major trends in the automotive sector is automated driving. In the future, the connectivity of
intelligent technologies will ensure that, on an increasing number of routes, the task of driving will be
taken over by the vehicle’s electronics. In keeping with our slogan “The Future in Motion,” we are
passionately working on making this vision a reality for all vehicle classes. Will we see resource-efficient
“driverless cars” and how much longer will development take? Find out more about the trend
of automated driving.

Electric mobility
How can we design vehicles to be even more efficient through the increasing connectivity of
electrification and existing power transmission technology as well as the use of software and an
intelligent mix of materials? We are working on sustainable, customized mobility for everyone. One way
to do this is with modular, energy-saving clean mobility solutions for all vehicle classes. Find out more
about electric mobility and the associated ongoing electrification.

Safety
Accidents should be a thing of the past. Given the steadily increasing volume of traffic, the issue of
safety in the automotive industry is becoming a key challenge for society, industry, and politicians.
Discover how Continental is increasing vehicle safety with its products.

Digitalization
Entire industries are changing with and through digitalization, while car drivers are demanding even
more from their vehicles. In addition to vehicle dynamics and consumption, the perceived intelligence,
comfort, and convenience of the car also play a significant role. Cars are even becoming intelligent
enough to understand what drivers want to do by tracking their eye movements. For over 100 years,
Continental has been helping vehicle manufacturers around the world make driving enjoyable not only
in premium and mid-size vehicles but also in small vehicle classes. Find out about Continental’s

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technologies and solutions that contribute to intelligent comfort and convenience systems in cars thanks
to digitalization.

Inform and entertain

Drivers should receive as much information as necessary, but as little as possible. This also includes low-
distraction integration of the latest smartphone functions in all vehicle classes. Continental is therefore
always working on innovative technologies from the field of information and entertainment, with the
aim of ensuring a holistic human-machine dialogue. Find out more about the possibilities
of infotainment in cars, trucks, and two-wheelers.

RENAULT Strategy:
Renault will manufacture solar, electric and electromagnetic car merging with Nissan Car Company. And
they will distribute their car internationally. They will also continue their existing operation by
commercializing electro-magnetic, electric car.
To make successful the corporate level decision, we will take broad low cost strategy and broad
differentiation strategy in the area of business level strategy.
Renault existing corporate strategy is commercializing electro-magnetic, electric car merging with
Nissan. Now, to make successful this strategy, Renault-Nissan will follow broad low cost strategy.
As Renault will merge with Nissan Car Company, they can share their innovation cost, manufacturing
cost, and marketing cost with Nissan which will be good for both companies. They can also increase
their productivity by transferring support activities. They will take only the efficient worker from both
companies to produce those cars which will reduce labor cost.
Nissan already distribute their product globally, so it will less costly for both of them to distribute those
cars globally.
From corporate strategy, we know that to survive in the long run Renault will enter in the developing
countries mostly in Asian countries like China, Bangladesh, India and Middle Eastern countries. Now to
deter entry in the Asian countries Renaults will follow product proliferation strategy. That is why they
are producing different model car at various prices so that all classes of customers become satisfied on
their product.
Now, there is strong competition in Asian market. Indian companies are now making passenger car at
low cost. To manage rivalry in Asian market as well as in global market, Renault will penetrate the
market by heavy advertisement of their product. As Renault has strong innovative skill so they can also
manage their rivalry by developing their product.

Macro-economic Analysis

PESTLE Analysis

The macro environment of the car industry is extensive. Changing macro-economic conditions force
companies to alter their strategies in order to sustain and increase their market share. The automobile
industry is one of the most heavily regulated industries in the world.
Political Factors- Political choices strongly affect car organizations and particularly an organization as
Renault. French open specialists have allowed money for clunkers and Bonus/Malus on lower mission
vehicles which have especially cultivate Renault. Also, a few advances have been conceded by the
French government to French brands (3 billion for Renault).

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Economic factors: Renault’s environment is competitive and oligopolistic. The business climate and the
economic situation are unfavorable. We can watch a deterioration of householders’ purchasing power
and the lower growth market. The French automotive market suffers from overcapacity. In terms of
economy, the development of emerging countries is an opportunity. Nevertheless, this development
corresponds also with the appearance of new competitors.
Sociocultural factors: Customers appear to own changed their perspective against the auto. more and
more European folks are able to purchase affordable automotive. The auto looks to be
popularized however expectations have additionally evaluated. Noted cars have currently less and
fewer hunted for and standing, vogue and luxury aren't needed. Expectations are particularly the
safety and irresponsibleness. Customers are searching for cut back their budget within the automotive
field. The look for product additional thrifty in terms of energy is additionally changing into a priority.
Technological factors: Mechanical condition is continually evolving. Research and development assumes
a significant position in this field. Principle advancements and advances concern the motor of things to
come. Renault settled on the decision of electric autos. These advancements worry just as the method
of creation than items themselves.
Ecological factors: The ecological weakening, the raw petroleum shortage, the discharge of ozone
harming substances is issues that Renault and other car brands need to stand up to the circumstance.
Legal factors: Automobile companies face up to legal constraints relating to safety standards, pollution...
Employment law is also a constraint. However, it may be different according to the country of
implantation.

Industry Analysis
A company’s performance largely depends on the characteristics of the industry in which it belongs and
competes. Renault Car Company falls under automotive industry. Basically Renault is a multinational
company but in our project we only consider the automotive industry of France. The main products of
Renault are passenger car & light commercial vehicle. Porter’s five forces model is a convenient
framework to analyzing industry environment. In our report we follow this model for industry analysis.

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 1. The risk of entry barriers (High): To start a new automotive company, a big large amount of
capital and equipment needed which is very difficult to arrange for any new company. That’s
why risk of entry barriers is high.
2. The intensity of rivalry among established companies (High): The intensity of rivalry among
established companies within this automotive industry are high. There is a strong competitive
struggle between Peugeot, Citroen and Renault to gain market share from each other. There
have also many minor manufacturers in the automotive industry which are trying to do well in
the market.
3. The bargaining power of buyers (High): For the buyers of automobile industry, they have lot of
choices to purchase car from different company. So the bargaining power of buyers is high in
this industry.
4. The bargaining power of supplier (Low): The bargaining power of supplier is low because the
manufacturers of Car Company are in strong position. Manufacturers are able to produce
material to make car rather than taking those materials from the suppliers. Manufacturers can
use machine in the manufacturing process instead of labor. The products that suppliers sell have
substitutes in the market.
5. Threat from Substitute products (High): Transport services are very well in France. The Railway
services, Marine transport, Air travel and public transport facilities are available in France. That
is why Threat from Substitute products is high for automotive industry.

Industry Life Cycle Analysis: The automotive car industry is in a mature stage. The market is totally
saturated, demand is limited to replacement demand, and growth is low or zero. One of the reasons for
this thing is the population growth rate. Every year it is decreasing. In present, growth rate is only 0.4%.
The amount of new customer is also low in the market. In this scenario, all manufacturers are trying to
minimize production cost and building brand loyalty to sustain in the market.

Competitive Analysis:
To realize the positioning of the Renault brand in the market for passenger vehicles we made a mapping
with every different brand that we can find on the European market. It is based on the price and brand
image of Renault.

FERRARI

BMW
MERCEDES

WOLKSWAGEN AUDI

RENAULT

PEUGEOT

CITROEN
NISSAN

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6
Strategic recommendations:

We can wonder whether Renault could be competitive with the Chinese market in the future. Thanks to
its merger with, for instance Dacia, Renault can aim emerging countries but also poor and middle class in
rich and developed countries.
So, Renault has the stuff, the innovation, and the strategy to be received gracefully in new countries.
Nevertheless, Renault tends to forget its own country: France. The brain drain is a chronic phenomenon
in France. Renault is the symbol of the French automobile but also of a worldwide success. Yet, Renault
relocated increasingly in countries where the workforce is weaker. Is it the end of the big company’s
production in developed countries? Emerging countries want to also compete with European and
American multinational and start to close their boundaries to produce themselves their own products.
Renault in the world symbolizes the success of a brand but shows also limits of this rise. The gap
between poor and rich countries, the emergence of Asian countries, the lack of structure in African
countries, and so on, are problems faced by Renault. If we expand our spirit beyond the simple company
that is Renault, we can observe that these problems are ones of major parts of multinational and even
countries in the world.

SWOT Analysis:

Strengths
1. Strong position in European markets
2. A minor debt
3. Independent from production
4. European leader
5. Good brand image
6. Successful Alliance with Nissan and
Mitsubishi
Opportunities
1. Countries growth and very large
market (India for example)
2. Positive synergies with Nissan
3. Ecological sensitivity and
increased demand for ecological
cars
Weaknesses
1. Dependence on the French market
2. Marketing centralized around the
entry-level cars
Threats
1. Increased competition
2. Increase of raw material prices
3. Financing costs are rising
4. Declining purchasing power

Conclusion:
Renault is a famous international brand of automobiles. It is also the largest maker of all electrical
vehicle vehicles in Europe. The brand is focusing on several areas including autonomous driving for
faster growth. Its alliance with Nissan and Mitsubishi has been highly successful and is expected to bring
higher cost savings and profits for the brand in future. Renault must focus upon growing its presence in
the Asian markets including Indian and China. Apart from that it must focus upon exploiting the new
opportunities of marketing and customer engagement brought by all and digital technology.

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References:

Benetasse, M 2015: Renault-Nissan_Strategic_Partnership. In:

https://www.academia.edu/9481293/Renault_Nissan_Strategic_Partnership_A_Multicultural_Analysis_
Summary_The_context_of_the_Strategic_alliance_3
Chram, D (2012): Diversity of Future Mobility - Automotive Landscape 2025. (ed.), Duisburg.
Ghosn, R.-. C., 2012: Renault.com - Strategies. In:
http://www.renault.com/en/groupe/strategie/pages/strategie.aspx
Trends-in-the-automotive-industry. In
https://www.continental-corporation.com/en-us/products-innovation/innovation/trends-in-the-
automotive-industry/trends-in-the-automotive-industry-80330
Renault SWOT Analysis, Competitors & USP
https://www.mbaskool.com/brandguide/automobiles/2145-renault-.html