Transcript Renault-Nissan S09

Prepared by:
Valeria Kostyan
Ekaterina Sopova
Ekaterina Efimova
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Executive summary
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Answers to case questions
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Conclusion and lessons
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“Freeze” agreement on March 16, 1999
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Product development
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Brand image vis-a-vis customers
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Free capital resources from non-strategic, nocore assets
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Increased investments
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New production lines
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Improvement of manufacturing position
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Increase of capacity utilization
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$109 billion in sales, $4 billion in net profit
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Weak industry players
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Daimler-Chrysler’s failure
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Boundary-spanning leadership
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Company-wide building blocks
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The Nissan Revival Plan
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Building glue between Nissan and Renault
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Communication rituals
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Cross-boundary rotations
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Increase in operating margin
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Restored allure to Nissan tarnished brand
image vis-a vis the customers
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Additional research and development
investment
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Conquered the U.S. market, 1/3 of Nissan sales
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Cultural and corporate differences
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Functional boundaries
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22 entirely new car models
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Innovative car model produced in Brazil
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Company-wide building blocks
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Cross-functional teams
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Nomination Advisory Committee
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Producing Renault cars in Nissan plants
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LCV leader in Western Europe, 14.4% share of
market
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New vehicles
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International expansion, broader brand portfolio
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Global Supply Chain Organization (GSCO) in
2008
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Global brand image
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Focuses on China and Russia, 5% market share
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New markets in India and Brazil
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Aggressive planning strategy
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Importance of a strong ”common glue”
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Don not try to be an alliance of equals
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Create the environment of genuine trust,
mutual loyalty, reciprocity, and low-risk