Presentation For Renault

Brief Introduction

Renault is headquartered in Boulogne-Billancourt in France

The Renault corporation was founded in 1899 as Société Renault Frères by and his brothers Marcel and Fernand.

The first Renault car, the Renault Voiturette 1CV, was sold on 24 December 1898. 

In 1903, Renault began to manufacture its own engines

First big sale on 1905 to French Military Organization.

City to City car race in Switzerland reached the fame of the company to whole European continent.

Marcel Renault was killed during a car race accident from Paris to Madrid

Past has passed, What about now?

Today, Renault is one of the biggest European automobile producer in terms of volume.

Renault is 9th biggest automobile producer in the world.

Renault is producing nearly everything which has an engine(e.g. Plane)

Renault is operating in 118 countries nowadays

Renault Employs more than 120 thousands of people

Renault is producing cars on 14 countries and 4 continents

Joint Operations

In 1999 Renault established an alliance with Nissan.

The reason for establishing that kind of alliance was super competetive structure in car manufacturing industry after late 1990’s. Joint operation opened the doors of Asia to Renault and Europe to Nissan.

In 2011 Renault and Nissan had decided to invest 5 billion dollars to hybrid cars within a 4 year period. After that we had seen hybrid Renault Fluence cars through the world popularly.

Hybrid Cars They need bigger attention I think and Renault was the pioneer of this

hybrid car business. They can lead this innovation and sell hybrid cars to world within near future.

There is no CO2 Emmission on Hybrid Cars

Fuel is relatively cheap

In Europe, people are not driving more than 60 kilometers a day with their car for that reason hybrid cars are excellent for Europe continent.

Values, Vision and Mission of Renault

Values

Integritiy

Have a Go

Commitment

United

Passion

Customer Focus

Agility

Values, Vision and Mission of Renault(cont’d)

Integrity

The courage to be honest with their opinions, respectful of others, transparent in the way they work and to be responsible for their actions.

Have a Go

Taking initiative and challenging the way they do things. Striving for breakthrough strategies, excellence and continuous improvement with clear and measurable outcomes.

Commitment.

Being personally accountable to do all they can to deliver maximum results. Demonstrating leadership and self-discipline for unwavering resilience to promised outcomes.

Values, Vision and Mission of Renault(cont’d)

United

They share their objectives, generate strength through trust and transparency and work as a team to deliver results.

Passion

To have belief, be enthusiastic and have an energy and pride in everything they do. (People/Product/Success)

Customer Focus

They exist because of their customers; they keep them in mind in everything they do.

Agility

They are proactive and alert. They focus on opportunities using finite resources, predicting trends and maintaining quality through analysis and data management.

Values, Vision and Mission of Renault(cont’d)

Vision

Renault is a people-centric and innovative company, offering sustainable mobility for all. Central priority is customer satisfaction. Their challenge as a responsible carmaker and pioneer in sustainable mobility for all is to develop broadly affordable mobility offers, create innovative technologies such as zero-emission electric vehicles, and see that raw materials and energy are used frugally.

Values, Vision and Mission of Renault(cont’d)

Mision

Pioneering sustainable mobility for all, once again making the automobile a source of progress mankind.

Renault proposes essential, ingenious, affordable and low CO2

vehicles that improve the quality of life and enable people to move around freely without stress and in safety.

Renault support sustainable economic and social development in our operating territories through actions targeting local communities in the areas of education and access to mobility.

The objective is to make sustainable mobility a driver of global development and progress for everyone.

Macro Environment

Macro environment is said to be the most general layer of the environment.

The PESTEL framework helps us to identify the future trends which might impinge on Renault and therefore identify the key drivers of change.

On the other hand the five forces framework helps to understand how the competitive dynamics within and around the automotive industry are changing.

Political

The firm should be aware with all rules and regulation governing the production of cars, such as fuel efficiency cars which are highly emphasized, vehicle emissions, safety and standard issues should be given priority.

Economic

Nowadays there is a global economical crisis, and these kind of economical crisis leads people to use second hand automotive, so economy is not on their side, but they are continuing to grow, only the steadiness of this growth get slowed.

Social

Cars is one of agent which pollute environments due to emission of Co2 and noise, large cities, has affected with these emission and lead to diseases related to breath and skin. Many traffic jams which are time consuming, and increasing road accidents.

Legal

The firm should comply with all laws and regulation with its operations, such as gas emission laws, safety and standard issues, vehicles regulations, compatibility spares manufactures

Technological

Car manufacturers, especially Renault are starting to introduce Alternative Energy Vehicles, which are using electricity only (rechargeable batteries), fuel cell, hydrogen, solar or hybrid. Despite of its expensiveness it will be solution to energy efficiency and lowering pollution. Other technologies such as synthetic materials, web procumbent technologies, JIT Management, advanced logistics computer-aided design software, increase efficiency and save money.

Environmental

Environment pollution, is one of challenging issues threating the world, car manufactures should pay attention in it issues, by transforming their technology into alternative energy vehicles, reduce emissions

Today's customers are ones of victims of Co2 emissions, hence in a future customer will prefer alternative energy vehicles to preserve the environments.

Renault is one of the biggest companies who cares much for the environment.

Porter’s Five Forces

Threat of New Entrants

Threats of Substitutes

Bargaining power of buyers

Bargaining power of Supplier

Competitive Rivalry

Rivalry among

competitors - High

Buyer power - High

Supplier power - Medium

Threat of new entrants

Low

Threat of substitutes -

Medium

Objectives and Goals

The current position is not durable, Renault is conscious that the automobile industry has reached the point of no return : inequality on security, pollution, the absolute necessity to reduce CO2 emissions, conservation of natural resources.

Renault proposes essential, ingenious, affordable and low CO2 vehicles that improve the quality of life and enable people to move around freely, without stress and in safety so in today, with the alliance that was made with Nissan, a program called, Nissan Green Program 2016.

Nissan Green 2016

Nissan Green Program 2016

The strategy takes in new hybrid, pure-electric and fuel cell vehicles over the next five years, in order to reduce carbon dioxide emissions by 20 per cent compared to 2005/6 levels, on the way to an 80 per cent cut by 2050.

Goals of Renault Nissan Alliance

Renault - Nissan Alliance

Renault-Nissan alliance sets 1.5m EV target by 2016, The aim is to move EVs from the fringes to mass-market acceptance, as the unit price for expensive parts like the lithium-ion batteries falls while the worldwide infrastructure needed to serve electrification improves.

MAIN SBU'S OF RENAULT

1-Automobiles

-Daily use

-Performance

-Electric automobiles

2-Commercial Vehicles

3-Renault 2

Renault 2 is the second hand car service that provided by Renault that only includes Renault mobiles.

MARKETING PLAN OF THE SBU

AUTOMOBILES

Daily use

Providing perfect quality, safety, innovative and new technology, environment friendly, comfortable and attractive automobiles to satisfy the families, individuals or any type of costumers' desires with affordable prices.

Performance

Providing the highest performance for the most affordable prices for the performance-sport fans.

Electric Automobiles

Directing the automobile use to a more eco-friendly way in the eco-friendly oriented changing world and giving the customers the comfort, ease and safety they search for.

MARKETING PLAN OF THE SBU(Cont’d)

COMMERCIAL VEHICLES

Providing the highest quality, ease and comfort for the different purposes thats been served for each vehicle driver. For example for minivans, providing enough space for the things thats going to be carried and easing the driving and the control for the driver at the same time.

RENAULT 2

Providing the best service and care for the second-hand-purchaser customers by giving test drive chances, annual contols, after sale services of the cars, long story short by creating difference.

SITUATION ANALYSIS

SWOT of Renault

STRENGTH

Wide customer base and loyalty in Europe

One of the Largest automobile group

International market presence with stronghold in the European market

Offers wide variety

Large market, large workforce

Being involved in global motorsport events as teams and sponsors

Strong brand associations (Nissan , Mahindra etc)

SITUATION ANALYSIS(cont’d)

WEAKNESS

Despite European popularity, lacks penetration in Asian and growing markets

Cases of recall of cars slightly affected brand image

OPPORTUNITY

Invest in hybrid and future cars

Develop and sustain strong partnership with national car manufacturers

Extend the distribution and servicing network to increase market penetration

THREATS

Competitive car manufacturers

Innovative features introduced in competitive care which leads to product differentiation

Competition with national car manufacturers who enjoy increased market penetration as well as brand awareness

Swot Analysis of Renault 2

STRENGTH

Brand image

Break the constraints of time-space and format scales

Reduce costs and improve efficiency

Benefit two-way communication with customers

Facilitate customers to make purchasing decisions

WEAKNESS

Lack of logistics system support

Lack of trading platform and transactions function is imperfect

Swot Analysis of Renault 2(cont’d)

OPPORTUNITIES

Rapid development

A good investment and financing environment

Online shopping market has great potential

The government supports for used cars e-commerce market

 

THREATS

Competition from other operating modes

The relevant laws and regulations are not sound

Online payment security needs to be strengthened

Is there any question?

THE END

THANK YOU FOR TAKING YOUR TIME!