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Renault SA: successful expansion to new frontiers

  • February 2014
  • -
  • MarketLine
  • -
  • 20 pages

Summary

Table of Contents

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Introduction

Renault SA, a French automotive manufacturer, is seeking to geographically diversify its operations in a bid to compensate for a disappointing European market.

Features and benefits

* Analysis of Renault's current market position in Europe and the problems inherent with the market.
* Evaluating Renault's expansion into other markets, and where it has achieved success and the risks of diversifying geographically.
* Analysis of problems facing the automotive industry in the future, and what could be done to rectify.

Highlights

Renault occupies a strong position in its domestic market France. The European car market has suffered in the adverse economic conditions, and the generally developed markets of Western Europe offer little scope for strong expansion. By pushing to geographically diversify their sales, the company can safeguard against malaise in developed markets.
Renault is looking to push beyond and fare better in markets where the prospects are brighter. It has so far enjoyed success in Russia and Brazil, with inroads made into other developing markets. India and China, are also targets, with Renault working to negate current barriers to enter the markets in the future.
Renault is seeking to utilize its existing alliance with Nissan and forge new ones to grow further. It is also diversifying its manufacturing base in an effort to better understand local consumer trends. Further, in an effort to reduce costs in a capital intensive production process, the company will standardize their manufacturing platforms.

Your key questions answered

* Why is Renault looking beyond the European market?
* What is Renault's strategy for expanding into different marikets and how successful has it been?
* What are the threats to Renault's long term expansion?

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