Renault And Nissan A Marriage Of Reason Chinese Chinese Harvard Case Study Analysis

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Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution and Analysis


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis is a widely known worldwide brand name in technology market, established in 1938 by Lee Byung Chul, in South Korea. Renault And Nissan A Marriage Of Reason Chinese Chinese handle large number of product categories consisting of Semiconductors, Telecommunications, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the company's core customers consist of the Original Equipment Manufacturers (OEMs), which used to sell Organization products withtheir own trademark name. Till early 1990s, the core proficiency of Enterprise depend on its low cost offerings than its rivals by manufacturing existing items at economies of scale. Its customer circle includes Original Equipment Manufacturers (OEMs), who used to offer Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis items with their own trademark name. Venture was not simply known outside Korea. There were likewise no or little interest in building the trademark name internationally. Marketing budget plan was controlled by production department with a prime focus on offering low-cost products.During the 1997 Asian Financial Crisis the business almost got insolvent, however with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the top 25 most valuable company in the world. When Kim was worked with as a Chief Marketing Officer in 2000 the company was not even noted. He repositioned Org as an international brand name and educated his divisional managers to understand marketing and its importance. Now their objective is to reach the top 10 by 2005.

Problem Statement

Enterprise's transition from an item based to a marketing company is not going as efficiently as planned.Overcoming the unwillingness of divisional managers to integrate marketing efficiently is still a major obstacle. Developing a consistent brand identity throughout the whole world and utilizing marketing strategies that finest fits the local culture is no simple job. The M-net program analysis have actually been actually practical in determining the high and less prospective development locations, but allowance of resources appropriately is not well gotten among the supervisors. There is no agreement amongst the hierarchy relating to the best fit future strategy.
Executive Summary
Situational Analysis

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help efforts for building its trademark name throughout the world was begun after presenting the "new management effort" by Chairman Lee in 1993. The goal was to change Venture from an inexpensive OEM to a high value-added product provider. To make the vision of Corporation a truth, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a rather clear photo in his mind about how Corp can transform from a low end to a high-end item provider. He understood that change can only be done through positioning Org as a business offering high-end items and this could only be done through high level of marketing.

In spite of having a clear vision about how to build Org brand name, with a potential assistance of its executives, Yun dealt with numerous marketing challenges in early years of its efforts.

One of the marketing obstacles for Yun was the perceptions of executives about the worth of marketing. They considered marketing and selling as very same tools and believed that quality products do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous organisation practices, and the current marketing requirement was too much high, the gap was too wider and to fill this space with incorrect perceptions about marketing was quite tough for Yun.

As specified above, marketing focus was really low in previous practices, therefore there were no appropriate marketing budgets for each of the item on the portfolio. There was no marketing planning done for the existing items. Together with it the item series of the business was increasing with the ripening of new product ideas by the R&D sector of Company. Yun had a challenge to carry out marketing preparation and to develop marketing spending plans for existing in addition to for brand-new products from the very start, and this would take a big time.

A huge shift would be needed in existing marketing expenses to develop the Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help brand. This would lead to increased marketing expenditures for Company and could interrupt the administration relating to increased expenditures, as they were reluctant to marketing expenditures previously and an unexpected huge shiftwould make them disturb. This might result in declining executive assistance for international marketing. In this circumstance, Yun faces a challenge for justifying increased marketing expenditures by demonstrating the long term worth of huge marketing expenditures.

Internal Analysis
SWOT Analysis

Venture strengths lie in its huge item portfolio. Business has biggest number of patents in the market with total variety of 15499 patents approved in United States( USP). Large quantity of R&D costs has actually enabled the business to grow its item portfolio at a greater rate than its competitors. Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total revenues.

Another strength of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help is its capability to develop ingenious products at a continuous rate. It significant shows for the innovation and product developing of Venture is that the company has actually received so many awards for its development and item style.

Unlike Apple and other competitors, Venture is focused on producing devices which can be easily incorporated with any kind of open source Os (OS) and software. This provides Venture an edge over Apple gadgets.
Porter's 5 Forces Analysis
Enterprise's capability to produce high end items at low expense of production is also one of the significant strength of Corporation as it enables the company to capture more market by offering quality items with cost control.

Weak points

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis weaknesses are concealed in the business's reliance on outsourcing software application for its gadgets due to business's inability in establishing software application, unlike Sony. Org also has low revenue margins as compare to Apple due to big difference in the rates of Apple and Company with a much lower difference in quality. The diverse focus of the business due to large number of items in its portfolio, lead to the less effective production and make the business unable to charge higher rates like Apple. The company is likewise inefficient in handling its patents and often faces the problem of patent infraction.


Opportunities for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis lie in the growing Smart device market and the company's efficiency in the market. Org presently runs in about 80 nations and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The dynamic market environment of innovation market posture a severe danger on Venture's survival and force the business to spend much of its incomes share on R&D in order to endure in the long run. The market saturation in developed countries i.e. saturation of mobile company is also a huge danger for the company's development in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution offers quality products and has a quite rich portfolio which caters to various sections. The majority of the items are in the leading three of their particular industries. LCD and mobile phones are the biggest items of Corporation, whereas DRAM is also not far behind in comparison of them. Following is the line of product of Organization:

• Laptops.
• Mobile phones.
• Air conditioning system.
• Desktop computer.
• Hard disk drives.
• Washing machines.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help uses both market competitive and market skimming rates techniques for its wide variety of products. In competitive pricing it changes the rate according to the competitors in order to get benefit, whereas, it utilizes market skimming method where the product has actually an included worth and by selling a few items it can reach break-even.


It has one of the best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon and so on. All its products are timely provided to the selling location/ delivered to the customers directly in case of online order.

Vrio Analysis
It wasn't a well-known business beyond Korea until 1993. However the management initiative taken by their CEO has actually pressed them to market more effectively outside the borders and now it has actually entered the league of leading 25 business worldwide in just 9 years. This is an impressive accomplishment despite the ongoing arguments among the managers about embracing marketing practices. It utilizes both offline & online channels of promo to market their items. Paid product advertisements, social promotion and digital ads are uses to develop awareness about Business products.

Worth Chain Analysis.

It's an analytical structure for identifying organisation activities that add value or competitive advantage for the company.

Inbound Logistics.

For its incoming logistics it owns numerous logistics companies as it subsidiaries. It looks after its suppliers and produces an unified relationship with them and even minimized their payment cycles to enhance this relationship further which includes worth to their chain network.


Corp's core competency is its mass producing it produces 90% of its products internal. Divided into three different divisions its operations are particularly IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is maintaining operation hubs worldwide to even more add worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is among the main factors Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis is able to take on Apple. Organization's own Electronic Logitec system plays a major role in the outbound logistics operations. It even performs the tasks of collection of payment, settling insurance claims, etc. on behalf of Enterprise.

Marketing and Sales.

Attracting target customer attention towards the item is done through marketing and sales to communicate with them the worth and competitive benefit the product offers. Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help advertising budget is continually rising given that they started their repositioning worldwide and will continue to do so as they are continuously looking to broaden and invest in high possible growth markets. The budget is invested in occasions, print and media ads, public relations and so on.

Corp Service. Business put their clients on top and continually aim to deliver unmatchable customer care standards. As after sales service is becoming incredibly essential to keep clients pleased and engaged, they even carry out studies through 3rd parties to learn their client's feedback and execute it in the positive method to decrease or if possible totally eliminate their customer problems. By adding a direct assistance line to call them 24 hr they have even more increased the included worth of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis service.


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis has actually diversified market segmentation, based upon its provision of wide variety of items to a great deal of customers. Org target client segments can be divided into 3 categories i.e. Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution IT and Mobile Communications, Corp Customer Electronic Devices and Corp Device options.


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution geographical segmentation is based upon two requirements i.e. area and density. Company serves about 80 countries worldwide with its products provided to Urban in addition to Rural areas of the country. The Enterprise is likewise growing its worldwide existence and the company's versatility in finding its plants encourages global growth of Venture.


The group division of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis is based upon gender, age, life-cycle phase and profession. Corporation produces items that can be used by both females and males. The target clients for Corporation IT and mobile communication items have an age variety of 18-65 with bulk at a young or recently married life process stage. They are mostly students, workers and specialists. Apart from it, Corp Customer Electronics are targeted to a consumer sector with an age range of 25-65. They are primarily specialists and workers. Nevertheless Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help Gadget Solutions are targeted at students, workers and specialists with an age variety of 25-65.


The psychographic division of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution s based upon the social class and the lifestyle of the customer. Company target consumers on the basis of social class are primarily upper middle, middle and working class consumers, as Corporation offer products like cellular phone very little cheaper i.e. Motorola as well as very little costly i.e. Apple. It offers quality products to middle level customers at a slightly high price than others targeting the exact same segment.


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help majority target consumers have special behavioural qualities. It has consumers with an ambitious, fashionable and determined character with moderate level of loyalty towards the brand name. Its consumers have some degree of shift towards other distinguished brand names i.e. Apple. The majority of Business consumers desire quality in addition to expense control. Due to the fact that of its moderate prices with a level of quality, they are brought in towards Venture.

Quantitative analysis.

Sales of Business has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. It has actually likewise lowered its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling classification of Organization with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Due to the fact that of the high overhead cost, earnings/ sales are increasing however net revenue is not increasing accordingly. New expansions and hiring's were the main factor of the boost in the overhead costs, with china presently not offering any earnings to Enterprise, but there is a lot potential in the current market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the business is presently making however long gone are those days when excellent items were offering themselves. Kim has actually already begun to reinforce the marketing activities of Enterprise and really quickly it will become one of its core strength like producing if not much better.



Business operates designs, produces and sell a large portfolio of consumer electronics. It operates in a very competitive environment and has successfully placed itself as the maker of quality products. So, the response is yes.


As, stated previously that Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help operates in an extremely competitive environment, which indicates all the companies have similar products. The response for rarity is no.


Due to the nature of the industry, it is extremely simple for competitors to understand the functionality of the items and quickly make their own designs. Yes, Company is just behind IBM in registering brand-new patents every year, however the advantage is extremely short-term in this industry.


Chairman Lee has totally turn-around Organization, from going practically insolvent during the Asian financial crisis of 1997 to the top 25 company in the world. Absolutely yes there is proper organization in the company and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand spread nearly in every nation worldwide, majority of the environments like USA, Europe, China etc., are really conductive for its operations. However, it faces some political pressures in less developed nations where law and order circumstance is not good. Latin American, African and some Asian countries fall in this classification, where political instability do have an impact on Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis operations.


Buying power of consumers is important for companies like Corporation to prosper and grow. Emerging markets like India, middle-eastern countries etc. offer development opportunities, whereas, due to recession even the customers of developed countries suffer terribly. It is extremely crucial for the business to keep an eye on the ongoing economic circumstance of the nation before getting in the market.


Multinational business have to face numerous social and cultural issues during its operations in a foreign nation. Enterprise has actually likewise faced many issues however have adopted to the regional environments of the majority of the countries remarkably well. It has customized its products, practices, policies etc. appropriately in order to achieve success.


With a yearly expenditure of 2.4 billion dollars in Research & Development, and with consistent innovative item launches, Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis is among the top ingenious companies of the world. With a clear objective to be ahead of the rest when it pertains to technological advancements, Org has risen to the no 25 of the top effective companies of the world.


Each country has their own laws and policies, being a multinational company Organization have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal consequences. It has to study or hire a local law specialist prior to beginning its operations in a specific nation.


With the rising awareness amongst consumers about the ethical & ecological offenses of companies, Venture needs to ensure that it follows all the security guidelines. Ecological damages, ethical misconducts are not appropriate and in some countries the repercussions can be really severe. On the other hand it needs to do some Corporate Social Responsibility practices to show the locals that it cares about their environment and individuals.

Porter's 5 Forces

Risk of Replacement

Risk of substitution for Venture's each item category is quite significant. Factors for high hazard of substitution for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution Smartphone include the existence of high number of suppliers and Market saturation in developed nations, which make the cost of changing for customers almost absolutely no. Along with it, Venture printing solutions items are threatened by the increasing tourist attraction of customers towards cloud storage.

Competition Among Existing Companies:

The rivaly amongst Corporation and its close competitors is extreme. The major factor behind this is the method of market saturation in different number of item classifications, forcing Corp to present more ingenious functions in existing items and brand-new ingenious items to maintain its growth. The significant competitors for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

( Company Sustainability Report, 2016) Supplier's bargaining power for Enterprise is low as Enterprise runs economies of scale and its orders are of prospective size and worth. Due to incapability of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution to build its own software, it has to outsource its software application development to Google, which becomes a prospective provider of software application for Venture, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Market saturation in most of the product categories also make the bargaining power of buyers more intense in for Enterprise. In spite of igh bargaining power Business is quite capable of selling its products at a greater price than much of its rivals, due to high end quality item and a fair brand name image.

Hazard of New Entrants:

Hazard of brand-new entrants for Corporation is quite low. Among the significant aspect for low threat of brand-new entrants is the high competitors in the market. The requirement of big amount of capital to enter in the marketplace is likewise among the prospective barrier to entry. Together with it, requirement of big competence and research study and advancement expenditures for survival in the market likewise make new entrants hesitant to enter in the market. Market saturation is likewise among the barrier of entry in technology market. High bargaining power of providers force the gamers in the market to charge as low prices as possible and this can only be achieved by production efficiency. Brand-new companies, in majority cases, lack the production performance, thus increasing the threats for entrance in the innovation market.

Competitive Analysis

Enterprise's high product diversity supplies it differentiation from its competitors. It is among the three leading brands by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus majority on a single item category with Sony concentrating on customer electronic devices, Nokia on cell phones and Intel on chips, Company had a huge R&D spending on all of its product categories which enable the company to make potential profits from sales of almost all of its products. (See Display) However, due to the broad item variety the business deals with high number of rivals.

The business ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in regards to global market share, among 8 various product classifications. Organization was the global leader in producing DRAM, SRAM and NAND flash chips. Enterprise incomes from chips was less than Intel however its revenues from chips was growing much faster than Intel and has actually grown close to the revenue levels of Intel, as given in the case Display 2.

Together with the chips Enterprise mobile market was also flourishing at a high rate than its competitors i.e. Motorola and Nokia. Corporation's cellular phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with absolutely no sales growth. The significant reson behind Enterprise's high growth despite of higher prices than Nokia and Motorola was the company's high-end quality mobile phone.

Business was likewise profiting from increasing market share of high-end LCDs as given up case Exhibit 3. The significant reason, making the business allow to avail the chance is its mass production at low cost. Sony was the biggest competitor for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis in LCD market, nevertheless, it had also begun joint endeavor with Corp in 2003 for LCD producing, minimizing the competitors for Business.

Porter's Competitive Strategy

Low Expense Leadership technique of porter is fully implemented by Org the method they attain economies of scale by reinforcing their core proficiencies of manufacturing. Even to the point that their competitor SONY chose to form an alliance with them to produce for them, because they were not able to take on them on low expense. Distinction is another method well carried out by Business by constant investment in the R&D and remaining ahead of the competitors. They constantly bring something ingenious and new whether it's a product or a service.


Alternative Option 1

The Chief Marketing Officer (CMO) of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution would develop a brand-new brand name image by targeting the more youthful generation of the specific nation. As, especially cellphones of Corporation are popular amongst the more youthful market.


1. It is the very best method to develop Customer Life time Value (CLV) by producing a long-lasting relationship with clients. Construct commitment through delivering worth and reap the benefits for long-lasting, as research has actually showed it is more affordable to keep current consumers than to draw in brand-new ones.
2. Another pro of this option is that word of mouth spread more quickly among younger individuals and which in turn will bring in brand-new clients for my products.


1. Old clients who were related to Business prior to may not like this brand-new image the business is trying to depict.
2 It will sustain further expenditures to reposition some items and it might not even bring success as the patterns change really quickly among the more youthful group.

Alternative solution 2.

Corp has made manufacturing its core competency for the many part of their company and due to which its managers are not scared to fully step out of their comfort zone. It would be done by organizing training workshops during which value of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment need to be produced internally initially as genuine marketing starts inside the corporation.


1. Its pro will be that all the marketing technique supporters will come out and also the opposite ones.


2. Its con can develop a really unhealthy environment in the office, as individuals frequently withstand modification since they fear it.

Determine the best alternative

Option is the finest as it plainly has more pros because as soon as a Customer Lifetime Worth is developed the business will benefit from it till that consumer is alive and has buying power. Plus, our target customers are the more youthful generation which are bound to live longer than the present old age individuals. Nevertheless, Corporation's primary objective is to create loyalty amongst its clients and make them redeemed it from them and even buy their various products too.

Implementation Plan

• Targeting younger generation through social marketing, creating a link with them like Pepsi make with music. And set the expectations achievable and practical.
• A team including finest marketing and sales professionals need to be assemble, and both views ought to be taken into account prior to securing the resources required to carry out the strategy.
• Thorough communication of the strategy must be done as it is really important for everybody to be on the exact same page to make it work.
• Jobs and timelines must be develop and interacted accordingly to each person accountable.
• The supervisor ought to utilize a dashboard which shows the development of all the jobs which have been done or about to be done and by whom.
• The supervisor must monitor and keep a constant check on the overall and private efficiency.
Since any new trend or policy might come in due to which all the things already planned have actually to be adjusted, • Everybody need to be prepared to adapt midway. It's better to have contingency plans currently prepared.
• At the end of the project the manager need to interact the results and if successful must celebrate with the team.


The M-net program revealed engaging analysis about the low and high development potential locations and how much advertising budget plan should be allocated appropriately. This change the budget allotment of numerous supervisors and various countries were unhappy and argued but the analysis done by the program was accurate and showed figures like The United States and Canada and Russia growth possible merited a 35% allocation while they were receiving 45%. Whereas, China and Europe should be getting 42% but were rather provided 31%. It really helped to fairly distribute the resources and record more clients by investing more on ads on the high development capacity areas of the world.

Its consistent investment in R&D and ingenious practices have actually moved them to new heights but for them its' just the start and they desire to be amongst the leading 3 brand names in the world. Their marketing efforts should be directed towards younger market in the middle of the internal arguments about marketing and must create Consumer Life time Worth as it will not only provide them benefits now however will continue to gain it till the customer life time. As the cost of maintaining the customer is much less expensive than drawing in a new one.