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 & Analysis


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis is a popular worldwide brand name in innovation market, established in 1938 by Lee Byung Chul, in South Korea. Renault And Nissan A Marriage Of Reason Chinese Chinese deals in a great deal of product classifications including Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic items. Historically, the company's core customers include the Original Equipment Manufacturers (OEMs), which used to offer Company items withtheir own brand. Till early 1990s, the core proficiency of Business depend on its low rate offerings than its rivals by manufacturing existing items at economies of scale. Its consumer circle includes Original Equipment Manufacturers (OEMs), who used to sell Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help products with their own trademark name. Org was not simply understood outside Korea. There were likewise no or little interest in developing the brand name internationally. Marketing spending plan was managed by production department with a prime focus on supplying inexpensive products.During the 1997 Asian Financial Crisis the company nearly got bankrupt, however with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was noted the top 25 most valuable business worldwide. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even noted. He rearranged Company as a worldwide brand name and informed his divisional managers to understand marketing and its importance. Now their objective is to reach the top 10 by 2005.

Issue Statement

Enterprise's transition from a product based to a marketing company is not going as efficiently as planned.Overcoming the unwillingness of divisional supervisors to incorporate marketing successfully is still a significant obstacle. Creating a consistent brand name identity throughout the entire world and employing marketing techniques that finest fits the regional culture is no simple job. The M-net program analysis have been actually handy in figuring out the high and less prospective growth areas, however allowance of resources accordingly is not well received amongst the supervisors. There is no agreement among the hierarchy regarding the best fit future technique.
Executive Summary
Situational Analysis

Yun had a quite clear photo in his mind about how Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis can change from a low end to a high end product service provider. He knew that improvement can only be done through positioning Venture as a business using high-end items and this might only be done through high level of marketing.

In spite of having a clear vision about how to build Corp brand, with a potential support of its executives, Yun dealt with a number of marketing obstacles in early years of its efforts.

Among the marketing obstacles for Yun was the understandings of executives about the worth of marketing. They thought about marketing and selling as same tools and thought that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous business practices, and the current marketing requirement was too much high, the gap was too broader and to fill this space with wrong understandings about marketing was quite difficult for Yun.

Along with it the item variety of the business was increasing with the ripening of new item concepts by the R&D sector of Corp. Yun had an obstacle to carry out marketing preparation and to develop marketing budget plans for existing as well as for new items from the very start, and this would take a big time.

A huge shift would be required in present marketing expenditures to build the Enterprise brand name. This would result in increased marketing expenses for Corporation and might disturb the administration relating to increased expenditures, as they were hesitant to marketing expenses previously and a sudden huge shiftwould make them disrupt.

Internal Analysis
SWOT Analysis

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis strengths lie in its substantial product portfolio. Corporation has biggest number of patents in the industry with total number of 15499 patents approved in US( USP).

Another strength of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution is its ability to develop ingenious products at a continuous rate. It significant proves for the development and item designing of Corporation is that the business has actually received numerous awards for its development and item style.

Unlike Apple and other rivals, Business is concentrated on producing devices which can be easily incorporated with any type of open source Os (OS) and software. This provides Corp an edge over Apple devices.
Porter's 5 Forces Analysis
Enterprise's capability to produce luxury items at low cost of production is also among the significant strength of Organization as it allows the business to record more market by offering quality products with cost control.


Venture's weak points are hidden in the business's dependence on outsourcing software for its gadgets due to company's failure in establishing software, unlike Sony. Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis likewise has low revenue margins as compare to Apple due to substantial distinction in the rates of Apple and Org with a much lesser difference in quality.


Opportunities for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution lie in the growing Smartphone market and the business's efficiency in the market. Org presently runs in about 80 nations and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia.


The dynamic industry environment of technology industry posture an extreme hazard on Enterprise's survival and require the company to spend much of its incomes share on R&D in order to make it through in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile company is also a big hazard for the business's development in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Corp provides quality products and has a rather abundant portfolio which caters to different segments. LCD and mobile phones are the greatest products of Organization, whereas DRAM is also not far behind in contrast of them.

• Laptops.
• Mobile phones.
• Air conditioning unit.
• Desktop computer.
• Hard disks.
• Washer.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis utilizes both market competitive and market skimming prices methods for its wide range of products. In competitive rates it changes the price according to the competitors in order to gain advantage, whereas, it utilizes market skimming strategy where the item has an included worth and by selling a few items it can reach break-even.


It has among the very best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon etc. All its items are prompt supplied to the selling location/ provided to the clients directly in case of online order.

Vrio Analysis
It wasn't a widely known company outside of Korea up until 1993. However the management initiative taken by their CEO has actually pressed them to market more efficiently outside the borders and now it has actually gone into the league of top 25 business worldwide in just 9 years. This is a remarkable achievement regardless of the ongoing arguments amongst the managers about adopting marketing practices. It uses both offline & online channels of promo to market their products. Paid product ads, social promotion and digital advertisements are uses to produce awareness about Venture items.

Value Chain Analysis.

It's an analytical structure for determining company activities that add worth or competitive benefit for the company.

Inbound Logistics.

It has among the most effective and effective supply chain network and has more than 2700 suppliers across various markets around the world. Nearly 80% of which is based in Asia and the staying all over the world. For its inbound logistics it owns numerous logistics companies as it subsidiaries. It takes care of its suppliers and develops an unified relationship with them and even decreased their payment cycles to increase this relationship even more which includes worth to their chain network.


Business's core competency is its mass producing it produces 90% of its products in-house. Divided into 3 various departments its operations are particularly IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is maintaining operation centers worldwide to further add value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is one of the primary reasons Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis has the ability to take on Apple. Corporation's own Electronic Logitec system plays a major function in the outbound logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Venture.

Marketing and Sales.

Attracting target customer attention towards the product is done through marketing and sales to communicate with them the worth and competitive advantage the product offers. Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help marketing budget is continually growing given that they started their repositioning globally and will continue to do so as they are constantly wanting to invest and broaden in high potential growth markets. The budget plan is invested in occasions, print and media advertisements, public relations etc.

Org Service. Business put their clients at the top and continuously strive to provide unmatchable customer support standards. As after sales service is ending up being exceptionally crucial to keep consumers happy and engaged, they even perform studies through 3rd parties to find out their client's feedback and implement it in the positive method to minimize or if possible totally eliminate their client concerns. By adding a direct assistance line to contact them 24 hr they have even more increased the included value of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution service.


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis has actually diversified market division, based upon its provision of vast array of products to large number of consumers. Corp target consumer sectors can be divided into 3 categories i.e. Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help IT and Mobile Communications, Enterprise Customer Electronics and Company Gadget solutions.


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution geographical segmentation is based upon two requirements i.e. area and density. Venture serves about 80 countries worldwide with its products offered to Urban in addition to Rural areas of the country. The Org is likewise growing its international existence and the business's flexibility in finding its plants motivates worldwide expansion of Enterprise.


The group segmentation of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help is based upon gender, age, life-cycle phase and occupation. Corporation produces products that can be used by both women and males. The target customers for Business IT and mobile interaction products have an age series of 18-65 with bulk at a young or freshly wed life cycle phase. They are mostly professionals, students and staff members. Apart from it, Organization Customer Electronics are targeted to a customer sector with an age variety of 25-65. They are primarily experts and staff members. Nevertheless Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help Gadget Solutions are targeted at students, employees and professionals with an age range of 25-65.


The psychographic division of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help s based upon the social class and the life style of the customer. Organization target customers on the basis of social class are primarily upper middle, middle and working class clients, as Business sell products like mobile phone not much more affordable i.e. Motorola along with very little costly i.e. Apple. It supplies quality products to middle level customers at a somewhat high price than others targeting the exact same section.


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis majority target customers have special behavioural qualities. It has clients with an enthusiastic, fashionable and identified character with moderate level of commitment towards the brand name. Its customers have some degree of shift towards other distinguished brands i.e. Apple. The majority of Venture customers desire quality along with cost control. Because of its moderate costs with a level of quality, they are brought in towards Venture.

Quantitative analysis.

Sales of Business has actually 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 minimized its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling category of Venture with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Earnings/ sales are increasing but net earnings is not increasing appropriately since of the high overhead cost. New growths and working with's were the main factor of the boost in the overhead costs, with china currently not providing any earnings to Company, but there is so much potential in the current market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this choice is based on the objective of Kim to target the more youthful audience and produce a worldwide brand name picture of the business. Whereas, the core strength of the business is presently making but long gone are those days when good items were selling themselves. In the current age marketing is extremely essential and business can not prosper without it. Kim has currently begun to reinforce the marketing activities of Business and very soon it will turn into one of its core strength like manufacturing if not better.



Org runs styles, manufactures and offer a huge portfolio of consumer electronics. It runs in an incredibly competitive environment and has actually effectively positioned itself as the maker of quality items. The response is yes.


As, said previously that Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help runs in a highly competitive environment, which means all the business have similar items. The answer for rarity is no.


Due to the nature of the industry, it is extremely easy for rivals to understand the functionality of the products and quickly make their own models. Yes, Business is only behind IBM in registering brand-new patents yearly, but the advantage is extremely short-term in this market.


Chairman Lee has entirely turnaround Enterprise, from going nearly insolvent during the Asian monetary crisis of 1997 to the top 25 business in the world. Absolutely yes there is proper organization in the business and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread nearly in every nation worldwide, bulk of the environments like U.S.A., Europe, China etc., are really conductive for its operations. It deals with some political pressures in less developed countries where law and order situation is not excellent. Latin American, African and some Asian countries fall in this classification, where political instability do have an effect on Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution operations.


Purchasing power of clients is vital for companies like Venture to grow and be successful. Emerging markets like India, middle-eastern nations and so on provide development opportunities, whereas, due to economic crisis even the customers of industrialized countries suffer terribly. It is extremely crucial for the company to keep an eye on the continuous financial circumstance of the nation prior to getting in the market.


International business have to face various social and cultural issues throughout its operations in a foreign country. Venture has actually also dealt with many issues however have actually adopted to the regional environments of the majority of the nations remarkably well. It has actually customized its items, practices, policies and so on appropriately in order to be successful.


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


Each country has their own laws and policies, being a multinational company Company need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to serious legal repercussions. It has to study or work with a local law expert prior to starting its operations in a particular nation.


With the increasing awareness among customers about the ecological & ethical violations of companies, Corp has to make sure that it follows all the security guidelines. Ecological damages, ethical misconducts are not acceptable and in some countries the repercussions can be really serious. On the other hand it needs to do some Business Social Obligation practices to show the locals that it cares about their environment and individuals.

Porter's 5 Forces

Threat of Alternative

Threat of alternative for Business's each item category is rather substantial. Factors for high risk of alternative for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help Smartphone include the presence of high number of suppliers and Market saturation in industrialized nations, which make the expense of changing for customers practically zero. Along with it, Venture printing services products are threatened by the increasing attraction of customers towards cloud storage.

Competition Amongst Existing Firms:

The rivaly among Venture and its close rivals is intense. The major reason behind this is the approach of market saturation in different number of product categories, forcing Enterprise to introduce more ingenious functions in existing products and new ingenious products to preserve its growth. The significant rivals for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

( Org Sustainability Report, 2016) Supplier's bargaining power for Business is low as Corporation 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 Help to build its own software, it has to outsource its software development to Google, which becomes a possible provider of software application for Organization, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Market saturation in most of the product categories likewise make the bargaining power of purchasers more extreme in for Company. In spite of igh bargaining power Corp 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.

Threat of New Entrants:

Hazard of new entrants for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help is quite low. Along with it, requirement of huge know-how and research and advancement expenditures for survival in the market also make new entrants unwilling to enter in the market. Market saturation is likewise one of the barrier of entry in innovation industry.

Competitive Analysis

Corporation's high product diversity provides it differentiation from its competitors. It is one of the 3 top brand names by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single product category with Sony concentrating on consumer electronics, Nokia on mobile phone and Intel on chips, Company had a huge R&D costs on all of its product classifications which enable the company to earn prospective income from sales of practically all of its products. (See Exhibit) However, due to the broad product range the company faces high variety of rivals.

The company ranks first in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in terms of international market share, among 8 different item categories. Business was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Corp revenues from chips was less than Intel however its revenues from chips was growing quicker than Intel and has actually grown close to the income levels of Intel, as given up the case Exhibition 2.

Along with the chips Business mobile market was likewise thriving at a high rate than its competitors i.e. Motorola and Nokia. Business's mobile phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The major reson behind Corporation's high development despite of greater prices than Nokia and Motorola was the company's high-end quality cell phones.

Business was also profiting from increasing market share of high end LCDs as given up case Exhibition 3. The significant reason, making the business enable to avail the chance is its mass production at low expense. Sony was the biggest rival for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution in LCD market, nevertheless, it had actually likewise begun joint endeavor with Organization in 2003 for LCD manufacturing, minimizing the competitors for Corporation.

Porter's Competitive Method

Low Cost Management strategy of porter is totally carried out by Org the method they achieve economies of scale by enhancing their core proficiencies of manufacturing. Even to the point that their competitor SONY decided to form an alliance with them to produce for them, since they were unable to compete with them on low cost. Differentiation is another method well executed by Org by constant investment in the R&D and staying ahead of the competition. They constantly bring something ingenious and new whether it's an item 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 new brand name image by targeting the more youthful generation of the specific country. As, particularly smart phones of Business are popular amongst the more youthful group.


1. It is the very best technique to construct Consumer Life time Worth (CLV) by producing a long-lasting relationship with clients. Build loyalty through providing worth and reap the benefits for long-lasting, as research has actually revealed it is much cheaper to maintain existing consumers than to draw in brand-new ones.
2. Another pro of this alternative is that word of mouth spread quicker among younger people and which in turn will bring in brand-new consumers for my products.


1. Old clients who were associated with Corp before might not like this new image the business is trying to portray.
2 It will sustain further costs to reposition some products and it might not even bring success as the trends change very rapidly among the more youthful group.

Alternative option 2.

It would be done by setting up training workshops during which importance of marketing will be taught and numbers will be provided. Marketing environment should be created internally first as genuine marketing starts inside the corporation.


1. Its pro will be that all the marketing approach fans will come out and likewise the opposite ones.


2. Its con can create an extremely unhealthy environment in the office, as individuals typically resist modification due to the fact that they fear it.

Recognize the best alternative

Option is the best as it plainly has more pros due to the fact that as soon as a Client Life time Value is constructed the company will benefit from it till that consumer is alive and has purchasing power. Plus, our target consumers are the more youthful generation which are bound to live longer than the present old age people. Nonetheless, Organization's main goal is to create commitment amongst its customers and make them repurchase it from them and even purchase their different items as well.

Implementation Plan

• Targeting more youthful generation through social marketing, developing a link with them like Pepsi do with music. And set the expectations achievable and reasonable.
• A group including best marketing and sales experts should be put together, and both views need to be taken into account prior to securing the resources needed to carry out the strategy.
• Thorough interaction of the strategy need to be done as it is very important for everyone to be on the exact same page to make it work.
• Jobs and timelines must be develop and interacted appropriately to each person responsible.
• The supervisor must use a control panel which shows the development of all the tasks which have actually been done or about to be done and by whom.
• The manager ought to keep an eye on and keep a continuous examine the private and overall performance.
Because any brand-new pattern or policy might come in due to which all the things already prepared have actually to be changed, • Everybody need to be ready to adjust 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 ought to commemorate with the group.


This change the budget plan allotment of lots of supervisors and different nations were unhappy and argued but the analysis done by the program was precise and revealed figures like North America and Russia development possible warranted a 35% allowance while they were getting 45%. It actually helped to fairly distribute the resources and catch more consumers by spending more on ads on the high growth potential regions of the world.

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help is a top 25 company on the planet now and prepares to get ahead of Sony who sits presently at no. 20. Its constant financial investment in R&D and ingenious practices have propelled them to brand-new heights but for them its' only the start and they want to be among the top 3 brand names worldwide. They totally turnaround from practically declaring bankruptcy throughout the Asian Financial Crisis to a world popular brand, understood for quality and innovation. Their worth chain and their core competency their production ability, along-with worldwide brand name image structure have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more growth in China and other emerging markets those numbers will just increase even more in the future. Their marketing efforts should be directed towards younger group amidst the internal arguments about marketing and ought to produce Customer Lifetime Worth as it will not just provide benefits now but will continue to gain it till the consumer lifetime. As the cost of retaining the consumer is more affordable than drawing in a brand-new one.