Renault-Nissan Alliance: Will Further Integration Create More Synergies?
(8 pages of text)
Case (Pub Mat)
In 2015, Renault-Nissan Alliance (RNA) launched four convergence projects in four key functions (research and development, manufacturing and logistics, purchasing, and human resources). The projects required the two independent entities, Renault and Nissan, to increase collaboration and integration to strengthen economies of scale, and thus reduce costs in order to better compete globally in both developed and emerging markets. However, as the alliance increased the level of integration and opened possibilities for inviting new partners, it also increased the time and resources needed to reach joint strategic decisions between the two companies. RNA had many difficult decisions to make with respect to moving forward — not least of which involved finding an eventual replacement for the alliance’s 61-year-old chief executive officer.
The case aims to help senior undergraduate and graduate students:
- Understand the challenges of international strategic alliances between manufacturers and suppliers in a globalized capital-intensive industry.
- Consider how these manufacturers compete in developed and emerging markets where both scale/cost and innovation/quality are critical.
- Realize the importance of the purchasing function in terms of costs as well as technology and time to market in the unique context of Japanese-style management.
Japan, Large, 2015
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