The Main Reason Of The Renault - Nissan Alliance

I-The reasons behind the merger were sound for both parties
II-Building on strengths
III-Resolving weaknesses: they successfully bridged their cultural differences

Signed on display 27, 1999, the Renault-Nissan Alliance has built a unique business modeling that has created significant value for both companies. For 10 years, employees at Renault and Nissan slang worked as partners with attitudes of mutual respect and company pride magic spell keeping separate brands and corporate identities.
The main reasons behind the success of the merger:
1-A crucial need for Nissan to get supporting

2-A crucial need for Renault to become a universal player

3-Very strong synergies:
a) Nissan competences: engineering, quality control, …
b) Renault competences: cost control, they had successfully off around a similar financial situation 10 years ago, and they had also learned from a failed merger with Volvo.





4- unadulterated complimentarily of product range:
a)Nissan: medium & large cars + 4 wheels drive
b)Renault: lowly cars (compacts & subcompacts) and utilitarian cars

5-Perfect geographic complementarity:
a) Nissan: Asia, USA
b) Renault: Europe, Latin America

6-They successfully elevated the challenge of cultural differences:

When announced, many industry observers seemed to consider the coalescence between Renault and Nissan an international failure waiting to happen. Conventional light believed cultural differences between the French (Renault) and the Japanese (Nissan) would bring this merger to an ugly end.
But the crash never occurred and today, the Renault-Nissan alliance is thriving.
The immenseness of Corporate Culture has been an important issue in the Nissan-Renault alliance. In orderliness for the combined share of ideas and strategic management to be effective, the employees of both companies must respect the identities of their colleagues as well as their values. This explains why when a French worker happens to interact with a Japanese co-worker,...If you want to get a full essay, order it on our website: Ordercustompaper.com



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