Report on Renault Automobile manufacturer in French

Introduction Renault Automobile manufacturer in French:

Renault Car Company is a well known and famous French automobile and manufacturer of the motor carrier. It works under the control of the French government. Its headquarters located in Boulogne-Billancourt and also the largest exporter and manufacturer of motor vehicles. The original firm named Renault brothers was developed by Louis Renault and they develop a minicar at home which was the beginning of the innovative and novelty of automobiles. In 1899, the firm receives its first order and after that, they also won many competitions related to car racing due to the excellent making of cars. They launched an awesome string of wins that promote the name of these brothers and they become famous in the automobile industry.

They adopt mass production techniques and in 1905 they receive an order of 25 taxis. After a few years, the company is known as the Louis Renault automobile company. They also manufacture tanks, shells, ambulances, stretchers, and trucks during the First World War. They also assess the gap in the automobile industry between the American factories and the European automobile industry. Ford had already entered the era of customers and the due to mass production of reasonable cars, their purchase also increase and a positive effect show on the economy. In 1929, during the economic crisis, the company tries to minimize its additional cost and also utilize its resources most effectively.  (britannica.com)

In the Second World War, the company also faces a conflict with Germany and they join the cause of Germany. And in 1945, they nationalized the company. After that, the Renault Company also implemented new production sites and modernized its plans. In France, the post-war also move to the emergency of great competition between Renault and Citroen. Renault fails To conquer the American market between 1950 and 1975. And the Renault was launched with international expansion. Renault faces the largest success with the 4CV as discreet and inexpensive ‘everyman’s vehicles’. To revive the country automotive industry, small cars were the best way according to Renault. Through 1961, its mass production starts launching and continuous. The development of the firm appears in the rally racing and also in the automobile market. They launched the car as ‘car for life 'for racing purposes and obtain a large number of victories in the motor racing field.

The ascension of the company symbolized in 1980. The interest of Renault grown up in the motorsports and develop new upmarket models for increasing the growth of the car. After that company face many financial issues and losing huge money but the company put the drastic cost-cutting policy and met its profitable level in 1987. In 1992, the company brought major changes and they try to merge with the Volvo but they never succeed. So the French government overtakes the company management and then the Renault become the brand profile and also become international leaders of the market of the automobile industry. (renault.com)

External factor evaluation Matrix Renault Automobile manufacturer in French

Renault Car Company is a very famous and well-known company in the automobile industry. To determine the external factors, the company also utilizes the matrix of EFE that means an external factor evaluation matrix to determine its external factors and the opportunities and threats related to these factors. This is a strategic tool to identify the external environment of the company and also identify the threats and opportunities of the company effectively. These factors may affect the performance of the company and different tools like porter's five forces or competitive profile matrix also used to develop a strong idea for protecting the company. These different opportunities and threats are determined by observing the external environment of the Renault company and then rating that elements according to their worth and also weight them according to their effects on the company.

Weight is shown in the range of 0.0 to 1.0 according to its importance on the company. Related to opportunities, the weight explains how much the factor gives benefit to the industry according to its worth. Because all factors never give the same benefit to the company to weight should determine to check their importance  but the sum of all the factors must be 1.0, every factor has its unique importance and these estimations are helping tool for making the company successful because only these factors never provide assurance about the company and its success. Weight has a different meaning for the threats and opportunities and also helps the company to determine these factors according to the company's requirement and their needs. (mba-tutorials.com)

 The rating has different meanings according to the requirement of the company. In an external matrix, rating means that how the current strategy of the company response to the threats and opportunities of the company and how the results move in an upward direction. In rating 1 till 4 numbers are used according to their response to the strategy. 4 means superior response, 3 means above-average response, 2 means average response, and 1 means poor response. So the rating and weight must be assigned to each factor according to its importance and proper response to the strategy of the company. PEST analysis also utilizes by the company to determine its external factors that affect the company according to threats and opportunities and how they become beneficial for the company.

Renault Car Company is the automobile industry so it provides different external factors of the environment according to this specific industry and also determines that what opportunities and threats face by the company related to their production and explore new ways for the organization in new terms and conditions. In this external environment matrix, some of the opportunities of the Renault Company include demand shifts of goods or services, import and export factors, attitude toward business, special tariffs, and level of government subsidies. Some of the threats include demand exceed the supply of experienced workers, intense rivalry in industry, per capita income, inflation rates, and price fluctuation. So these may affect the external environment of the Renault company and when their weights and rating occur then it explains that how much they are beneficial for the company and how they respond against the strategy of the company that develops for enhancing the level of production at international level. (ukessays.com)

Internal factors evaluation matrix Renault Automobile manufacturer in French

 There are also many factors inside the company that must be determined and examine according to their effect in the organization and also determine that how much they are useful for the company and whether they have to eliminated or not according to company policy and its strategy. Just like external analysis, Renault company use the internal factor evaluation matrix for determines its internal factors and also evaluate them according to their need and nature and also their impact on the organization. A strategy tool of internal factor evaluation matrix conducted to evaluate the internal environment of the firm and also show what are the weakness and strengths of the organization through different factors. In the method of evaluation, the strengths and weaknesses are utilized as key internal factors for the company.

 Strengths explain that how can the company compete with its competitors most effectively. And weakness how where the company needs to give more attention and make some improvements to meet the level of the market among its competitors. The weighting of the factors is just like the external factors that use range from 0.0 to 1.0 and also explain that how much the factor takes part in the success of the company and how much it became beneficial for the company. All the factors have not become reasons for the success so the weights explain according to their importance and worth. (Jurevicius)

            Its rating explains how much the factor strong or weak according to the internal environment of the company. A range of numbers from 1 to 4 is used for the factors. And the rating criteria are as same as given for the external evaluation. By using the benchmarking tool, it is easy to assign the rating of the IFE matrix in the internal environment. This matrix is very helpful for the organization because it utilizes for many different purposes for benchmarking and determine the value of the organization, it gives more attention to internal and external factors that are the main part of the organization and play important role in the development of the organization. These matrices are easy to understand and also easy to use to explain all the factors with complete details and also mention all the important factors without any problem.

For conducting the IFE matrix, SWOT analysis is used within the organization that clearly explain the strengths and weakness of the organization and also help to explain how they can impact the performance of the company.  Both the external and internal factor evaluation matrix help to provide better information about its strategy and also promote its strengths and weakness and also its opportunities and threats. After conducting their results the company deeply observe its strategy and also determine what sort of changes will provide long term benefit to the organization and how this matrix is helpful for the future. 

SWOT strategies Renault Automobile manufacturer in French

            In Renault Company, SWOT analysis is the most important and most famous analysis that helps to evaluate different factors. This company has developed its strong and high-class reputation in the automobile industry. This car company needs no clarification for its product. It also specialized in all the sectors of cars that make it more famous and increase its demand. It’s all cars are known and famous due to their durability, style, and design, it's all cares include updated advanced technology that provides a change in drive with great comfort. So here we are going to discuss the SWOT analysis of the Renault Company that includes its strengths, weakness, threats, and opportunities.

Strength means that all those factors that make the brand of the company more strong in the market and this unique automobile brand have its strengths and uniqueness that make it different from many others. So some strength includes affordable price, coloration, widespread, variety of options, international market and customer base. Because the product is a customer base so it becomes the most popular brand in the world. Its total number of loyal customer also increase day by day as the brand provides the same quality from many years. And due to the high and same quality, his automobile brand exists in the Europe market for a long period.

This brand has a great presence in the international market which is now utilizing its strength. It is not limited to Europe but also spread all over the world. brand give more attention to the manufacturing of all type of cars according to customer requirement so they offer lots of variety and its all designs and manufactures cars are different from each other. It also collaborates with the most famous car brand to make its reputation more strong. And these cars are prepared for high-class people so they offer affordable prices to them according to their limits and requirement.

Weakness is also part of the company so some of the weaknesses are given as recall of cars and lack of penetration in the Asian markets. It means that they only famous in the Europe markets but they never dominate in the Asian market due to different reasons and also create a bad image due to recall the cars. Opportunities of the company help to maintain its future more secure and powerful to meet its competitors. Opportunities of Renault Company are an enhancement in the market, strong partnership, and salient investment.

 They invest in the latest and advance technology according to future demand and meet the need of the customer. They also merge with strong car partnerships to develop a strong market image and through this, their market scope also increases. The most important and major threats of the company are its competitors and due to market penetration the other cars are also moving in the market and they also beat their competitors most effectively and earn profit to a limited range. (Bhasin)

BCG matrix Renault Automobile manufacturer in French

            Renault also uses the BCG matrix that means Boston consulting group. This is a tool of co-operating planning that utilizes the brand portfolio of the company and also determines its axis according to relative market share and the speed of market growth. This matrix is a framework that evaluates the strategic position of the brand portfolio of the company and also explains its potential effects. Based on industry attractiveness and competitive position, the business portfolio classifies on four different categories. It also helps to understand that where the invest must be beneficial and where not according to different scenarios.

            Relative market share is one of the dimensions that value the portfolio of business according to market share. Highest market share companies also obtain high cash return according to term and conditions. Company generate more profit when the produces more, provide benefit from higher economies of scale and experience curve. Renault Company also faces the same situation but their production is not too much and still they capture maximum share of market.  Higher earning means high market growth rate and it also enhance the profit but it utilizes lots of cash and need proper investment for future growth.

Four different quadrants of the BCG matrix include dogs, cash cow, stars, and question marks. Dogs means they operate slowly in the market and also hold low market share as compare to its competitors. Because they generate low or negative cash return so they are not worthful for the investment. But sometime the dogs also give benefit for the long term and also compete their competitors with deeper performance and utilize their investment in better way.

Cash cow means more possible cash is provided and the brand becomes more profitable. Cows that gain more cash move to stars for future growth and development. In cows the investment help to support the business to maintain their growth and current market share. Star means that the companies are highly profitable and also maintain high growth with high market share. They are cash users and cash generators. More investment opportunities provided for the star so in future they become cow and give cash to future benefit.

Question marks are such companies that need proper attention and considerations. They consume large amount of cash and hold low market share and also face loss. It has ability to become star and then convert to cow but now they need proper attention and also enough cash to maintain their position and become stable in the market. These matrix is beneficial for the company because it is easy to perform, it is good starting point for detail analysis and help to understand the business portfolio of strategic position. So these tools help to enhance the business at upper level and Renault Company implement this matrix in its different brands of cars according to market demand and customer requirement. They also take their investment decision in better way and provide lots of benefit to the company and generating more profit for future. (Jurevicius, BCG growth-share matrix)

Porter’s five forces model Renault Automobile manufacturer in French

Porter’s five forces analysis is that analysis that explains about products market completion with others. There are many different people are working in the same market in any product in which they are dealing so they are going to manage in  way that they did  porter’s analysis so that it helps them to analyze their own position in the market among all their competitors. Auto mobile companies are very much in amount in the market and all are claiming to provide efficient and great facilities to their users. This analysis has different aspects that help in analyzing each aspect carefully which are as follows:

Supplier’s power Renault Automobile manufacturer in French:

The car is made of complex products and they should be made of the best material that will last longer. Renault Car Company in order to increase the quality of their product they must enhance the productivity of the material with which they are making their products. Auto parts prices became fluctuate every time and hence they are going to manage by the suppliers that what they actually want in terms of taking supplies for the auto parts that they are going to fit in into their cars. The best material they get from the suppliers the better they will eb able to get good position in the market. (FERGUSON, 2017)

Product’s substitute Renault Automobile manufacturer in French:

Renault Car Company should focus on the making or introduction of more advance and more innovative substitutes of their products so in case of any new innovations; launch you can also bring some new existing products in the market to attract customers more towards you unless your competitors. This strategy is worth to get more clients and this will attract customers more efficiently and positively. The more substitutes you keep with the better it will give an enhanced level of workings.

Competitor’s tradition Renault Automobile manufacturer in French:

            The main thing is to take care of your worst competitor as the company which is competing you more must be kept in minds by you so that you can get as maximum space as possible in your better companies’ worth. Renault Car Company should concentrate on the creation or presentation of increasingly advance and progressively inventive substitutes of their items so in the event of any new developments; dispatch you can likewise get some new existing items the market to draw in clients more towards you except if your rivals. This technique is worth to get more customers and this will pull in clients all the more effectively and decidedly. The more substitutes you keep with the better it will give an upgraded degree of operations. (Anza, 2014)

New market entrants Renault Automobile manufacturer in French

The vehicle is made of complex items and they ought to be made of the best material that will last more. Renault Car Company so as to build the nature of their item they should improve the profitability of the material with which they are making their items. Automobile parts costs became vary without fail and consequently they will oversee by the providers that what they really need as far as taking supplies for the car parts that they are going to fit in into their vehicles. The best material they get from the providers the better they will eb ready to get great situation in the market.

References Renault Automobile manufacturer in French

Anza, Mubashir. Porter's 5 Forces in the Automobile Industry. 4 0ctober 2014. <https://www.scribd.com/document/241912737/Porter-s-5-Forces-in-the-Automobile-Industry>.

Bhasin, Hitesh. SWOT analysis of Renault. 20 12 2018. <https://www.marketing91.com/swot-analysis-renault/>.

britannica.com. Renault . 2019. <https://www.britannica.com/topic/public-enterprise>.

FERGUSON, EDWARD. Toyota’s Five Forces Analysis (Porter’s Model). 2 February 2017. <http://panmore.com/toyota-five-forces-analysis-porters-model>.

Jurevicius, Ovidijus. BCG growth-share matrix. 1 may 2013. <https://strategicmanagementinsight.com/tools/bcg-matrix-growth-share.html>.

—. IFE & EFE Matrice. 20 10 2014. <https://strategicmanagementinsight.com/tools/ife-efe-matrix.html>.

mba-tutorials.com. THE EFE MATRIX (EXTERNAL FACTOR EVALUATION MATRIX). 2019. <https://mba-tutorials.com/the-efe-matrix-external-factor-evaluation-matrix/>.

renault.com. Renault Case Study. 2015. <file:///C:/Users/it/Downloads/54873aa0c9315.pdf>.

ukessays.com. External Factor Evaluation Matrix Used In Car Companys Marketing Essay. 5 12 2016. <https://www.ukessays.com/essays/marketing/external-factor-evaluation-matrix-used-in-car-companys-marketing-essay.php>.