can i have answer for this 3 qustion into the case below about the renault-nissa
ID: 468698 • Letter: C
Question
can i have answer for this 3 qustion into the case below about the renault-nissan alliance collaborating to succeed
if the photo not clear just open this link paje for case 261
https://books.google.iq/books?id=TO5LIILHmcYC&pg=PA261&lpg=PA261&dq=the+renault-nissan+alliance+collaborating+to+succeed+case&source=bl&ots=W8_O-KKi7H&sig=KNuOpz0GgKg7gCVfGiHE6nJRLEM&hl=ar&sa=X&ved=0ahUKEwiLnpSjqZDNAhUGX5QKHV-CCL8Q6AEIPDAE#v=onepage&q=the%20renault-nissan%20alliance%20collaborating%20to%20succeed%20case&f=false
the qustion
1-In your opinion, how could cooperative strategy help firms like Nissan and Renaults create competitive advantage? And how to sustain the “integrated competitive advantage”?
2-Why horizontal complementary strategic alliance at business level is important to firms like Nissan and Renault?
3-From your experience, what are the cultural challenges that will impede the cooperative strategy success?
THE RENAULT Marcnz is the day the almance between French-based Renault and Japan based Nissan was formally launched. At the NISSAN ALLIANCE: COLLABORATING TO SUCCEED time the alliance was formed, each of these firms lacked the size necessary to develop economies of scale and economies of scope that were critical to offorts to succood in the 1990s and beyond in the global automobile market. The alliance the two compa nies formed finds them holding ownership stakes in each other; the larger of the two companies, Renault has a 44.3 percent stake in Nissan while Nissan has a 15 percent stake in Renault. Brazilian-born Carlos Ghosn serves as CEO for both companies. Three values guide this corporate-level synergistic alliance (we discuss this type of alliance later in the chapter): (1) Trust (work fairly, impartially and professiona lly), (2) Respect (honor commitments, liabilities, and responsibilities), and (3) Transparency (be open frank, and clear The Renault-Nissan alliance is recognized for its success. The firms' decision to estab- lish Renault-Nissan B.V., which is a strategic management company that is responsible for creating common strategies for the companies and for facilitating and managing synergies resulting from combining some of the firms' respective reso urces, capa ties, and core competencies, is a key reason for the alliance's success. Also supporting the management of this alliance is a number of committees with mem bers from each company. These individuals are expectod to do every thing possible to integrate the firms resource portfolios for the purpose of creating products customers wil value and that will contribute to the firms' profitability bili- Cooperative strategies such as the one formed at the corporat ULT NISSAN l between Renault and Nissan ara increasingly important to firms; but firms form many types of cooperative relationships in addition to corporate- level ones. Moreover, an indlividual firm's set of cooperative relationships can be complicated, as the Nissan and Renault alliance demonstrates. In addition to their corporate-level all ance, Renault and Nissan have each formed horizontal complementary strategic alliances at the business unit level with other companies. (We discuss several types of business- unit level alliances in the chapter) For example, Nissan and Mitsubishi Motors Corporation formed a joint venture (called NMKV Co, Ltd.) to produce minicars for the Japanese market. The cars are to be introduced in 2012 and are being manufactured in a facility the venture built in Thailand. This venture was formed for the purpose of uniting the strengths of Nissan and Mitsubishi in the areas of vahicle engineering, development and parts sourcing, as part of an overall strategy to bring now minicar products to market. Additionally, the firms are discussing the possibility of using this rolationship for the purpos ing of collaborating to develop electric vehicles as well. Ghosn sees electric vehickes as a pillar to future strategies for both companies. RENAULT NISSA The successful Renault-Nissan alliance is built upon three standards-trust, nespect, and transparencyExplanation / Answer
1.
Cooperative strategy between two companies help them to complement each other in terms of resources, technology and human resource. Here, both companies compensate for the weaknesses of each other through cooperative strategy. Thus, in the business environment they become a joint force and their strengths create a competitive advantages over the competitors.
For example, cooperative strategy between Nissan and Renault will give them a better understanding of the market, efficient resource utilization, improved productivity and bargaining power in the market. It will create a USP for them to market their product against the rivals’ product.
2.
The horizontal business level alliance is important for the companies as mentioned in the case because they serve different products to different markets. These products are different in each market as they are according to the demand scenario. Thus, horizontal alliance is created between companies to create those products that are specifically designed to cater to a particular market. In such alliances, companies complement each other. For example, one company having the manpower and understanding of the market is joined by another company that have the technology and financial resource to give feasibility to the venture.
3.
Each culture comes up with a different set of values, beliefs and conduct that can differ from another culture. Here, strategic alliance between two companies is not only about joint objectives, but also of merger of two different cultures. A mutual respect, understanding and adaptation of cultural values are mandatory for the venture to succeed. In the absence of such understanding, cultural differences create an impediment to the success of the venture. For many failed joint ventures, cultural differences are also one of the primary reasons.
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