Nissan Case Syudy

Case study 3 : Rescuing Nissan.

ECON 503.

Introduction:

The automobile sector is a very important part of the world economy, a change in the automobile market share on the world stock market could have huge implications in the world economy.

While inter-firm cooperation is expected to pave ways for new innovative business opportunities, it has proved to be highly risky and difficult. In this case we analyses the emergence of the Renault–Nissan Alliance through the cooperative development of the first joint platform.

Building a new collective identity requires specific managerial models to design simultaneously common purposes and collective identity. Several managerial implications are derived partnerships firms which exploring new fields.

Main Problem:

Nissan was suffering under a decade of decline and unprofitability, in fact the company was on the edge of bankruptcy, and with continuous loses for the past years resulting in huge debts for the company. Elements impacting Nissan's performance prior to the global alliance with Renault:

* Internal factors such as: Emphasis on short-term market share growth instead of a long term success strategy; advanced engineering and technology, plant productivity, quality management. However, less attention was given to design and innovation, on the assumption that consumers were looking for quality and safety. This implies a lack of knowledge of the market, consumer's changing tastes, and showed that Nissan management did not pay too much attention to what competition was doing.

Solution:

Nissan Company strategic alliance with French auto car manufacturer Renault was mutually beneficial for both companies, each of them expanding portfolio and becoming more competitive in the context of globalized mature automobile market.

The alliance enabled Renault and Nisan to operate and expand in international markets. Even though Ghosn expected that his attitude toward cultural respect and opportunism would lead to success,...