The alliance’s success depended on Nissan getting back to profitability. through various changes to regain its profitability and competitiveness. Before Nissan got into alliance with Renault it was in significant debt problem. The amount in debt amounted to $11.2 billion and this prevented Nissan from making necessary investments in its aging product line. (http://www.nissan-global.com) Although Nissan had recorded a success in automobile technology but rather it forget to focus also on style /design, its products were too old to compete with others in the market (for example, micra in Europe)although micra (March) was nine years old and only a few updates it still competed for 25% of the Japanese market and for the similar portion of European
Tata Motors has to be ready for the risks that come with such acquisition done at a period when there are recession uncertainties. Although many people may be tempted to think that Tata will perform well after acquisition because India has low production costs, the company needs effective strategies which will guarantee them success (Wharton University of Pennsylvania 2007). One important decision I to maintain manufacturing sites in the United Kingdom because immediate transfer may be affected by the political sensitivities that exist among leaders in the region concerning the impact of motor industry (Wharton University of Pennsylvania
Satyam was up for sale due to the fraud case. There was no option of having an alliance. Tech Mahindra’s rationale behind this acquisition of scam tainted Satyam computer services was to diversify into multiple verticals like BFSI, manufacturing and retail while offering a wide range of service offerings like enterprise and engineering services to existing and future clients of both Satyam computers services and Tech Mahindra. Tech Mahindra could look to another company to ally with but there was no other with this size and operation efficiency which was there. This was an opportunity which was unique and may come across only once in a while.
Competitors – The industry that Nissan currently operates in provides lots of potential competitors for them as many automobile companies are developing electric cars which are something Nissan are very keen on focusing on. Nissan currently only run a small market share of the industry so many competitors are dominating the market such as Ford, Vauxhall etc. Nissans competitors have many strengths and weaknesses against Nissan. Some companies such as Ford focus heavily on fuel powered cars which means they will have an advantage against Nissans fuel powered range but Nissan will have an advantage over them with Nissans electric cars and the amount of research that has been put into it. Other companies such as Tesla whose main focus is electric cars are a fairly big competitor towards Nissan and the Nissan leaf range.
8) The study will help investors in analyzing the risk and return associated with car industry. 9) The utility-cost matching can be done effectively to fix prices for any new car introduced in future. 10) The various operational and planning problem associated with TATA NANO will help in outward look for any firm 's business decisions and future expansionary policy as in this case. 11) The study reiterates the need for business research in operations and marketing before actually venturing into the business. Business research is the first step towards any new business plans.
UNIV 1213: Leadership and Teamwork Instructor Name: Section:------------------ Student Name: Student ID: Major: Learning Log: Article Analysis 1. Introduction The Renault- Nissan Alliance can be considered as one of the supreme examples of a successful relationship between two world automobile companies. This was in 1999 when Carlos Ghoson, CEO of Renault being asked to travel to Japan- Tokyo and be the leader of turnaround at Nissan. The two mobile companies agreed to build a powerful and strategic alliance where Renault would pay 5.4 billion dollars of Nissan debt and this deal had many advantages for both companies. The strength of Nissan Company in North America gave an important chance for Renault; however, Renault cash paid helped Nissan Company to reduce its mountain of debt.
CASE STUDY 4 Tata Nano: The people’s car Mayank Singh Mudgal Ph11B0005 3rd March 2015 Introduction This is the fourth report for the course ED5317: Strategies for Managing Innovation. The report requires us to study the case by INSEAD titled “Tata Nano: The people’s car that promises to reconstruct the Automobile Industry”. The following questions will be answered: • What was the thinking behind Nano’s inception? • What were the innovations involved in the design of the car? • What were the challenges faced by Tata in the car’s launch?
Employees Motivation Although Nissan has a big crisis in 1990s, but there were some positive signs in the early 1990s to inspire hope for the future. Nissan's 1993 sales increased nearly 20 percent. Much of the result was attributable to robust sales of the Nissan Altima, a replacement for its Stanza model, which was introduced in 1992 and marketed in the United States as a small luxury sedan priced under $13,000. And the company's return to profitability in fiscal 1997 came about in part because of the cost-cutting program. (FUNDING UNIVERSE, 2015) Low sales were the main reason of Nissan’s big crisis.
Innovation leads to distinctive and attractive products for all market sectors. Thus, Toyota accomplishes its core strategy as Toyota is one of the most innovative auto companies and has a strong culture that is focused on constant innovation. The company is known for its innovation processes. The company was the first to introduce Kaizen, Kanban and Total quality Management systems widely in their organization (Ovidijus J., 2013). The company was the first to manufacture and sell hybrid cars as well.