Patricia Hynes – B00346147

Leanne Rice – B00360242

Maureen Teague – B00346131
Laura Toner – B00342128
 Overview
 History
 Industry Trends
 Strategic Direction
 Product Market Portfolio
 Financial Performance
 Future Strategy
 History
1898 Louis Renault created company
1904 120 Dealers and 948 cars
1907 Plane engines
1913 10,000 cars
1944 Louis Renault dies
1959 Worlds 6th largest
1976 Renault Sport
1996 Privatised
2008 Partner with VAZ
 Mission Statement
“ TO MAKE & SUSTAIN RENAULT AS
THE MOST PROFITABLE
AND COMPETITIVE EUROPEAN
VOLUME CAR COMPANY”
 Review of 2008
 Net income £599m
 +3.63% Market share
 Laguna top 3
 800,000: 2005-2008
 £4.2bn credit agreements
 Production vs Sales
 9 new product launches
 Global Corporate Strategy
 1 of the top 3 car commercial vehicle
brands in Western Europe
 Present in 118 countries
 Aims to maintain a high level of
profitability to contribute positively to
growth in the entire market
 Market share grew 0.15% at the end of
2008
 Vehicle Volumes By Region
(000’s)
World Europe France
497 283
898 279
858 447

2007 2008

2007 2008 2007 2008

Asia Africa
EuroMed 40
32
43
41
2007 2008
Americas
2007 2008
46 47

2007 2008

7 RCI BANQUE February 2009

 Differentiated Premium
Price Stategy
Industry Cost
Curve Premium Price

Unit
Cost
& Unit
Price
(€)
Margin for
Quality Player Prevailing
Price

Low High
Volume
(Source: www.strategycompass.com, McNamee, 2004)
 Product Market
Portfolio
MARKET Sales Value Number 1 Number 1 RMS Market
PRODUCTS (£millions) Competitor Competitor Sales Growth Rate
%
Twingo 3,622 Astra 4,138 0.87 +2.2

Clio 3,137 Corsa 3,106 1.01 +2.6

Megane 2,872 Scirocco 2,578 1.11 +2.0

Laguna 1,587 Passat 2,384 0.67 +1.1

Espace 4,686 Picasso 3,869 1.20 +2.4

Koleos 1,247 Hilux 2,013 0.62 +3.3

 Ansoff Matrix
PRODUCTS
Existing New
Build/protect Product Development

• Megane Coupe • Megane Renaultsport

Existing

• Clio • Clio
• Scenic
MARKETS

Market Development Diversification

• Asian Market • Formula 1

New

• Buses & HGV

• Electric Cars
Porters 5 Forces
 SWOT Analysis
STRENGTHS WEAKNESSES

 Strategic Alliance  Weak Operational

Performance
 Global Operations
 Weak performance in key
 Strong Focus on R&D
markets
 Innovators
 Reliance on Western Europe
 Renault Brand
OPPORTUNITIES THREATS
 Growing Asian  Economic Climate
Automobile Industry
 Competitors
 New Model launches
 Fuel Fluctuations
Increasing demand for hybrid

electric vehicles
 PESTEL Analysis
ECONOMICAL SOCIAL

POLITICAL TECHNOLOGICAL

LEGAL ENVIRONMENTAL
 PESTEL Analysis
POLITICAL ECONOMICAL SOCIAL
EU Emissions Credit Crunch Commitment to
Standards Rising Fuel Prices Renault Good Code
Product of Conduct
development Relations with
stake-holders
TECHNOLOGICAL ENVIRONMENTAL LEGAL
Development & ECO 2 Symbol Safety of vehicles
Implementation of Demand for HEV Investing in R & D
technologies vehicles
Drive these
technologies ahead
 Defining the Business
Customers
PRODUCTS First-time Teens Professionals Family Fleet
buyers
Twingo

Clio

Megane

Laguna

Espace

Koleos
 Boston Matrix
4% Stars Problem Children
Market Growth Rate

Clio

Koleos

Espace

Twingo
2%
Megane

Laguna

Cash Cows Dogs

0%
2.0 1.0 0.01
Relative Market Share
 Competitor Analysis Theory
Competitor Leader/ Growth Competition Goals Strengths Weaknesses
follower rate

Follower Low Severe Dominance Quality Negative perceptions

of brand

Leader High Severe Remain Tailored Bad publicity with

Dominant Products certain product lines

Follower Low Severe Growth Targets price- Identified poor after-

driven sales service
customers
Leader High Severe Remain Partnered Safety Issues
Dominant with BMW
 Financial Performance
(million euros)2008 FINANCIAL RESULTS FEBRUARY2007 2008 Change

Revenues 40,682 37,791 -7.0%

Operating margin 1,354 212 - 1,142

in % of revenues 3.3% 0.6% - 2.7%

Other operating income & expenses - 116 - 329 - 213

Net financial income & expenses 76 441 + 365

Associated companies 1,675 437 - 1,238

Current & deferred taxes - 255 - 162 + 93

Net income 2,734 599 - 2,135

(Moulonguet, T. (2009) “Renault 2008 Financial Results”)
 Future performance
projections
 Maximisation of Revenue Sources

 Cost Reduction

 Free Cash Flow Management

Review
THANK YOU.