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Strategic Management Renault And Matra Case

1465 words - 6 pages

Table of contentsI. Background ................................................................... Page3 à 41) Issues ........................................................................ Page 42) Objectives ................................................................... Page 4II. Matra Diagnostic ............................................................ Page 5 à 71) "Espace Project" ........................................................... Page 52) Matra- Renault Alliance .................................................. Page 53) Weaknesses of the company .......................................... Page 6III. Recommendations of Renault-Matra alliance perspectives .... Page 7 à 81) Key success factors of future market .......................... Page 72) Illustration of Matra Perspectives ................................ Page 8I. BackgroundMatra Automobile is owned by Hachette- Matra, a large diversified company with business in aerospace, defence, automation, telecom, publishing and automobileAutomobile is not the main activity of the company and so not the only concern. In parallels it is one of the most profitable activity of the firm since 1994Moreover since mid 1995's, it is one of the most profitable automobile manufacturers with net profits amounting to approximately 10% of sales (Mainly Due to the success of the Espace, sold by Renault and manufactured by Matra)Dependence of a portfolio compounded of one product for Matra AutomobileOne inventor, P. GuedonEspace is a myth, a revolution in the car industry by its design and practical usingBut,Strong direct competitors are entering the market in 1995Growing market periodLead to saturation within the futureJointly- produced model trend, sold under own brand with strong advertising campaignFord and WolkswagenFiat and Peugeot- CitroenRenault-Matra agreement until 20011) Issues- Competition- Market saturation- Average development time and commercial life span of a new model is 4 to 5 years- Environmental issues (Recycling, fuel consumption,...)2) Objectives- Define product policy for the years beyond 2000 and reconsider its strategy for the next decade- Evolution of Matra's alliance with Renault- Overall evolution of the automobile industryII. Matra DiagnosticAfter Acquiring Automobiles René Bonnet in 1964 Matra became a small firm producing limited quantities of a sports car.Strengths: Quality, Specialist of innovative cars, Favourable brand imageWeaknesses: Capacity of production limited, Dependence on one product (Poor portfolio of products)Moreover, Matra is little known as car manufacturer even if it is a specialist of sport cars and further car passenger innovator.Strength: Brand image: react by successfully communicate on auto-racingWeakness: Limited production of sport carInstead of a successful communication campaign, Matra register poor success in its passenger car businessProduct sport cars with poor engine even if design is innovativeMatra auto...

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