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SWOT Analysis of Renault-Ionians alliance Essay

Analysts

Strengths

Strategic Alliance with Renault: Ionians signed a strategic alliance with Renault in order to try and become one of the top three automotive groups in terms of quality and value of its products (Marketplace 4).

The alliance gives the companies a combined market share of over 9% in which they both have 50% interest (Marketplace 4).

Both the Companies share platforms, technologies, and best practices (Marketplace 4).

Global Operations: Renault and Ionians have been entering new territories together, such as India, in order to expand their global outpoints (Marketplace 4).

The global operations provide protection against unwanted forces in specified markets, and also enable the groups to benefit from any available opportunities (Marketplace 4).

Robust Research and Development Activities: R&D activities focus on the environment, vehicle safety, information technology, and product development (Marketplace 5).

Ionians introduced the first affordable, zero-emission vehicle in the Ionians Leaf (Marketplace 5).

The strong R&D capability allows for a broad vehicle portfolio, and improves it competitive strength in the automotive industry (Marketplace 5).

Weaknesses

Declining Reputation due to Recalls: Ionians has been forced to recall a number of vehicles due to safety problems over the past few years. Vehicles that have been recalled include the Exeter, Sentry, Cube, and others. These recalls have a negative impact on the company, and lower the confidence that consumers have in Niacin’s products (Marketplace 6).

Opportunities

Expansion of Product Line-Ups: The Renault-Ionians alliance has enabled the company a great opportunity in the expansion of product line-ups. Cars such as the Ionians Leaf, Ionians Grand Living, and the Venetian have been released in various arrest around the world. All these expansions will lead to an increase in the companies reach and market share (Marketplace 7).

Strategic Investments in Zero- Emission Technologies: With the increasing energy costs and emissions regulations demand for the hybrid car is bound to increase a substantial amount.

The Renault- Ionians alliance has signed over 60 agreements worldwide in preparing for this mass- market launch of electric vehicles (Marketplace 8).

They also have devised a plan in order to recycle nearly 100% of the vehicle weight, including the secondary use of the battery (Marketplace 8).

Strategic Co-operation with Daimler: The focus if this co- operation is to share highly fuel-efficient diesel and gasoline engines between the two entities (Marketplace 9).

Daimler will provide gasoline and diesel engines to Infinite (Marketplace 9).

This co-operation increases the competitiveness of all partners through a substantial increase in volumes, leading to economies of scale and cost sharing in development (Marketplace 9).

Will also help broaden and strengthen the alliance’s product offerings and development technologies (Marketplaces).

Threats

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Competition in the Global Automotive Market: The automotive industry is highly impetigo and Ionians faces fierce competition with companies such as Toyota, increase with the continuing globalization of the car industry (Marketplace 10).

With this increase sales may go down and inventory increase which will push the financial stability of this company even further down (Marketplace 10).

Tightening Emission Standards: The EX. Commission and EX. Parliament have been adopting increased stringent emission standards which in the near future could result in additional costs for the product development, testing, and manufacturing operations of Ionians (Marketplace 10).

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