Renault Presentation

Patricia Hynes – B00346147 Leanne Rice – B00360242Maureen Teague – B00346131Laura Toner – B00342128

Overview History

Industry Trends

Strategic Direction

Product Market Portfolio

Financial Performance

Future Strategy

History1898 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

7 RCI BANQUE February 2009

Vehicle Volumes By Region (000’s)

2007

279283

2008

EuropeEurope

20082007

497

447

2007

AmericasAmericas

46

2008

47

43

2007

EuroMedEuroMed

2008

41

Asia AfricaAsia Africa

FranceFrance

2007 2008

3240

WorldWorld

20082007

898858

Differentiated Premium Price Stategy

Unit Cost & Unit Price (€)

Low HighVolume

Margin for Quality Player

Industry Cost Curve Premium Price

Prevailing Price

(Source: www.strategycompass.com, McNamee, 2004)

MARKETPRODUCTS

Sales Value (£millions)

Number 1 Competitor

Number 1 Competitor Sales

RMS Market 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

Product Market Portfolio

Ansoff Matrix

Build/protect

• Megane Coupe• Clio

Product Development

• Megane Renaultsport• Clio• Scenic

Market Development

• Asian Market

Diversification

• Formula 1• Buses & HGV• Electric Cars

PRODUCTSNewExisting

Exis

ting

New

MAR

KETS

Porters 5 Forces

STRENGTHS

THREATSOPPORTUNITIES

WEAKNESSES

SWOT Analysis

Strategic Alliance

Global Operations

Strong Focus on R&D

Innovators

Renault Brand

Weak Operational Performance

Weak performance in key markets

Reliance on Western Europe

Economic Climate

Competitors

Fuel Fluctuations

Growing Asian Automobile Industry

New Model launches

Increasing demand for hybrid electric vehicles

PESTEL Analysis

ECONOMICAL

POLITICAL

LEGAL ENVIRONMENTAL

TECHNOLOGICAL

SOCIAL

PESTEL Analysis

POLITICALEU Emissions StandardsProduct development

ECONOMICALCredit CrunchRising Fuel Prices

SOCIALCommitment to Renault Good Code of ConductRelations with stake-holders

TECHNOLOGICALDevelopment & Implementation of technologiesDrive these technologies ahead

ENVIRONMENTALECO 2 SymbolDemand for HEV vehicles

LEGALSafety of vehiclesInvesting in R & D

PRODUCTS First-time buyers

Teens Professionals Family Fleet

Twingo

Clio

Megane

Laguna

Espace

Koleos

Defining the BusinessCustomers

Boston MatrixStars Problem Children

Cash Cows Dogs

Mar

ket G

row

th R

ate

0%2.0

2%

4%

1.0 0.01Relative Market Share

Megane

Clio

Laguna

Koleos

Espace

Twingo

Competitor Analysis Theory

Competitor Leader/ follower

Growth rate

Competition Goals Strengths Weaknesses

Follower Low Severe Dominance Quality Negative perceptions of brand

Leader High Severe Remain Dominant

Tailored Products

Bad publicity with certain product lines

Follower Low Severe Growth Targets price-driven customers

Identified poor after-sales service

Leader High Severe Remain Dominant

Partnered with BMW

Safety Issues

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

Any Questions?

........Va Va Voom?