Renault-Nissan Alliance: Success by Integration

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Strategic Management Formulation, Implementation, & Control, 12e

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Case Details:


Case Code : BSTR422 For delivery in electronic format: Rs.400;
For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extra


Implementation/ Integration/ Strategic Alliances/ Globalization
Case Length : 14 Pages
Period : 2000-2012
Pub Date : 2013
Teaching Note : Not Available
Organization : Renault; Nissan
Industry : Automotive
Countries : Europe; Japan; Global


Renault is a France-based automaker, with a presence in all major automobile markets around the world, barring the US. Nissan is the third largest Japanese automobile company, after Toyota and Honda. In the late 1990s, Nissan was debt-ridden and making huge losses. In 1999, Renault initially acquired 36.8% shares of Nissan and entered into a strategic alliance with the Japanese company. The Renault-Nissan Alliance was unique in the sense that Renault allowed Nissan to maintain a separate identity while developing synergies. The two companies developed a paradigm-altering model of partnership that allowed them not only to cut costs and become more efficient but also to become more nimble and innovative.

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The Alliance involved sharing several systems, plants, platforms, and best practices. The case discusses the features of the Renault-Nissan Alliance and some of the challenges that the Alliance faced. In 2012-13, with more and more economies facing a slowdown, it seemed like the Alliance would face tougher challenges in the near-term. Also, with CEO Carlos Ghosn expected to step down in 2014, it looked like Renault and Nissan would appoint separate CEOs. According to analysts, this could have an impact on the success of the Alliance.


Examine the reasons for Nissan and Renault entering into an alliance.
Analyze the efforts made by Renault-Nissan Alliance to take advantage of synergies
Appreciate the benefits that the Alliance provided to the two partners
Examine some challenges that the Alliance may face in the immediate future and suggest solutions


  Page No.
Different but Same 1
About Nissan 1
About Renault 2
The Renault-Nissan Alliance 3
Nissan Revival Plan 3
A Lesson in Integration 4
Benefits of the Alliance 5
Growing Through Collaboration 7
Challenges Ahead 7
Exhibits 9


Integration; Strategic Alliance; Strategy Implementation; Leadership; Nissan Revival Plan; Alliance Integrated Manufacturing System; Alliance Quality Charter; Steering Committees; Cross-Company Teams; Functional Task Team; The Nissan Production Way; Synergies; Cost advantages; Technology sharing; Culture; Renault; Nissan

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