Renault in Romania: Prospects and Challenges



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Code : COM0097

Year : 2005

Industry : Automobiles

Region : Romamia

Teaching Note: Not Available

Structured Assignment : Not Available

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Abstract: Sluggish growth in the Western European automobile market forced the French carmaker Renault to enter the growing market of Central and Eastern Europe. As part of its strategy for the Central and Eastern European regions, Renault decided to launch its low cost car, the Logan. To leverage on low costs, Romania was selected as the manufacturing base for the production of the Logan. The success of the Logan prompted Renault to launch the car in other markets by expanding its operations in Romania. However, critics were of the opinion that Renault would not be able to continue producing the Logan model at low costs for long.

Pedagogical Objectives:

  • To analyse the advantages that Romania provides as a manufacturing base for automobile companies and Renault's operations in Romania
  • To discuss whether Renault would be able to sustain its low cost manufacturing advantage in the future.

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    Keywords : Renault SA; Automobile Dacia SA; Central and Eastern Europe; Logan; Low cost operations; Automobile industry in Romania; Highly skilled cheap labour; Market Entry Strategies Case Study; Manufacturing base; Low cost car; Export strategy

    Contents :
    » Renault: Company Profile
    » Romania: A Favorite Destination for Automobile Manufacturers
    » Renault in Romania


    Case Introduction >>


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