Market Expansion of Renault in Brazil

Crafting Your Future:
Professional Practice
and Research

Table of Contents
Title: Market expansion of Renault by opening of new factory in Brazil.......................................3
INTRODUCTION...........................................................................................................................3
Element-1 :LITERATURE REVIEW..............................................................................................4
Element-2: Self reflection................................................................................................................7
Analysis of the journey:..........................................................................................................7
Action:....................................................................................................................................8
Element-3: Personal development Plan:........................................................................................10
C: Personal objectives:.........................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
Changing external environment leads to development of lot of opportunities and threats
for different business that have to be identified in order to further utilise the opportunities in such
a manner that there can be availing of such opportunities before the competitors. Renault is a
multinational auto-mobile brand that was established in the year 1899. They are dealing in
different range of vans, cars and also manufactured tanks, tractors, buses, auto-rail vehicles,
aircraft engines and buses (Covin and Wales, 2019). Present report is based on working as a
consultant, so that specialist services can be offered to the automotive industry of Renault to
analyse the different directions and opportunities that are part of this industry in Brazil so that
most appropriate strategy can be selected and recommended to this organisation for their future
expansion terms. For this there has been use of secondary sources of information in order to
make a research and further focus on self-reflection along with the timely partition of personal
development plan in order to improve the areas in which there is lack of performance
(Edmondson, 2018). There are different techniques of critical evaluation that has been used to
analyse the competitive changes in the environment, trends and changes with application of
appropriate tools and techniques.
Aim: The aim of the research is to study the competitive business environment of Renault and
to assess emerging trends and the need for ethical and creative leadership and career
opportunities in the sector.
Objectives:
 Analyse existing information regarding the market to understand the past and present
trends in the industry.
 Critically analyse leadership, management and operational skills in the industry.
 To assess career opportunities and skills gaps in the sector
 To form effective strategies in order to successfully implement the market expansion
strategies in form of launching a new factory.
Questions:

 What will be the impact of external environment on present competitiveness of Renault
to expand their market share in Brazil?
 Analyse leadership, management and operational skills in the industry?
 Assess career opportunities and skills gaps in the sector?
 Formulate some of the effective strategies so that there can be successful market
expansion of Renault in their new target country Brazil?
Methodology:
Research methodology is related with the analysis of different types of data and information type
that is being used in a particular research work. For this purpose, there is analysis of different
types of primary, secondary, qualitative and quantitative form of information that is applied in
the present research according to the suitability and specific requirement.
Primary data: Primary data is the type of data that is collected directly from the data sources. It
includes authentic, reliable and objective type of information that is collected for the purpose of
addressing a particular research problem. It is specific to the needs of researcher. It exhibits the
ownership of collected data by use of primary research. In present research work there has been
no application of any type of primary information there is only use of secondary available
sources for the purpose of carrying on of research work.
Secondary data: It is the type of that is extracted from existing sources and there is no collection
of first-hand information through this sources. In present research work there is use of online
available articles, journals, books, websites as a sources for the purpose of collecting information
relevant to the aid aims and objectives of the research.
Qualitative research: It is a method of collecting information by application of open ended
questions. In which response are collected in non-numerical form this method assists research in
developing a detailed overview of the participant’s viewpoints.
Quantitative research: It is a part of overall research methodology in which there is collection of
information that has to be in measurable form. There is use of a systematic way of investigating
the data. It includes methods such as survey research, descriptive research and correlational
research. In present research work there is application of descriptive research work as there is use

of secondary sources of information for the purpose of collecting relevant information according
to the laid objectives of research.
Element-: LITERATURE REVIEW
Analyse existing information regarding the market to understand the past and present
trends in the industry
According to views of (Guler, Gannon and Sicchio, 2016), In order to make a evaluation
of the changing external environment there is a need to use porters five forces for the purpose of
evaluating the present competitive forces:
Competitive rivalry: Renault has to deal with other existing competitors that includes the brands
such as Ford, Honda, Chrysler and Nissan. The industry is willing to focus on adoption of
strategies of mergers or alliances that can be formed to minimize the negative impact from high
rivalry if such existing automotive brands.
Bargaining power of suppliers: the raw material required by Renault includes the paint, plastic,
aluminium and other such related components. All these products are unique and not available
easily so Renault has to maintain long term relations with their suppliers so that they are able to
deal with the bargaining power of suppliers can assist them in achieving their aim of factory
expansion in Brazil. So overall bargaining power of suppliers is high for Renault.
Bargaining power of buyers: The switching cost of buyers for Renault is low as they are able to
sell their vehicles and can purchase one at a time. Customer can easily get the information
related to product from different third party sources and not relying on seller. Buyers are also
very sensitive to the price and tend to purchase from brands who are offering products at lower
cost. So, the overall bargaining power of buyers is high and there Renault has to deal with price
based competition.
Threat of new entrants: Renault has been able to establish cost advantage through global
presence across different parts of the world, it is one of the established brand of the automotive
industry. There is a moderate switching cost if the vehicle replaced is new and low if vehicle is
old as there is already a high amount of depreciation. In automotive industry there is requirement

of high amount of investment for establishing a production unit and also for building up of
required brand image in the market as there are already lot of established brands. Further there is
need of high compliances with formed legislations by government and other regulatory
compliance is required, there is a low threat of new entrants for Renault in Brazil that can lead to
no competitive threat from any new start up brands.
Threat of substitution: It is related to other available product and brands that can be easily
substituted in place of products that are developed by Renault. In Brazil there is presence of
other means of transportation such as public transport facilities, motorcycles, railway facilities
that can be easily be substituted for vehicles manufactured by Renault. So it can be said that
there is moderate threat of substitutes that have to be managed by offering vehicles with high
quality products and prices have to be cost law in order to success by use of price penetration as
a Strategy in order to achieve a higher market share.
According to Renault Brazil who is the CEO of Renault has shared his vision that they
are willing to become future of the French auto maker in Brazil. For this there has been a
expansion towards achievement of a higher growth in Brazilian car industry. From year 2004-
2016 there has been an enhancement in the sports utility vehicles to grow from 6 percent to 15
percent (Hofverberg, Kronlid and Östman, 2017). from the above made analysis of porters five
forces it can be said Renault can achieve higher Market share and their objective of achieving the
market expansion by focussing on high competitive rivalry that can be achieved at a particular
point of time.
Critically analyse leadership, management and operational skills in the industry.
As per the viewpoints of tony, (2021) there are certain leadership skills that are essential
required for the purpose of proper timely expansion for the purpose of creation of great
leadership so that teams and employees can be properly managed in this scenario of new change
that is to be implemented in the organisation. Leadership skills required proper use of suitable
leadership style that can be transactional or transformation according to the internal management
structure of Renault. Further leaders have to concentrate on goals to execute them by formulation
of right plan with setting up of required benchmarks so that employees can be strive to meet such
goals (7 WAYS TO IMPROVE LEADERSHIP SKILLS,).