The logic of alliance Value Creation model on case study Renault and Assignment

The logic of adhesion entertain Creation model on case study Renault and Nissan - Assignment ExampleIn this manner the trammel has proved to be a success for some(prenominal) Nissan and Renault. However the two companies are still face challenges in creating an agreemental culture that can maximise cooperation between the human resources from the two companies. In tack to create the maximum value from this alliance, Nissan and Renault need to share their core competencies to synergistic effects. This will change both companies to improve their specifications and standards in a continuous process so that the competitive advantages of both companies are do sustainable. Strengths and weaknessesNissans strength is the worldwide market share while Renaults strength is in fiscal management (Glover, 2006). By forming this alliance, both companies will be able to address these structural problems. In assemble to maintain its financial strength, the French car maker Renault has to access new markets and this objective is met by forming the alliance with the Japanese car maker Nissan. Both companies will be able to implement the practice of benchmarking which is delimitate as comparing an organizations performance against the best practices in the industry. This alliance will enable Nissan to compare its financing strategies against those of Renault and thus identify the areas of improvement. Renault will be able to compare its merchandise discipline practices with those implemented by Nissan. As a result both companies can improve their efficiencies in these useable processes and thus strengthen their competitive advantages. ... The main weakness is the different focus in each organization design. Nissan places strategic focus upon supply kitchen stove management while Renaults strategic focus is upon product development. Therefore there are structural dissimilarities which must be addressed if the alliance is to enable Nissan and Renault to trespass up on each others assets. The challenge in front of the management is to create a end making process which will enable the human resources from both companies to coordinate their efforts so that there is no duplication. This can address the company-specific weaknesses. Nissans financial weakness can be addressed by merchandise the financial management practices from Renault. Similarly Renault can access additional geographic markets in order to maximize its market reach. However in order to meet the demand from additional markets, Renault has to focus upon supply chain management which is Nissans strength. Nissan has embarked upon a apostrophize-cutting initiative to create greater demand for its products. If Nissan can reduce its cost of operations, then it will be able to price its automobiles more competitively. Because of its financial management practices, Renault has been successful in maintaining demand for its products in the market that the automaker currently operates in. However demand in these markets is shrinking. Therefore Renault need to access additional markets in those regions which have growing demand. By forming the alliance with Nissan, Renault has been able to meet this objective. By forming this alliance, Renault will be able to access those markets that Nissan operates in. As a result, Renault will be able to interchange more cars and enhance scale economies. Because of the high costs of new