Fiat-chrysler case study

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Fiat-Chrysler case study

1. Make a PESTEL analysis, trying to identify the key drivers of
change can have an impact on the car manufacturing industry.

2. What are the key success factors inthe car manufacturing industry?

3. Compare the Daimler-Chrysler alliance with the Renault-Nissan one.
How have they worked? What does it take to make an alliance successful
in this industry?Michaël

First of all, Daimler-Chrysler believed that the merger would resolve all problems that they faced whereas Renault and Nissan have another thinking about alliance.
Indeed, it was designed to bea collaborative partnership, the alliance was also attended to maintain separate brand and corporate identities. This is an important point, particularly for the customer. Indeed, traditional Daimlerconsumers were accustomed to paying premium prices for luxury whereas the Chrysler ones purchased moderately prices. So the Daimler consumers perceived their brand to be tarnished by the association.An another point is the fact that Renault and Nissan stayed separate group and there was only one chief executive (Carlos Ghosn) of both companies whereas there were two chiefs (Jurgen Schremppand Eaton) for Daimler Chrysler. This point led to some differences in leadership styles, decision making and even behaviour at work for Daimler-Chrysler.

Then, Renault and Nissan were able to worktogether, to share platforms, technologies and manufacturing methods. For Daimler-Chrysler, cost-cutting was limited by the incompatibility of parts because Daimler was focused on luxury cars whereasChrysler is more focused on pick-up, minivans...
Moreover, they designed a team especially to oversee these synergies were captured which was not the case with Daimler Chrysler. Using a team tooversee the synergy between the two group is a very good idea which make you sure that everyone is working together and the link between the two groups is efficient.

Finally, Renault and Nissan,...