Table of contents
I. Background ................................................................... Page3 Ã 4
1) Issues ........................................................................ Page 4
2) Objectives ................................................................... Page 4
II. Matra Diagnostic ............................................................ Page 5 Ã 7
1) "Espace Project" ........................................................... Page 5
2) Matra- Renault Alliance .................................................. Page 5
3) Weaknesses of the company .......................................... Page 6
III. Recommendations of Renault-Matra alliance perspectives .... Page 7 Ã 8
1) Key success factors of future market .......................... Page 7
2) Illustration of Matra Perspectives ................................ Page 8
I. Background
Matra Automobile is owned by Hachette- Matra, a large diversified company with business in aerospace, defence, automation, telecom, publishing and automobile
Automobile is not the main activity of the company and so not the only concern. In parallels it is one of the most profitable activity of the firm since 1994
Moreover since mid 1995's, it is one of the most profitable automobile manufacturers with net profits amounting to approximately 10% of sales (Mainly Due to the success of the Espace, sold by Renault and manufactured by Matra)
Dependence of a portfolio compounded of one product for Matra Automobile
One inventor, P.
Guedon
Espace is a myth, a revolution in the car industry by its design and practical using
But,
Strong direct competitors are entering the market in 1995
Growing market period
Lead to saturation within the future
Jointly- produced model trend, sold under own brand with strong advertising campaign
Ford and Wolkswagen
Fiat and Peugeot- Citroen
Renault-Matra agreement until 2001
1) Issues
- Competition
- Market saturation
- Average development time and commercial life span of a new model is 4 to 5 years
- Environmental issues (Recycling, fuel consumption,...)
2) Objectives
- Define product policy for the years beyond 2000 and reconsider its strategy for the next decade
- Evolution of Matra's alliance...
Matra cost structure
Not sufficient mention of favourable cost structure in the pro of Matra Renault alliance: a technology with low fix cost and higher variable cost is particularly suitable for a market in initial stage
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