Swot Carmaker Renault Brazil

Brazil

The country :

Brazil is the most developed country in Latin America with Chile and offered the most encouraging prospects for several reasons.

Factors : return to democracy, deregulation of economies, success in terms of economic policy and the regional integration process in Mercosur.

Economic recession marked by the devaluation of the real.

The car market :

During the 90s, Brazil has become the new Eldorado of the automotive industry with 11 new manufacturers (the "newcomers") are located there, including Renault, and the four historical (General Motors, Ford, Volkswagen, and Fiat) have launched new investment plans. It's an expanding market with a huge potential, so the market is attractive. The car market is obsolete.

High customs fees to import.

Entry strategies :

Renault decided to enter this market by direct implantation. Actually Renault created a local manufacturing. So, the car constructor enters in the Brazilian car market by direct investment.

I- SWOT :

Opportunities Threats

* most developed country in Latin America

* return to democracy

* deregulation of economies

* success in terms of economic policy

* tax benefits

* expanding market

* market size

* competitors have no modern production tools

* obsolescence of the local car market

* segmentation strategy

* market is attractive * cars are perceived for the rich people

* economic recession marked by the devaluation of the real currency

Strengths Weaknesses

* first newcomers to invest

* knowledge of previous international strategy

* creation of the Bank Renault for consumers to finance cars

* marketing ability and capacity * no model in the segment the most dynamic ("carros * populares")

* knowledge of the market to competitors already present

II- Mix marketing :

Product :

Renault had understood