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Strategic management Sample

Introduction on Strategic management

Strategic management assesses and explains about the strategies that a company requires to achieve its corporate goals and it has become a crucial aspect for a business enviroment help that covers a range of reasons and is considered as the pathway for success (Carter, Ulrich and Goldsmith, 2012). From the organizational trend it has been observed that more organizations succeed using a strategic system management approach and it facilitates in critical thinking for business.

Question 1

This alliance is an inimitable partnership between two companies that has been associated for combined performance and has developed a national automobile group at global level and it combines two organizations strengths and has helped to make a synergy by preserving self sufficiency and creating brand uniqueness. Both the companies have a diverse core competency which assists them to achieve organizational goals (Root and Visudtibhan, 2002). In this respect Renault's core competency incorporates that the services and vehicles it supplies is made to achieve total satisfaction of customers and create a peace - of - mind relationship with long term loyalty of buyers.

Synergy is vital in any kind of alliance as it makes it more rational and it helps in managing the technological and financial aspects of business. The double energy between Renault and Nissan is the main element for this alliance with their core competency and according to the management of these two companies they did not went for a merger rather than for alliance as they were seeking for a turnaround as it will probably give more opportunities to develop and increase the market share of company (Ansoff, 2007). On the basis of structured analysis the operating environment of this company it can be said that company can acquire a major competitive edge from its prime strengths and i.e. both the corporations competencies in different areas.

Question 2

Strategic alliance is a preferred strategy by numerous companies that seeks to enter into new geographical territory and with the help of partnership and local expertise both the companies can consistently grow and comprehend that important set of skills is needed for a company to acquire maximum return with alliance and represent them as a growing attribute as well (Crossan and et. al., 2011). Strategic alliance in any business provides a kind of versatility that helps into create a new viable market option and it facilitates companies to address them more efficiently and understand the complexities of present highly competitive global market place.

From the case study it is evident that strategic alliance provides swift growth by tackling the market alone and acquires growth through acquisition. In the previous time cost effective approaches in the area of value chain that is vertical integration is the mode of choice for business and here in most important attribute is focus that gives a company competitive edge to represent itself. The strategic alliance between Nissan and Renault is a Japanese-Franco partnership that is accomplished among automobile manufacturing companies and is based in Paris, Franc, and Yokohama, Japan (Marren, 2012). Through this alliance they have not created any kind of new identity but main focus has been given to cooperate while maintaining their individual brand identity with independent organizational culture in order to develop their own respective commercial international networks and technologies all around the world.


From the above discussion it can be concluded that the strategic alliance between Renault and Nissan is a successful growth strategy and it provided numerous benefits to both the companies. It is evident from the case that both the company employs prominent growth strategies by mutually respecting each other's corporate culture and efficiently utilizes their respective core competencies to bring a totally new product in the market and acquire a competitive edge in the industry with global expansion. However, both the company faces numerous challenges and risks with this strategic alliance but managed to survive and grow themselves by adequately by bringing innovative products.


  • Ansoff, I. H., 2007. Strategic Management. Palgrave Macmillan.
  • Baack, W. D. and Boggs, J. D., 2008. The difficulties in using a cost leadership strategy in emerging markets. International Journal of Emerging Markets. 3(2).pp. 125-139.
  • Baena, V., 2012. Market conditions driving international franchising in emerging markets. International Journal of Emerging Markets. 7(1).pp. 49-71.
  • Carter, L., Ulrich, D. and Goldsmith, M., 2012. Best Practices in Leadership Development and Organization Change: How the Best Companies Ensure Meaningful Change and Sustainable Leadership. John Wiley & Sons.
  • Cole, A. G., 2003. Strategic Management. 2nd ed. Cengage Learning EMEA.
  • Crossan, M. M., and et. al., 2011. Strategic Analysis and Action. 8th ed. Pearson Education Canada.
  • Fleisher, C. and Bensoussan, B., 2007. Business and Competitive Analysis: Effective Application of New and Classic Methods. FT Press.
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