Matra Automobile 2002: A RENAULT ESPACE Odyssey

In the spring of 2002, Matra-Automobile found itself at a crossroad: after the exceptional success story of the Renault Espace, which lasted for over 15 years, the situation of Matra Automobile is critical : The Lagardère Group has announced its intention to withdraw from the automobile business, Renault has decided to transfer the manufacturing of the new Renault Espace to one of its own factories, the commercial prospects of the Avantime are quite uncertain and the launch of another product (the m72) has not yet really been decided. What a paradox ! This company, which had broken all the profitability records of its sector, is close to bankruptcy. Despite a profitability track record that was exceptional for the sector (10% gross margin for several years running) and which made Matra Automobile the most profitable subsidiary of the Lagardère group and one of the most profitable car manufacturers in the world, potential buyers are not showing up. This situation, described in the case, will result in a disaster a few months later : the manufacturing of the Avantime will cease after only 5000 units. The Matra Auto factory will close and its employees will be laid off.

The Matra Auto case brings about two essential themes in corporate strategy :
1. The notion of differentiation and the conditions in which such a strategy creates a sustainable competitive advantage.
2. The notion of strategic alliance, in particular the ambiguity issue of complementarity/rivalry (or, more simply, co-operation/competition) within the alliance.

Competitive advantage - Business strategy - Competition - Strategic alliances - Differentiation - Partnership

Business Schools - MBA - Management Masters - Executive Education

Car Manufacturing

Very detailed analysis with a complete background with all the figures, as well as a precise comparison with the competitive strategies (Peugeot, Fiat, Ford, Volkswagen). PowerPoint slides included. Updated English version of G0837. Video in French (22 min.) available for use with this case.

Année de la problématique : 2002

Livraison : Livraison par lien de téléchargement + DVD par voie postale

Nombre de pages : 26