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Illustrated with the case of Renault-Dacia in Romania we aim to give insights in how and why foreign car makers contribute to upgrading. In addition, we analyse the spatial implications of this process for different parts of the value chain.

We divide the investments of Renault in Romania in different stages. In each stage we analyse in which functions the car maker invests, in which place, why, and which implications this has for upgrading. The empirical data stems from in-depth interviews with Renault managers, engineers and designers in Romania and in France and from further corporate information, including annual reports, press releases and web sites.

We show that Renault contributes to all types of upgrading, starting with product and process upgrading in the first stages, while in later stages it also invests in functional upgrading. It does not only upgrade its own subsidiary, but also suppliers and knowledge institutes. Concerning the value chain, we see that Renault keeps the basic research and control functions in the home base, while it performs all other functions in Romania as well.

Via the concept of upgrading analysed in various investments stages we provide managers insights in which parts of the value chain they should invest when entering a new market.

Although the case Renault-Dacia is relatively well known as an example of a low cost strategy, this article analyses the investment strategy in different stages in time and takes into account various parts of the value chain and upgrading.

Moldova is one of the smallest constituent Republics of the C.I.S., with a population of just 4.3 million inhabitants. In agrifood terms however, Moldova has traditionally been one of the key “food baskets” for the rest of the former Soviet Union. Nowhere is this more marked than in the production of wine, with Moldova still supplying 20% of the total wine production of the former Soviet Union. In Central and East European terms the Moldovan wine industry is substantial; producing annually as much wine as Hungary and “Czechoslovakia” combined. This paper provides an overview of the Moldovan wine industry, highlighting key production and structural difficulties facing it as it attempts to gain access to hard currency earning markets outside the former Soviet Union. In particular, the problems caused by the recent reversion to the traditional monopoly‐monopsony structure within the Moldovan wine marketing channel are analysed. Suggestions are made for true liberalisation of the Moldovan wine marketing system, based upon three elements:‐ (i) De‐nationalisation, and a move to new private structures of ownership of Moldovan wineries; (ii) Modernisation of vineyard practices and production methods, driven by private incentive. (iii) The establishment of effective networks of marketing and distribution, based upon private wineries pursuing real markets.

Competition is a major driver of industry consolidation, pushing firms towards mergers or alliances. This paper discusses growing competitive challenges that make business partnering a core component of company strategy. We develop two frameworks for resource sharing using two dimensions: operational integration, and knowledge transferability. We analyze critical interface points at three levels in organizational design: corporate, business unit, and functional, and show that mergers could succeed without high level of integration. Large groups such as Renault and Ford witness such industry pressures from globalization, lower government protectionism, and shifts in buyer tastes. The framework illustrates preservation, incubation, osmosis, and full absorption as post-merger firm relationships, each requiring alignment with corporate strategy. The frameworks are illustrated using the Renault-Nissan relationship, the motivation behind it, its benefits, and its challenges.

The major issues discussed in the case are related to first-mover advantage, segmenting, targeting and positioning and marketing strategy.

The case could be discussed in a postgraduate program for marketing and brand management and also for strategic management. It could also be used for an executive development program for marketing and business strategy.

The present case is on the Renault Duster, a compact SUV (sports utility vehicle) launched by Renault India in 2012. Equipped with attractive design, innovative features and smart technology, the company used buzz marketing and social media marketing to promote the brand. Competitive pricing of Duster attracted both premium hatchback and sedan buyers in India as the company realized both sales and awards. However, sales started declining from the second half of 2013, and competition used both pricing strategy and exhaustive mass media advertising to compete with the Duster. The other cars from Renault India could not replicate the success of the Duster, which was contributing to around 80 per cent of the total sales of the company in India. Renault thus faced the challenge of losing their ground in the Indian market if they could not revive the sales of the Duster.

Product differentiation and brand positioning (the case is a good example of first-mover advantage); market segmentation and creating a new segment; branding strategy and the role of marketing communications in the same; analyze the role of a long term growth strategy and how it influences product/marketing strategy (business strategy course); understand the probable threats of business due to overdependence on one product (business strategy course); understand the impact of inter-firm rivalry on brandsuccess (business strategy course).

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This paper develops and proposes a game theory model that illustrates the effect of privatization on firm competitiveness using cases from the automotive industry. We first provide the mathematical derivation of the model for a competitive industry then address the special case of a duopoly. We chose the automotive industry as it is a relevant illustration of global competitive pressures pushing firms to develop strategic alliances or consolidate. The model shows that privatization has (1) a positive effect on firm performance given that managerial incentives are well defined, and (2) facilitates the firmʼs entry into strategic alliances. We then turn to discuss Renaultʼs empirically observed success factors in the European - and gradually global - markets over the last three decades despite the economic cycles.