Academic journal article Journal of the International Academy for Case Studies

Renault Yahoo! Argentina

Academic journal article Journal of the International Academy for Case Studies

Renault Yahoo! Argentina

Article excerpt


This case challenges students to develop a strategy to grow Renault's business in Argentina, now that the economy is recovering from the severe economic disruptions caused by the fact that in 2002 Argentina defaulted on its debt and was declared bankrupt. The case is based on data collected by one of the authors in Argentina. The case is appropriate for senior-and level undergraduates as well as students in MBA and Executive Development programs. It is designed to be taught in a one hour and a half? class session, and is likely to require at least a couple hours of preparation by students.


Mr. Pedro Gouzou is Vice President of Marketing for Renault Argentina S.A., the Argentine subsidiary of the French automobile assembler and marketer, Renault S.A. Due to Argentina's default on its sovereign debt and the subsequent deterioration in the economic environment in Argentina, Renault's sales of new cars in Argentina fell dramatically. In 2003, for the entire country of nearly 40 million people, demand in Argentina for new Renault vehicles averaged slightly more than 40 vehicles per day. At the end of 2004, however, with the Argentine economy now recovering quite strongly, Renault is eager to rebuild sales. Additional data and information in the case include:

1. For Argentina: Historical overview, a sample of recent statistics from the World Bank, and (for benchmarking purposes), comparable statistics for the United States.

2. For the company (at both local and global levels): Historical overview, current performance, and numerous factors impacting that performance.

3. Characteristics of the local company's current strategy, including descriptive information on the product line, characteristics of the distribution system, information on the promotion and pricing strategies the company is currently using, etc.

4. Characteristics of the current competitive situation.

5. Detailed data on the attitudes and behaviors of buyers of cars in Argentina.


As indicated in the case, the situation faced by Mr. Pedro Gouzou, Vice President of Marketing for Renault Argentina (hence, RA) is that he has been charged by his CEO to increase (within the next twelve months) sales of Renault cars in Argentina by 15%. As regards lessons and/or information which students should learn from this case, at least five points can be made:

1. At the beginning of the case, students will need to consider the extent to which developedworld models and conceptual frameworks can be applied to challenges and opportunities in the developing world. By the end of the case discussion, they will have discovered that some conceptual frameworks (for example, the development and use of "growth through innovation" strategies) can be useful guides to managerial action not only in the developed world but in the developing world as well.

2. Students will be able to compare their solutions to the one developed by the hero of the case, that is, Mr. Pedro Gouzou, Vice President of Renault Argentina.

3. Students will discover that a manager's conceptual framework (in this case, a "growth through innovation" strategy drawn from a set of alternatives suggested by Sawhney et al. (2006) and then fleshed out using a model very similar to one proposed by Urban and Hoffer (2003)) powerfully impacts the nature of the process and/or options used to turn a business around. Specifically, a Sawhney et al.-based approach to rebuilding revenues and profitability is likely to differ considerably from a plan to rebuild revenues and profitability based on alternative conceptual frameworks such as "turnaround strategy" or "marketing strategy."

4. As they work through the case, students are exposed not only to a bit of information on an important South American market (Argentina) but also to a bit of history on Renault Argentina, a company which has persevered for more than 50 years in Argentina, experiencing in some years huge profits, in some years huge losses, but currently enjoying (as the economy continues to recover from the bankruptcy of 2002) a high level of success. …

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