Swot Analysis Of Dacia

Mission of Dacia

The primary mission of Dacia is to support its mother company Renault to enter new markets by taking over production and sales in different global markets. In addition to that, Dacia sees itself as an innovative company which is focussed on providing best products at affordable prices. Recently, the company in alignment with its mother company Renault has been pushing to reduce the environmental impacts of automobiles. The program ‘RABLA’ has be initiated to facilitate this goal of the company. [6]

Dacia Market Analysis

SWOT Analysis

a. Strength

• Overwhelming support from Romanian government

• Updated production plants following the merger with Renault

• Open access to European markets

• Diversification of models

• Strong

Nevertheless, its success story is something that the whole group Renault including Dacia can be proud of and can also be used a strategic model to sell cars in developing markets. Renault’s first model in India, the Logan launched in 2007 in partnership with Mahindra & Mahindra was a complete disaster. After the failure, Renault decided to operate alone by building its own factory in Chennai. Renault identified a gap in low and medium-priced SUV segment in India and decided to bring its much-acclaimed model, the Duster to India with some modifications designed to suit Indian market. It took 24 months and countless surveys and analysis to find out the design specification that suit the pulse of Indian customers. During one survey, the designers stayed with 30 selected customer’s family to understand their needs and expectations. An incredible 41 modifications we done to the European Duster including Dual tone air conditioners, power window switches on all the doors, rear air conditioners, higher ground clearance, increased mileage of minimum 20 km/litre etc which were not necessary in European markets. A prototype of the modified Duster was offered to customers to understand the feedback. The model was officially launched in the price segment of Rs 7 to 12 lakhs in the year 2012 and literally took the segment by storm. Renault Duster is still the most sold car in the compact SUV segment in India with a

• Care must be given to the fact the Renault, the mother company is a prestigious symbol of French automotive prowess. The push to new frontiers should not come at the cost of Renault losing ground in its own playfield, France. The automotive industry in most of the advanced economies are struggling with shortage of skilled workforce and Renault is no different from this. Dacia, with its strong presence in several developing economies can help Renault by supplying additional workforce from its labour pool in developing economies.

• The threat from the competitors is persistent and unavoidable. As a brand Dacia must find ways to distinct itself from its competitors. For years, low cost cars were Dacia’s USP but now even big players like Volkswagen or Toyota are starting to offer products which are in direct competition with Dacia’s products. Dacia must embrace diversification, vertical and horizontal integration to stay