Renault Trucks: Remanufacturing as a Strategic Activity Harvard Case Solution & Analysis

  • Communication And Other Weaknesses

Since, this business requires the direct communication with the end user so Renault Trucks may face some issues when it comes to remanufacturing business. Perhaps, it will result in alienating risk the complete dealership set-up because the reason is quiet clear that franchisees and dealers may have an apparent financial motivation to either use new parts or rebuild parts themselves.

Furthermore, the market segmentation of Renault’s customers was completely broken into two segments. For example, the problems between the company and its customers might have originated by those trucks, which were present in bracket between three to seven years of age and have around 12% of remanufactured parts. The second segment that would create such issues was that the trucks have an age of 8 to 15 years with 25 % remanufactured parts. Conflict of interest  between the Renault Trucks and customers might also occur because it was clearly stated that majority of its customers used remanufactured parts because they did not have a proper workshop and did not come under the service arrangements.

The External Environment

In the automobile industry, the trend of using remanufactured part was flourishing in a tremendous manner. In the recent times customers and local mechanics were found preferring the usage of these remanufactured parts. The growing demand and exceptional cost benefits in the industry from all aspects force the Renault Trucks to consider this area of producing remanufacturing parts. It can be said that by working on the production of remanufacturing parts, Renault Truck has given a rebirth to its competitive position in the industry and have created several problems for its rival manufacturers and companies.

By judging the overall industry attractiveness in this regard they can now run parallel to the most updated trends within the vehicle industry. One of the finest advantages Renault trucks would have is that they might not face the issue of brand reputation because they already had a well-established brand name within the industry. Another biggest advantage they could acquire is that they were having a very wellestablished network of sales- and service centers. This network also comprises of a gigantic number of dealers and franchises as well, which would add value to their broad vision. There were also no concerns regarding the funding supply because its turnovers were relatively higher than the company’s expectations.

They make the external environment feasible for themselves by working in an extremely effective manner because they offered a complete range of remanufactured components with the best Standard Exchange system and named as 100% Renault’s brand. One of the best things about this approach was that they distributed all the way through the international dealers network and was available within short time of around 48 hours. Like most of its rivals, Renault Trucks guaranteed the same performance as of the new components and came up with a policy of offering a worldwide 1 year warranty of different equipment, parts and components. These effective moves might create a center of attention for buyers and clients to support the remanufactured products business since they have been assured and guaranteed for its performance.

Analysis Corporate-Level Strategy

The core part of their mission sums up the whole scenario because it tells that they are interested in creating the value for customers by creating the exceptional value for stakeholders. Furthermore, they work through the passion to grow by using their energy and showing respect to individuals.

Business-Level Strategy

Renault Trucks had already established its brand reputation and brand name when it was still there in manufacturing. Although, Renault Trucks diverted itself towards the remanufacturing business but still there was a significant need to re-establish its brand name and status in remanufacturing industry now, which would directly help them to attract further potential clients and buyers.

They actually guarantee the approximately new remanufactured components, which were the same as new when it comes to measuring performance and offering a 1 year guaranty of equipments, parts and components across the globe. It will result in gaining the trust and confidence of the buyers or customers and will eventually result in further growth.

Cost Advantage Analysis


Price of New Part

Price of Remanufactured Part

Fully Equipped Engine



Short Engine



Long Block










They can benefit by using remanufactured parts, which can be seen clearly by looking at cost saving. On average there is a difference of around 61% between the prices of new and remanufactured parts, which reflects that a user can buy remanufactured products even two times as compared to the price of a new one.......................................

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