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Prize winner
Published by: WHU - Otto Beisheim School of Management
Published in: 2010

Abstract

Since its launch in 2004, the Dacia Logan conquered not only emerging but also developed markets with its one of a kind price-performance mix selling more than 1.2 million units until 2008. The Logan helped Renault - Dacia''s parent company - to gain a competitive edge in the booming low cost car market worldwide. Originally aiming at emerging Eastern European markets the no-frill car was the result of a visionary strategy of Renault''s CEO, Louis Schweitzer. The case tells the story of this extraordinary new product development project aiming for ''just enough'' functionality of its outcomes and not all technologically feasible bells and whistles. It describes both established drivers of new product development performance known from developed markets, as well as specific determinants of success in the emerging market context. The first group encompasses among other things a clearly defined strategy, top management support and the use of so-called heavyweight project teams. The second group highlights the necessity to develop new products from scratch, a gradual shift of responsibility for such products to emerging markets, a far-reaching customer orientation and an innovation culture acknowledging simplicity and robustness of products. Finally, Dacia''s future strategic challenges are briefly mentioned. The case is suitable for both graduate students, as well as executive development programs.
Location:
Industry:
Size:
About 130,000 employees and about EUR38 billion revenue
Other setting(s):
1998-2008

About

Abstract

Since its launch in 2004, the Dacia Logan conquered not only emerging but also developed markets with its one of a kind price-performance mix selling more than 1.2 million units until 2008. The Logan helped Renault - Dacia''s parent company - to gain a competitive edge in the booming low cost car market worldwide. Originally aiming at emerging Eastern European markets the no-frill car was the result of a visionary strategy of Renault''s CEO, Louis Schweitzer. The case tells the story of this extraordinary new product development project aiming for ''just enough'' functionality of its outcomes and not all technologically feasible bells and whistles. It describes both established drivers of new product development performance known from developed markets, as well as specific determinants of success in the emerging market context. The first group encompasses among other things a clearly defined strategy, top management support and the use of so-called heavyweight project teams. The second group highlights the necessity to develop new products from scratch, a gradual shift of responsibility for such products to emerging markets, a far-reaching customer orientation and an innovation culture acknowledging simplicity and robustness of products. Finally, Dacia''s future strategic challenges are briefly mentioned. The case is suitable for both graduate students, as well as executive development programs.

Settings

Location:
Industry:
Size:
About 130,000 employees and about EUR38 billion revenue
Other setting(s):
1998-2008

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