RENAULT YAHOO! ARGENTINA
D.K. (Skip) Smith, American University of Nigeria
Carlos A. Aimar, Centro Universitario San Isidro
Jorge Fajardo, Universidad de Palermo
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
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