Peugeot strategy

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320 EMM Manufacturing Business Organisations

Coursework no1


SID: 2919203
Coventry University 2009-2010


Introduction P.3

1. Background to the Company P.4

2. Marketing / Product Analysis P.6

a) Market trend P.6

b) Environmental Analysis P.6


2. SWOT P.8




c) Positioning P.11

3. Competitor Analysis P.12

a) Strategic segments of the automotive sector P.12

b) But what are the advantages of PSA? P.12

c) The competitors on the French market P.13

4. Strategy P.15

5. Conclusion/ Recommendations P.16


The automotive sector is a competitive hyper sector dominatedby world giants almost in Oligopoly where numerous brands compete. Today we can notice that this sector becomes international. So the companies of the French sector become established in emergent zones with strong possibilities of expansion as South America (Mexico, Brazil, and Chile), Asia (China, India, and South Korea), the Eastern Europe (Russia, Poland).

In spite of the financial crisis andthe continuous decline of the purchasing power the French automotive sector goes long after difficult year in 2008 with a decline of 14 % of the sales of new vehicle in November, 2008 with regard to November 2007. Indeed, the French market of the new passenger cars is in increase of 14, 1 % in September, 2009.[1]

Several factors allow to explain the crisis of the sector today in fullquestioning: the constant fluctuations in the price of the essence and the raw materials, the drying up of the credit which threatens henceforth the whole chain, crisis of confidence of the consumers which has the effect of lowering the request, without forgetting the new ecological standards which pull an increase of production costs. These constraints weigh on sales and margins, and oblige the actors torestructure.

PSA, as all the car manufacturers is forced to restrict its production and to revise its traditional strategic axes to be known for PSA: the offensive in products, technical superiority, in particular in the diesel engines, expansion on the traditional markets and conquest of new outlets, politics of platforms rigorous and extension of the cooperation with the other manufacturersto concentrate on deep restructurings. For 2015, an operational program of relaunch was set up. In this perspective, to maintain its strategy of growth, the research for complementarities and for plans of alliances turns out indispensable.

1. Background to the Company

PSA is a French car manufacturer, he is the result of the merger enters "Citroën limited company" and " limited companyPeugeot ", merger which gives birth in PSA Peugeot Citroën holding company, with two subsidiaries of car manufacturing: “automobiles Peugeot " and "Automobiles Citroën". Hardly of it are two non-specialized brands, in the legendary stories, the Group attempts to give to each, within the framework of a coherent produced plan and of coordinated international strategies, clearly asserted andcomplementary personalities. The group adopts the shape of limited company with Directorate and Supervisory Board with a 234.618.266-euro capital. The supervisory board is chaired by Thierry Peugeot, and the President of the Directory is Philippe Varin.[2]

Peugeot is a family company, indeed with 30.27 % of the capital but 45.4 % of the rights to vote, the Peugeot family is always very influential, itwhich holds the reins of the company. The company attaches a big importance for the corporate culture, for the labor-management dialog. Indeed, it received in 2007 the place of number 1 in the labor-management dialog. Indeed, the company employment as well women as men for any post and in equal salary. If the company has to collaborate to see joining with the other car manufacturers it is necessary...
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