Peugeot in the United States (2006)

Résumé du document

A MNE (Multi National Enterprise) is a company that has an integrated global philosophy concerning both domestic and overseas operations. It means that these companies have to adapt their strategy and structure according to their different actions, knowing that today's marketplace is very dynamic and changing very rapidly. MNEs just have to find the appropriate strategy and structure the best matched to their needs. Global expansion can be profitable for most of these firms, but there are a lot of diverse strategies they can adopt to compete globally, and a lot of new market they can try to enter. Worldwide expansion can consist in a simple transfer of the skills and products from their core market to other ones where the local competitors lack those competencies. MNEs just have to find the appropriate strategy and structure the best matched to their needs. Global expansion can be profitable for most of these firms, but there are a lot of diverse strategies they can adopt to compete globally, and a lot of new market they can try to enter.

Extraits

[...] Historic Peugeot is a car brand that belongs to the French manufacturer PSA Peugeot Citroën. Founded in 1976, PSA Peugeot Citroën is now the Europe's second largest carmaker, with a market share of 14,3% there in 2005, and it is carrying on its international expansion, with more than one million car sold outside western Europe. With Renault and Citroën, Peugeot is one of the three major French car brands, and it is the oldest above them (the lion's logo brand exist since 1882). [...]

[...] In Peugeot's case, this opportunity seems beneficial - since the market's characteristics fit with the group's objectives - giving to the brand more outlets and permitting it to assert itself as a major car manufacturer, competing the most important automobile market and the most disputed one. With the international experience brought in for the group, Peugeot is now able, after the 1991's failure, to compete among this American market thanks in particular to its wide range of cars. It seems to be the ideal time to set up in this market. [...]

[...] Indeed, General Motors holds 24,3% of the market in 2006 whereas Toyota carries on improving its market share, with now 15,4% in Uncle Sam's country and the second market share, ahead of Daimler-Chrysler. This market is, like in Europe, very disputed, but following the principle that "if any product can succeed in the US, it can succeed anywhere", and knowing the importance of this industry there, it is to bet that the French brand has a lot to win trying to integrate this market. Peugeot already had an experience on the US market. [...]

[...] With the 220 millions people living in this zone, and the billion and three millions living in China, Peugeot and the entire PSA group have the intention of reaching a lot of new consumers. It planned moreover to introduce ten new car models on the market, so that one third of the products offered would be renewed. At last, an important objective is to reduce notably its costs; 600 millions per year should be saved, thanks to a unified production system. [...]

[...] Contrary to them, Mitsubishi, which is in trouble in this market, could be interested. Sharing its American network with the Lion's brand in compensation of sharing its important financial resources could be interesting for both. Mitsubishi depends a lot on its upcoming Outlander: a responsible of the Japanese brand stated considering withdrawing from this market if the new 4x4 is not successful. As the 4007 and the Outlander are built on the same bases, the groups could even share the production centre, so spread their cost and giving themselves more chances to be successful. [...]