How does Peugeot build a competitive edge against Chinese and foreign car industry

Résumé du document

In this report, we focus on the PSA Peugeot Citroen group. Firstly, we will analyze the company and its features and key data. PSA Peugeot Citroen group is a French car manufacturer, and is the result of a merger between Citroen and Peugeot Limited companies. Thanks to the framework of a coherent marketing and production plan and an international vision, the group is ranked as the seventh largest car manufacturer in the world with more than four million vehicles sold in 160 countries.

The company is organized around five main industry segments: Automobile division, Faurecia, expanding sales in the Chinese market (partnerships with Geely-Limin and Xuyang), GEFCO specialized in integrated logistics for industry, PSA Finance Bank, and the seating, front end Exhaust Systems Businesses. All four Business groups are now active in China.

Their success is due to their capacity, creativity, technological innovation and from the two strong and complementary brand's identities. The group is actively expanding its production in the Chinese, Latin American and Russian markets. There is a strong rivalry with the existing players on the European automotive market, as Volkswagen, BMW and Mercedes.

The new competitors have a poor power of negotiation, because it takes time before representing a real threat. The threat of substitutes is more powerful with the commitment to the environment. The power of the buyers is very high because they control the demand. The clients of PSA are individuals who buy little cars and firms who buy high-level cars. The suppliers have a real power of negotiation with PSA in terms of pieces. However, PSA takes the advantage in terms of turnover.

Furthermore, the group is the second largest on the European Market and the European Union regulations impose additional costs and obligations on the group and would affect its margins. Then, we will deal with how PSA overcame it. Finally, we will see how PSA penetrates the Chinese and foreign market to build a competitive edge against them.

Extraits

[...] How does Peugeot built up a competitive edge against Chinese and foreign car industry SUMMUARY INTRODUCTION I. The built up of a competitive edge world wild II. How does Peugeot plans to enter on the Chinese market and complete against the China industry car? CONCLUSION APPENDICES INTRODUCTION On this report, we focus on the group PSA Peugeot Citroen. Firstly, we will analyze the company and its features and key data. PSA Peugeot Citroen Group is a French car manufacturer, and the result of a merger between Citroen and Peugeot Limited companies. [...]

[...] They believe in the importance of the experience of age, the more you are old, the more you know about business; it's more profitable for company to negotiate with Chinese who's a man of experience. These rules are available for a first contact with a Chinese company when you want to make merchandise in China, but to set up a company or a subsidiary in China it's easy. The Chinese government has a centralizer power. Every decision is taken by the government and the foreign investor, business men or company are obligated to refer to the government for implementing a structure; due to communism. [...]

[...] On the third hand, China wants to reach a critical mass in the first world market. The first global car market, China is also the second largest group. PSA Peugeot Citroen has the ambition of becoming a major player to reach market share in 2015-2016. In 2009, PSA Peugeot Citroën has made a record year and returned to the path of growth, with a 52% increase in sales to 272,000 vehicles. The Group continued its marketing offensive with the launch of the Citroën C4 and C5 China, and Peugeot 408. [...]

[...] The group is actively expanding its production in the Chinese, Latin American and Russian markets. There is a strong rivalry with the existing players on the European automotive market, as Volkswagen, BMW and Mercedes. The new competitors have a poor power of negotiation, because it takes time before representing a real threat. The threat of substitutes is more and more powerful with the commitment to the environment. The power of the buyers is very high because they control the demand. [...]

[...] Source ACEA Appendices 7 Schedule PSA Peugeot Citroen in China and its partnership Appendices 8 - PSA Peugeot Citroen partnership China: 2nd Biggest market for PSA Peugeot Citroen China: Specific expectations - Chinese / European buyer's comparison Source: PSA Peugeot Citroen Appendices: Chinese Culture The culture of business in the country of rising sun China is one of the most important countries in the world, with 1500 billions of habitants; this is the most habited countries in the world. China is the second largest economy in the world with Japan. According to financial experts and the economists, in 2020 the Chinese economy will be the first of the world. [...]