International marketing car industry

Résumé du document

If a French car manufacturer like Peugeot would like to launch a hybrid car on the American market, it has to know that it could be hard and there is few studies to know in order to be better and do not fail. An electric car is a really particular car that is not appreciates by everyone. If a company would like to launch that kind of product around the world, it has to know how people consume, what they like, what they want and how they feel.

In a first part I will explain the reactive and proactive motives for exporting this product abroad. Then I will show you the company's international competitiveness at the macro, meso and micro levels. Then the economic and political barriers will be show. In the fourth part, I will explain what kind of influence can have the culture on the international marketing strategy. Then in different part I will show you: the different types of entry modes that Peugeot should consider, the limitations of an acquisition, the International Product Lifecycle for a hybrid car, the effects of the exchange rates and inflation for that kind of product for and exchange between France and USA.

Extraits

[...] Explain how personal selling may differ in the US from how it is used in France. “Personal selling is oral communication with potential buyers of a product with the intention of making a sale”[6]. The personal selling is based on the method of how to create a relation with the buyers with communication. Between France and the United States, the personal selling is different. The habits are different so you cannot attract American people like you are doing in France. [...]

[...] What would be the limitations of acquisition as an entry strategy? In order to increase the economic activity and also its profits, Peugeot could do an acquisition as an entry strategy. Nevertheless, this strategy has some limitations. By doing an acquisition, Peugeot would like to have the monopole on the market. But there are few limitations to that method. If a company wants to do an acquisition, its global cash flow in the world will need to be more than 5 billion of euros[4]. [...]

[...] Buyers: the buyer is more and more aware to the power of their car. The buyers want to decide everything according to the price, the quantity, etc Substitutes: American people could prefer to buy another type of car (the one which consume less and which are not hybrid, in order to spend less money and keep a good power). Suppliers: the French manufactures will have to take care about the suppliers who want to impose their market conditions: they have to be adapt to the suppliers needs. [...]

[...] The inflation is really important in economy. We need all the time to be focus on that. It may affect the way we price the product if we want to continue to be competitive with the competitors. The general inflation will be follow by an increase of our product's price in order to follow the market fluctuations. But, even if we can find some customer advantage and also the supplier advantages, there are also some disadvantages that are really important to know. [...]

[...] If a company like the French car manufacturer would like to be present and launch a product like the hybrid car in the United States, it will need to take care about the exchange rates and also the inflation. In France, we are using Euro and in the United States, the Dollar. An exchange rates variation could affect the competitiveness of our products: more or less expensive, depending if the country where we are launching the product is devaluing or revaluing the money. [...]