PSA Peugeot-Citroën Company is a French car manufacturer, property of Peugeot family. In 2010, the company was the leader car manufacturer in France and the second in Europe taking over Volkswagen . Nevertheless, PSA had to face some issues. As a strategy consultant for PSA, my aims are to solve these problems. Thus, I decided to analyze the "Organizational structure", that means the internal business of the company then I will work on the "Macro environmental and industry analysis" trying to find an appropriate strategy.
I chose to study the internal situation of the company to establish a complete diagnosis before setting up a strategy. I began with a functional analysis of the organization. This allowed me to identify the strengths and the weaknesses of each internal functions of PSA because they are necessary before the elaboration of an action plan.
Then I analyzed the key factors of success imposed by the environment. It is essential for a company to know and control these elements to remain competitive in the market. The market and the purchasing behaviors evolve faster, a company has to remain informed of these factors as it can lead to the risk of losing market shares.
Finally, I studied the value chain of PSA. According to J. Gopalkrishnan , "the value chain is a systematic approach creates by Michael Porter to examine the development of a competitive advantage. The chain consists of a series of activities adding some value. They end in the total value supplied by a company." The key factors success and the value chain are both necessary to understand the nitty-gritty of the company operation in order to have a competitive advantage
[...] Corporate and business strategy of PSA Peugeot-Citroen PSA Peugeot-Citroën Company is a French car manufacturer, property of Peugeot family. In 2010, the company was the first car manufacturer in France and the second in Europe behind Volkswagen[1]. Nevertheless, PSA had to face some issues also there were some problems to be solved. With respect to this the “Organizational structure, macro environment and industrial strategies” of the Company must be analyzed. Before knowing where we go, it is necessary to know who we are. [...]
[...] Competitive Rivalry: In the case of PSA, the competition is very important. Many actors already exist in the automobile market. Potential Entrances: The market is already composed of important actors, a threat; new competitors' entry can weaken the group. The majority of current manufacturers on this market are well implanted in consumers mind due to their history. Buyers: The dependence toward the buyers is quite strong and the second-hand market is very threatening for the car manufacturers. Suppliers: But there too, the dependence is very important. [...]
[...] The main strength of PSA is to offer wide ranges of products for every need. For example, the model SW developed by Peugeot transformed the classic models of the brand into station wagon models (207sw, 307sw, etc.). Moreover, for the professionals, Peugeot and Citroën proposed a wide range of commercial vehicles (Partner, Berlingo, etc.). These two brands are also very involved in the small urban vehicles market and offer each their models. In order to reduce the costs and facilitate the production of vehicles, Peugeot and Citroën use a platform, sharing management[4] which consists to use the same bases for the vehicles of equivalent range. [...]
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