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.
[...] In 2009, PSA Peugeot Citroen has weathered the collapse of the market, limiting the decline of its sales - and slightly increasing its market share to Today, the Group prepares for market recovery through the expansion of its offering. Besides, China wants to reach a critical mass in the \world market. The largest global car market, China is also the second largest group. PSA Peugeot Citroen has the ambition of becoming a major player, and to reach market share in 2015-2016. In 2009, PSA Peugeot Citroën made a record year and returned to the path of growth, with a 52% increase in sales to 272,000 vehicles. [...]
[...] 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 the rising sun China is one of the most important countries in the world, with 1500 billion 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 leader of the world. China is a country of contrasts, with a GDP of 5,745 billion, which represented a increase in 2010; we discover a rich and prosperous country. Moreover, the Chinese will soon be the third global distributor of automobiles. [...]
[...] In 1992 it set up a joint venture with “Dong Feng Motor” (Chinese truck manufacturer): thus the “Dong Feng Citroen Automobile Company” (DCAC) was born. The Dong Feng Motor has never been used to market in the sense that we understood in the West. It took delivery of the cars and sold them in this country. The road was long but the negotiations that led to the creation of the joint venture in 1992 began ten years ago. The bet was big, and it was risky to operate in China. [...]
[...] How does Peugeot build up a competitive edge against the Chinese and foreign car industry? SUMMARY INTRODUCTION I. The building up of a competitive edge globally II. How does Peugeot plan to enter on the Chinese market and complete against the Chinese car industry? CONCLUSION APPENDICES INTRODUCTION In 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. [...]
[...] This is the introduction of the second platform of PSA Peugeot Citroen in China, introduction to the construction of engines in the area of Xiangfan, and to reinforce the Peugeot Brand. While continuing the development of the Citroën brand, the French company established a sales network to distribute the vehicles of the brand Peugeot. Gradually PSA Peugeot Citroen created a reputation and sought to conquer the Chinese market. After all its years of Joint-Venture and partnership (Appendices PSA Peugeot has created a name and image in the minds of Chinese consumers. Now PSA Peugeot has built a reputation and image of a competitive foreign company. [...]
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