Overview
PSA group was created in 1976, when Peugeot S.A had acquired about 89.95% stake in Citroen and then the company was named as PSA Peugeot Citroen. It is French based multinational automobile producer and operating in different parts of the world, i.e. Europe, China, Brazil and America, etc… The company had a strong position in the market and it was generating handsome revenues till the end of 2009 and during that era the company was entered into a number of strategic alliances with the other automobile companies, i.e. the General Motors. However, the release of the company’s most awaited sports car RCZ in 2010 was proven unsuccessful and soon after, the company’s management had recognized that it had not generated the expected stream of revenues in the market. Jean Marc Gal, who was the responsible management personnel of the company for management of the Peugeot and Citroen brands, was unable to sell more than 17,000 compartments of the car within a period of one year. Moreover, the failure of this car on the market had alerted the French automobile manufacturers to start a campaign for the restoration of the French automobile makers in the world of automobile industry.
The company had a strong position in the segments of diesel engines, compact cars, sports cars, and in the manufacturing of certain new environmentally friendly technologies, such as the manufacturing of the hybrid power plants, which were designed to use electric motors for transfer of rotation on back axis and the power of diesel for the movement of forward wheels. Besides, these general segments of the company, it had also developed certain special segments and models to meet specific demands of different markets, for example, the company had developed a sedan for the Chinese market because the Chinese didn’t like to use small sized compact cars. It had also manufactured an easy truck for the Brazilian market. However, the company had also introduced the compact minivan 5008 to the market by the end of October, 2009. Moreover, there was a tough competition in the automobile industry and the company was placed in 7th position in terms of annual sales in the world ranking and as second in Europe. The company’s high ranking in the European market was due to the high brand image of its products in France and therefore, its success was strongly dependent upon the company’s sales volume in the sluggish European market. It was facing a tough competition from the Volkswagen group in the European market, which had reported almost double sales figures as compared to that of the PSA group. The company had also faced tough competition from certain German players of the industry, who had occupied about 25% of the Brazilian and 7% of the Chinese market as compared to the company’s market share of 6% in Brazil and only 3% in China.
In order to enhance the company’s brand image and increase its sales at the general level of market, the previous CEO of the company, Christian Shtrayf had reduced expenses and increased focus over the improvement of the qualities of its products. It had also started to increase the development of new models to get entry into the developing countries and certain new segments of the market. This would help the company to stabilize the market share of Peugeot in Europe and also enhance the brand image of Citroen. The company had also focused upon improving its relationships with the existing alliances, i.e. with the BMW, Fiat, Mitsubishi and Ford and also struggled a lot for the development of certain new alliances. This would help the company in making a successful entry into certain new markets and automobile segments, which will improve its sales and ensure a long term leadership over the market. The company had also focused upon the research and developing activities in its Chinese establishment, which was operating in the most rapidly emerging automobile markets following the results of 2009. It had planned to develop certain new models according to the requirements of the Chinese customers and expecting to increase its market share up to 8% by the end of 2015. The company had also focused upon the Brazilian market because of the high growth potential and market opportunities..................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
Related Case Solutions & Analyses:
Too Many Parents Part A: Governance of Bostons Rose Kennedy Greenway
lululemon athletica: The Wholesaling Decision
Blackheath Manufacturing Company
Roundabout Theatre Co. (A)
Emergence of an International Accounting Standards Setter
Boeing Co.s Accounting for Executive Stock Compensation
Global Accounting Convergence & Potential Adoption of IFRS by the United States (Part II)
Hemo-Tech Inc.
Hootsuite: Monetizing The Social Media Dashboard
Jeff Salett. From the Top Sort of (A)
