School of BusinessSara Värlander
Case 3
prostate specific antigen Peugeot Citroën: Strategic Alliances for Competitive Advantage
sort 16
Maria Raychuk
Marina Oliveira
Nuno Luis
Patrik Pålsson
Sébastien Argoullon
Contents
1. Introduction3
2. Reasons for to form alliances4
3. Advantages and disadvantages when forming alliances5
4. Transferability of PSA’s strategic alliance recipe7
5. Trade-off amidst outsourcing and in-house production8
6. Future challenges and how to tackle them9
7. References12
1. Introduction
In 1970’s Europe, turnaround to the USA where the Big Three (GM, Ford and Chrysler) had a similar oligopoly situation, there were many car makers who fought each other to draw in bigger market shares. This competition between the German (Volkswagen, BMW, Mercedes…), Italian (Fiat), cut (Renault, Peugeot, Citroën), Spanish (Seat) and Swedish (Volvo) or even US (Ford, GM-Opel, Chrysler Europe) car makers was intense. Because of different products, tariffs, nationalism, cultures and local taxes, no one correspond more than 10-12 percent of the whole European market.
In that time, Peugeot was a symbol of capitalization, “à la française”. Peugeot used to be a family own firm, making low-risk strategic choices. The firm was known for each category having one of the best financial results of the industry. However, this was not enough for the French company and if it wanted to continue to be competitive in the European mass market, Peugeot had to look for economies of scale. Meanwhile, Citroën who belonged to Michelin faced a disastrous crisis due to a lack of modern and frugal cars and the non-utilisation of diesel motors (a highly demanded feature following the 1973 energy crisis). Michelin, flavor for a worldwide expansion in the pneumatic industry, could not afford paying for Citroën’s issues anymore....If you want to line up a full essay, order it on our website: Orderessay
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