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Peugeot in the United States (2006)

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  1. Introduction.
  2. Firm identity.
    1. History.
    2. Organisation.
    3. Market statistics.
    4. Objectives.
    5. SWOT analysis.
    6. SWOT matrix.
  3. Expanding in the United States of America?
    1. Characteristics of the country (P.E.S.T. Analysis).
    2. Characteristics of the market.
    3. Possible adaptation to the market.
    4. Foreign Market Servicing strategy in the US.
  4. Conclusion.
  5. Appendix.
  6. Bibliography.

A MNE (Multi National Enterprise) is a company that has an integrated global philosophy concerning both domestic and overseas operations. It means that these companies have to adapt their strategy and structure according to their different actions, knowing that today's marketplace is very dynamic and changing very rapidly. MNEs just have to find the appropriate strategy and structure the best matched to their needs. Global expansion can be profitable for most of these firms, but there are a lot of diverse strategies they can adopt to compete globally, and a lot of new market they can try to enter. Worldwide expansion can consist in a simple transfer of the skills and products from their core market to other ones where the local competitors lack those competencies. MNEs just have to find the appropriate strategy and structure the best matched to their needs. Global expansion can be profitable for most of these firms, but there are a lot of diverse strategies they can adopt to compete globally, and a lot of new market they can try to enter.

[...] The United States of America has a very urban population provided that it is made of 50 metropolitan areas of more than one million inhabitants. Americans are concentrated in big cities, such as New York City, Los Angeles, Chicago, Houston or Philadelphia (the 5 biggest ones, counting respectively and 1,5 million inhabitants only within the city, and and 5,8 million with the metropolitan area). People are rather gathered on the coast. The East coast including New York City, Philadelphia, Boston, Pittsburgh, Baltimore, etc. [...]


[...] To exploit competitive advantage in Europe, Peugeot started by a "Brownfield site" strategy: it took over the European division of Chrysler as the American firm had some problems, in 1978. This takeover required a lot of investment during the first half of the 80s. Then, in 1984, PSA Peugeot Citroën operated to a joint venture to reach the Chinese market (China requires a joint venture with a local company for any foreign firm to access to its market). It was with the Dongfeng Motor Corporation, giving birth to the Dongfeng Peugeot-Citroën Automobile venture, which was successful, provided it still produces a lot of cars, among all the famous Citroën Xsara and Picasso, but the Peugeot 307 for the Chinese market as well. [...]


[...] The United States is the epitome of sheer liberalism: governments take minor role in the economy. As a result, it has a per capita income among the highest in the world and has a very prosperous economy, notably thanks to its national resources, in metals for instance, which is very useful for the car industry. Some countries have prohibitive tariffs to lead automakers to produce locally, but the US has a relatively low tariff of for imported cars. Nevertheless this tariff reaches 25% for the imported pick-up trucks, hurting considerably the competitiveness of those imported cars. [...]

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