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PEUGEOT SA GROUP
Strategic Analysi |
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The factors accounting for the recovery of the group in the late 1980s are identified. Additionally, the strengths and weaknesses of Peugeot in relation to competitors Volkswagen and Fiat in Europe, and the Japanese automobile manufacturers are identified. Among the factors accounting for the recovery of the group in the late 1980s, the financial and management skills of the Group's new chair, Jacques Calvet, were given top billing by many experts on the European automobile manufacturing industry. Other factor of significance in the Group's recovery were (1) substantial improvements in productivity, (2) high levels of investment in product development, and high levels of investment in manufacturing rationalization. The strengths of Peugeot SA in relation to the company's competitors in the 1990s included the continuation of high levels of investment in both product development and manufacturing rationalization. This investment assured that, in the early 1990s, both consumer interest in the Group's products and the productivity of the Group's manufacturing operations would continue to improve. Another strength of the Group in relation to the company's competitors was the ratio of net profits to turnover. Profits at Peugeot continued to improve as the European automobile market softened, because the Group did not follow the industry lead and lower unit prices. One of the weaknesses of Peugeot SA in relation to the c
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ls in the four segments of the European automobile market.
Internationally, Europe remained in 1990 as the primary target of Peugeot's strategy. Germany was the Group's principal target outside of France. The Group operated manufacturing facilities in several Western European countries. Although Peugeot sought the erection of trade barrier against the Japanese in the European market, the Group, nevertheless, targeted Japan as a part of the company's international strategy.
Peugeot's strategy also called for continuing improvements in fuel economy. The Group contended that the best way to reduce pollution from automobile emissions was to reduce the amount of fuel consumed by automobiles.
Peugeot's strategy was generally sound considering where the company's market strengths lay. An incongruity in the strategy was the attempt to persuade the European Commission to erect barriers in Europe against Japanese automobile manufacturers while the Group simultaneously attempted to expand its own position in the Japanese automobile market.
Calvet's Protectionist Policy
Jacques Calvet's protectionist policy against the Japanese automobile manufacturers was based on some sound arguments. Whether those arguments could be translated i
Category: Business - P
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European Commission, Jacques Calvet's, Peugeot SA, Honda Rover, Economic Community, Alliance Honda's, Japanese European, Japan Japanese, Jacques Calvet, Europe Japanese, automobile manufacturers, japanese automobile, japanese automobile manufacturers, european automobile, peugeot's strategy, protectionist policy, economic community, european economic, european economic community, product development, strategy 1990, automobile manufacturing, protectionist policy japanese, relation company's competitors, european automobile market,
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