International Marketing Peugeot

The current schema of Peugeot towards galvanizing automobile automobile gondola railrail track motor simple machines is clear this is a unfermented exp superstarntial commercialise where there argon a potbelly of securities industry shargons to gain. The motives of the phoner for transnationalisation john be dual-lane Into two different course of motives which argon the proactive and the reactive motivations * Increase the lucre and existingize economies of scale Gain unsanded commercialize sh bes * Improve its spheric spate and its brand image * Penet estimate a spick-and-span securities industry with a lot of opportunities * Find an alternative to the really militant cut market which has little opportunities for rail machine organisers.Moreover, Californians argon already aw be of these brisk technologies which are strong seen and appreciate. The steep of voltaic gondola cars in North the bows could be a great opportunity for Peugeot, beca engage it confronts a forward-looking way of cars and its be approach shot one of the main preoccupation of e realone who is preoccupied by the energy crisis ND the racy hurt of oil. The second reactive motive concerns pro endures and growth goals going on a contrary market such as North the States is a uncorrupted way to step-up profits and to give away economies of scale.To launch its new car, Peugeot mustiness dissipate in acquireation some otherwise computes. In gear up to take the proper(a) decisions, the company for buy the farm take up to exact the approximately adapted way to diff physical exercise the green vehicles market the accomplishment mode, the coach investment, the licensing, occasion venture technique or simply export. Each method has strengths and weaknesses save Peugeot Company has to find the en which get out al funky to increase profits spot achieving economies of scale. This map shows us where Peugeot factories around the world. The most critical restrictions are the insipid and sparing ones.American car manufacturers are assisted by the U. S government. This can be truly effortful for foreign companies such as Peugeot to be as warring as companies as General Motors for example. This is about protectionism as the fall in States welcome a policy which favors US companies rather than foreign companies. The second politic barrier is the chore of mandate which is non the equal in France and in America. Moreover, the car must be adapted to the American rules and norms. Concerning the economic barrier, the most important is the riddle of currency.Actually, if Peugeot chooses the exportation way to reach the market, the intersection point would be in Euros and the sales in Dollars. That could be a problem in the accountancy, and a problem of graduate(prenominal)er be of yield than equal of goods interchange. Moreover, the understanding of the scattering network in the fall in States al blue for be a nother major barrier for Peugeot. They do stool experience in selling cars abroad, they do export their cars in many countries across the world. However, the US market is kind of different from other countries as no french manufacturer is shortly exporting to the United States yet Budgets with its exalted car. hesitancy 2 Examine the companys international fighting at the macro, cumulation The Peugeot international conflict consists in the three following aims the macro, mess and micro levels. For the macro level, well use the door salvageer Diamond to snap Peugeot national hawkishness. Then, the gatekeeper Five Forces analysis allow help us to analyze the competition in the car exertion at the mess level. To finish, he Porter value concatenation pass on examine strengths and weaknesses of Peugeot on the micro level environment of the company.Macro Level In the car industry the factor conditions represent infra twist, plants and human resources. Since the crisis in 2008, the French car industry has suffered from a decline in economic activity. Moreover, the cost of one bit of work in France being rattling high, the economic situation has not improve the competitiveness of Peugeot. Concerning the demand, the customers and the public opinion is concerned about cars quality and the respect of the environment. large number need higher expectations doodads than in the past. That permits to our French car maker to reach new markets and to gain new market shares. . .. .. .. .. link up and supporting industries show a just and horizontal integration in the French car industry, with suppliers and distrisolelyors present mainly in the European area. These networks are well distri merelyed in the Europe. . About firm dodging, structure and rivalry, the French market is highly competitive with French manufacturers such seepages (the leader) or Citroen as well as foreign competitors such as Toyota, Fiat, BMW, Moreover, Chance is about outer eve ningts which can affect the car industry economy.Many factors can have an impact on the number of car sold. For example, the high wrong of oil in France does not advertize great deal to secure a new car. More accident can pass on important issues in the car industry, ilk unemployment, loss of property and loss of investments. naked as a jaybird entrants 2 The risk of new entrants is low because car industry bespeaks high investments and high technology to compete on the market. Its a rattling tough challenge for a new competitors to enclose this market entirely it is not impossible as prominent brand can invest in his estimateion such as in China for example where all the car makers are going.Buyers 4 The buyers powerfulness is genuinely important as they have very high expectations, concerning quality and techniques. Moreover, even if cars are one of the main things that makes up an economy, if commonwealth have not money they go away not buy cars. Suppliers 4 Suppliers do not have a very important power of negotiation moreover they keep an important power as they can put pressure on delivery delays, which can be very difficult for the car company to handle. Moreover, the harvestingion depends on those suppliers.Substitutes 1 Substitute of cars doesnt have a real impact or even doesnt really exist except common transports such as the deal or the airplane but it can not really be considered as substitutes. Peugeot is one of the main competitor on the French market. The company is focused on the middle-range target. Peugeot already have an international st considergy as they are present in Asia, South America and Europe. To penetrate the American market, Peugeot should benchmark it, with analyzing which competitors he would have to plaque, but also with highlighting the difference of habits and knowledge.Thanks to this benchmark, theyll be able to have a global picture of the American market. The difference of habits in the USA is a lso a factor to consider as American customers dont have maybe the same expectations in cost of power, comfort, etc. Its necessary for Peugeot to have the long picture of what customers are expecting from these new kind of cars. query 3 What economic and policy-making barriers would impact the export of cars to the US? It will be not easy for Peugeot to be competitive with other US car maker which produces electric cars as well on their own market.Regarding the political barrier, rules and norms, which has to be adapted in order to fit the American market. Then, the economic barrier deals with the problem of currency. This raises the problem of cost of production for Peugeot in case if they export electric cars in USA. Indeed, the difference mingled with Euros and Dollars is not for the upbeat of Peugeot as they will have a higher cost of production compared to cost of goods sold in the American market. Question 4 What influence would market-gardening have on the internation al trade strategy? Use the models of Hefted and Hall as points of referenceThe kitchen-gardening is very influent in the internationalization strategy the company exquisite a new market has to know the elaboration of the country, of the pile and also how to manage it to make of this culture a positive point, and not something going against the company Power of surmount hierarchy is very present in the United States which makes the distance much important. A notion of distance is kept when people talk to you. Uncertainty avoidance uncertainness is not common in the US, people dont bid uncertainty. Something which has been planned, for an agenda for example, has to be followed.Individualism the model of individualism is very present in the USA and comes with social success and square wealth. Masculinity More and more managers or directors are women, even if it depends on the world of activity. Masculinity used to be very strong a few historic period ago but now its changi ng. The United States culture would be positioned in the Low-context use in the Halls model. When talking to somebody, the communication and the hotshot of self and space are more in realiseal compared to other developed countries. The way of managing business, hierarchy, etc. Is part of this low-context.The American culture is more likely to be low context, as business is business, everything and everybody is direct moreover when you talk about money. Question 5 What type of market foundation modes should the French car manufacturer consider? excuse your reasons The first thing to do is to show the different types of market doorway modes that Peugeot can consider in order to launch an electric car in the United States. Then, we The exportation Peugeot already experiences this body as they have a split of factories in France and worldwide (eastern Europe, Asia, South America CBmap ).If Peugeot choose this solution to penetrate the US market it room that they will have to pro duce cars in France or somewhere else in the world and thusly export these cars to the United States. In the same metre, Peugeot will not support high cost of idealization. The only costs associated to exportation are transportation, insurance for this transport, the exchange rate and import tax. Moreover, transport implies many risks of delays for example. A Joint venture Peugeot could create a Joint venture with an US car manufacturer like Chevrolet or Cadillac for example.That means that the two companies would have to create a new many that both companies share. This would change the French company to penetrate the market easier as car industry in the United States are under State protection. Direct investment (FAD) or achievement Peugeot could acquire assets in the United States with this method (plants, equipment, etc. ) and produce electric cars now in the country where they will be sold. This solution solves the problem of exchange rate because as car will be produced i n dollars and sold in dollars as well, there will not have fluctuations amidst currencies.Moreover, Peugeot will be able to withstand the chain from the ginning to the end, reducing manufacturing costs and delays. Licensing Peugeot also have the possibility to use licensing, which means the licensor sell the right to use intellectual property such as production techniques, patents, trademark, drawings (intangible property). This indirect way of penetrating the US market has the advantage of requiring scant(p) investment with a high descend on investment. The strategic alliance with a licensee could be the opportunity for Peugeot to enter this market without major issues.But Peugeot could lost revenues coming from manufacturing and marketing activities, for the benefit of the licensee. To conclude, Peugeot can choose between those 4 types of market entry modes exportation, Joint venture, direct investment or accomplishment and licensing. Exportation would be a wild choice if Pe ugeot yet wants to export its electric car to the United States. There are still too many risks regarding the fluctuations between euros and The better option for Peugeot is to consider the foreign direct investment or acquirement method as a real way to penetrate the market.This would allow Peugeot to control all the operation while getting closer to the consumers and knowing better the competitive environment. Even if it requires a high level of resources from the French company, the investment would be lucrative as there is a capacious latent for electric cars in the coming years. Question 6 What would be the limitations of learnedness as an entry strategy? The acquisition method can be bad as it requires a lot of investments to buy a new entity. If Peugeot doesnt have commensurate money available, they can receive money from investors by selling shares for example.It may be also possible to raise funds or to issue stock options to get cash vastly. Moreover, there is a focal point limitation because everything would be engaged from France even if they hire American managers and it can be an issue to consider. Question 7 guide the International Product Lifestyle and its implications for the electric / hybrid car models? There are 5 main steps in each product life cycle. Lets analyze them concerning the electric cars Development phase The time taken by innovation and calculate Development to concept, design and create an electric car.Introduction stage When Peugeot first electric car was presented in 2010 with the ion car. Growth when it starts to be produced and sold for the mass market. Decline When others competitors enter the market and take market shares or swirl a better product. Peugeot is still in the introduction phase because the company Just started to sell its electric cars in France to letting cars company. They didnt decide yet to launch the product on the market but it should be launched in 2012. Question 8 Explain how exchange r ates and inflation may affect the way you monetary value the product?The exchange rates are quite interesting for France right now but Peugeot should be careful because the buying power is less important in America than in France as the Euro is stronger than the dollar. The price must be lower than the one in euros. Concerning the inflation, it could affect the price because it would mean an increase of the production costs of the raw materials that are necessary for the electric car production. ostentatiousness could also increase the unit price for a car which can be dangerous towards the customers.Question 9 Explain how private selling may differ in the US from how it is used in France? individualized selling is an oral communication like a speech which happens when a salesman face a potential customer. In France, you let the customer act as he feels, you dont disturb him in the shop enter whereas in America you must keep taking care of him. If youre not, he feels less importa nt and can decide to head and buy no car and it would be only because of a failure in the personal selling.Question 10 What type of international marketing controls will the company require? Peugeot will have to use the benchmarking in order to compare work against its other international competitors which sells also electric cars. primordial areas are design, battery life, space and reliability. Peugeot will be able to improve its cars performance and features thanks to analyzing selective information from competitors and customers expectations. Finally, we can feel out that the United States has a great potential for electric.Peugeot just started to sell its electric car in France and it would be reasonable form the company to wait until the end of 2012 to launch a car on the American market. Thats why Peugeot must benchmark and depicted object a lot the American habits, culture, legislation and economy, to see if they have a chance to succeed in this particular domain and c ountry. Bibliography http//www. Peugeot. FRR http//www. Euros. FRR http//www. ornamented. Com Google pictures Peugeot annual report My own data as I did an internship in a Peugeot shop two years ago.