PSA Peugeot Citroen - Strategic Alliances for Competitive Advantage

            
 
Strategic Management|Management Strategy |Business Strategy Case Study|Business Strategy|Case Study|Case Studies

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR211
Case Length : 22 Pages
Pages Period : 1966-2006
Organization : PSA Peugeot CitroŽn
Pub Date : 2006
Teaching Note : Available
Countries : France, Western Europe
Industry : Automobile

To download PSA Peugeot Citroen - Strategic Alliances for Competitive Advantage case study (Case Code: BSTR211) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies

OR


Buy With PayPal

Amount to be paid:



Prefer to pay in another currency ?
Select Currency for Payment



Exchange Rates: Click Here
Delivery Details: Click Here

Price:

For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extra

Ľ Business Strategy Case Studies
Ľ Case Studies Collection
Ľ Business Strategy Short Case Studies
Ľ View Detailed Pricing Info
Ľ How To Order This Case
Ľ Business Case Studies
Ľ Case Studies by Area
Ľ Case Studies by Industry
Ľ Case Studies by Company

Custom Search


Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

EXCERPTS

Forging Alliances

PSA could be considered the pioneer of strategic alliances in the automobile industry. Its first alliance with Renault started way back in 1966. Over the years, the company has gained considerably from its strategic alliances with several automobile and auto component companies. Subsequently, other automobile companies have taken the cue from PSA, and entered into alliances and partnerships of their own, with their competitors.

PSA and Renault SA

PSA and Renault had a series of agreements that involved several industrial and technological projects.

Peugeot and Renault first collaborated in 1966, when the two companies entered into a cooperation agreement for the joint production of mechanical subassemblies.

In 1969, the two companies further strengthened their partnership by establishing a joint venture - La FranÁaise de Mťcanique (LFM) - to produce long-series components and engines which were to be used in Peugeot and Renault cars...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

The Rationale Behind the Alliances

In the 1990s and 2000s, intense competition in the auto industry led to a wave of consolidation. Several auto companies bought stakes in their competitors. For example, DaimlerChrysler bought a 37% stake in Mitsubishi, Ford bought a 33% stake in Mazda, GM held a 20% stake in Fiat Auto, and Renault acquired a 44% stake in Nissan.

PSA did not make any effort to buy or acquire stakes in other auto companies. "We can definitely get by on our own," Folz said. PSA, however, concentrated on entering into strategic alliances to counter the challenges posed by its competitors.

A major advantage of such strategic alliances over a merger or acquisition was that PSA did not have to look for massive debt financing and years of inefficiencies due to duplications in manufacturing. PSA entered joint ventures mostly with strong players - Ford, Renault, Toyota, and BMW. And the purpose of these alliances was to share costs and investments and create synergies...

Excerpts Contd... >>


 

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.