1. Internal Peugeot Group
* Quantitative performance:
* Over 3 million cars sold worldwide in 2009.
* Over 1 million cars sold outside Europe in 2009.
* World market share of 5%, Europe 13,8%.
* Sales increased 52% from 2008 to 2009 in China.
* Committed to increase market share in China to 8% in 2015-16. * Double digit growth expected for sales in China this year, objective to sell 320,000 cars, the double of 2008 figure. * Qualitative performance:
* Second largest car maker in Europe.
* Strategy well defined for the next years, emphasis in emerging countries: China, Russia and Latin America countries. * Agreement signed to build new joint venture in China – Chang’an * Strong strategy and investment in R&D.
* Long experience in China, since 1985.
* Well established with 2 facilities in China, a third one is being considered. Also a R&D and style center in China. * Resources:
* Company supported by financing houses - Banque PSA Finance. * Strong structure – 15 engineering plants and foundries, 4 research centers. * Brand Image:
* More than 100 years of tradition.
* More than 160 models in the history.
* Present in over 150 countries.
* Good positions in the European Car of the Year award. * Wide range of products.
* Valued company values: Confidence, passion and inspiration.
* Quantitative performance:
* Vulnerable against crisis, losses of 343 Million euro in 2008. * Europe car market expected decrease 7% in 2010.
* Market share in China of 4%, while VW has 17% and GM 10%. * Qualitative performance:
* High price comparing with competitors
* Peugeot had already to leave from China once.
* Peugeot was unsuccessful in India.
* Brand Image:
* Bad image in India due the way it had to leave from the country. 2.1 External - China
* Economic factors:
* 2nd biggest economy of the world.
* Estimated to be the biggest economy of the world in early 2030. * Average growth rates of circa 10% for the past 30 years. * Largest exporter and second largest importer country. * Low poverty rate of 15% in 2005 compared with 85% in 1981. * Demographic factors:
* Biggest population of the world with circa 1,3 billion people. * Largest potential market.
* Largest labour force, estimated in 791 Million people. * Low labour cost.
* Institutional factors:
* Economic activities supported by the government.
* Government present – Economic Stimulus Plan.
* Strong government pressures for workers to stay in line. * Ecological factors:
* Abundance of resources: coal, honey, ore, petroleum, natural gas, mercury, tin, tungsten, antimony, manganese, lead, zinc, molybdenum, magnetite, aluminum, uranium and hydropower. * Technological factors:
* High priority for transportation infrastructure.
* High regard for science and technological modernization. * Cooperative relationship with developed countries.
* Social-cultural factors:
* Strong family network
* Market size and structure:
* Biggest car market and car maker of the world.
* Strong demand even during the crisis.
* Fastest-annual-growing car market, circa 22% from 1998 to 2006 * Enormous potential for growth: 6 car owner per 100 people, while in U.S. it is 90. * Small cars represents circa two thirds of the sales. * Forecast of being twice the size of U.S. car market by 2020 – GM. * Competitors:
* Customers Behavior:
* Foreign brands more valued by customers.
* Infrastructure favorable....