Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 14.02.2022
Revision date: 28-Mar-2022
Length: 19 pages
Data source: Field research
Abstract
In 2016, French car manufacturer Peugeot announced it will to return to the US, one of the most competitive markets in the world. Peugeot had previously attempted to conquer the US, but that effort failed: In 1991, after having sold a grand total of 4,261 cars in the whole country the year before, Peugeot left the US and remained away for 25 years. Now eager to stage a successful comeback in a market that only got even more fiercely competitive and in the midst of rapid changes affecting the industry, Peugeot needed to first figure out how to overcome its key competitive weakness, namely its lack of a distribution network. For Peugeot's CEO, one question dominated all others: How should Peugeot fulfill its distribution needs in the US (defined as selling cars and providing maintenance), given that it did not have a distribution network?
Time period
The events covered by this case took place in 2014-2020.Geographical setting
Country:
United States
Featured company
Groupe PSA
Employees:
10000+
Turnover:
USD 74.3 billion
Industry:
Automotive
About
Abstract
In 2016, French car manufacturer Peugeot announced it will to return to the US, one of the most competitive markets in the world. Peugeot had previously attempted to conquer the US, but that effort failed: In 1991, after having sold a grand total of 4,261 cars in the whole country the year before, Peugeot left the US and remained away for 25 years. Now eager to stage a successful comeback in a market that only got even more fiercely competitive and in the midst of rapid changes affecting the industry, Peugeot needed to first figure out how to overcome its key competitive weakness, namely its lack of a distribution network. For Peugeot's CEO, one question dominated all others: How should Peugeot fulfill its distribution needs in the US (defined as selling cars and providing maintenance), given that it did not have a distribution network?
Settings
Time period
The events covered by this case took place in 2014-2020.Geographical setting
Country:
United States
Featured company
Groupe PSA
Employees:
10000+
Turnover:
USD 74.3 billion
Industry:
Automotive

