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PSA Peugeot Citroën: Re-Entering the United States
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Reference: IVEY-9B17M160-E
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Year: 1991-2017
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Number of pages: 15
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Geographic Setting: United States
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Publication Date: Oct 31, 2017
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Fecha de edición: Oct 31, 2017
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Source: Ivey Business School (Canada)
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Type of Document: Case
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Industry Setting: Manufacturing;
Description
In 2017, PSA Peugeot Citroën (PSA), the French-based automaker known for its famous Peugeot and Citroën brands, announced its plans to re-enter the U.S. market after having exited North America in 1991. This was not the first time the company tried to re-enter the U.S. market. In an effort to reduce its reliance on declining European markets, PSA had attempted to re-enter the United States in 2003, again in 2014 with its premium automobile range, and most recently in 2016 in a partnership with a French-based ride-sharing operator. What are PSA’s strategic options for its international growth by focusing particularly on U.S. re-entry? Would re-entering the U.S. market help PSA respond to growing competitive pressures in the global automotive industry?
Learning Objective
The case is ideal for undergraduate, post-graduate, and executive levels in courses on international business, strategic management, general business environment, and international business strategy. It can also be used in more specialized courses on strategic advantage, strategy and practice, and mergers and acquisitions. The case gives students an opportunity to: ·understand the challenges global automakers such as PSA face in continuing and managing international growth; ·analyze foreign market re-entry as a key strategic option for attaining international growth; ·identify and discuss the trade-offs between entering/re-entering risky host markets and remaining dependent on the home market/region; ·question the irreversibility of market exit and critically discuss the difficulties of re-entering previously exited markets; ·discuss the advantages and disadvantages of PSA’s intended re-entry strategy into the United States; ·identify and discuss the challenges of implementing new organizational strategies to fit new market needs after re-entry; and ·discuss how the lessons learned from this case apply to other large organizations that are traditionally dependent on a small number of country markets.