PSA Peugeot Citroen S.A. Business Strategies
The Peugeot Company has continued to wax strong after more than 120 years of formation because of strategies and ideas its managements have implemented over the many decades in its history.
Today, knowing these strategies, and adopting them to your businessâ€™ situation can help you overcome difficult challenges, and achieve great success in your business. Here they are:
Looking Into The Future
If you do not want your business to be pushed behind or totally made obsolete, you need to constantly observe the changes, and inventions going on in your industry, and understand how such could affect your business in future. This will enable you to take the proper steps to position your business to benefit, and not suffer from the developments.
Armand Peugeot realized that the internal combustion engine, which had been newly invented, could replace the steam engine that was then in use in future automobile, and so made sure he got the new technology, even if he had to travel to German in search of it.
What Is Your Business Known For?
If you cannot answer this question in few seconds, it means it will be difficult to achieve success in that business. Your business has to stand out for something, which registers on peopleâ€™s minds. Whenever anyone desires or needs that thing, your business readily comes to their minds. Decide on what you want to be known for, integrate it into your business, and communicate it to your target customers.
Peugeot vehicles were known for their sturdiness, dependability, and excellent finishing. They were also known for being useful and practical more than being attractive.
Being First In Something Is Important
Being the first in the industry is pivotal to business success. It provides a great opportunity for a business to reach prospective buyers first and win them over before other businesses start coming.
No doubt, there is always a golden place in buyersâ€™ heart for the first business in the market. Therefore, to take advantage of this, you need to be creative and come up with firsts in product design or creation, marketing, and distribution.
By introducing the first diesel-powered passenger automobile in the world in 1921, and the first touring car fitted with a diesel engine in 1933, Peugeot won the hearts of many automobile lovers.
Innovation Keeps Your Business Fresh
Your business needs to continue to remain relevant, and useful to its customers, and attract new prospects. It needs to continually develop products that offer better value and more benefits than they were before. Simply put, you need to make innovation a business policy.
Peugeot has always been an innovative company, and has continually worked to improve on its products. By 1932, it had refined its 201 and 301 model lines, making them more elegant and attractive.
Developing Strategies Against Recession And Competition
Itâ€™s not unlikely that you will face difficult economy and tough competition from other businesses. However, you need to come up with strategies to overcome the challenges and remain thriving in business.
Living through the depression of the early 1980s and 90s, as well as the competition from Japanese companies was by the development and implementation of strategies, which enabled PSA Peugeot CitroÃ«n to thrive rather than sink.
You Need To Have Cost Cutting Strategy
A crucial aspect of your operation that can affect your profitability and competitiveness is your ability to keep your cost of operation down. Higher cost of operation will not only wear off your profit, it could also make your price higher, and therefore affect your competitiveness. This is why you need to have a strategy to keep your cost down.
PSA Peugeot CitroÃ«n implemented certain cost cutting strategies in the 2000s, which resulted in reduction of its operational cost by â‚¬ 600 million a year.
Read PSA Peugeot Citroen S.A. Success Story here.
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