Report on Competitive Strategies in the Car and Airline Industries

This report provides an in-depth analysis of competitive strategies employed by companies in the car and airline industries. It examines the strategies of Chevrolet and Peugeot in the car industry, highlighting their approaches to global market entry, brand development, and innovation. The report also explores the competitive strategies of British Airways and Emirates in the airline industry, focusing on their target market segmentation, modes of entry, and global marketing approaches. The success of Chevrolet and Peugeot is attributed to continuous brand improvement and adaptation to technological advancements, while British Airways and Emirates have succeeded through effective market segmentation and strategic market entry. The report concludes by emphasizing the importance of robust competitive strategies for success in both industries.

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COMPETITIVE STRATEGIES: CAR AND AIRLINE INDUSTRIES
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Executive Summary
Both small and multinational corporations operate in a competitive environment.
The success of these businesses is largely tied to their completive strategies. This
report will discuss the competitive strategies attributable to Chevrolet Motor Car
Company and Peugeot Company which are the two companies in the car industry. The
report also explores both target market and modes of entry associable with British
Airways and Emirates, the two companies in the airline industry. The report finds the
success of both Chevrolet and Peugeot companies is as a result of their continuous
development and improvement of the existing brands. This has been achieved through
innovation and taking advantage of the current technology. For the companies in the
airline industry, the report has found that the two companies competitive strategies are
tied to the proper segmentation of the target market as well application of the
appropriate market entry strategies.

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Introduction
The firm's competitive advantage and its profitability are the key determinants of
the company success in a given industry. For the company to possess the two aspects,
it must come up with the robust competitive strategies that will overcome the existing
competition as well as the threat of the new entrants in the industry. This report explores
the competitive strategies exhibited by Chevrolet and Peugeot the two companies in the
car industry. The report also investigates the competitive strategies attributable to
British Airways and Emirates Airlines which are some of the major companies in the
Airline industry.
Car Industry
In the recent the past, the competition in the car industry has been the intense
one. However, there some companies in this industry such as Chevrolet and Peugeot
that have been able to overcome the existing fierce competition through global strategy
as a business model change to claim their competitive advantage both in the industry as
well in the market. In the following discussion, this report discusses each company in
detail.
Chevrolet Motor Car Company
Chevrolet is an American Automobile division of the General Motors Company.
The Chevrolet Motor Car Company being an affiliate of the General Motors many its
global entry strategies revolves around the parent company. General Motors applies the
global strategy of a brand for every place. Whether in Europe, Asia or the United States,
the buyer will find the Chevrolet cars in the market. This means this product is almost
everywhere across the globe. The provision of the company products in a wide
geographical region helps the company to claim largest market share even before the
competitors can reach the market (Pfanner, 2012). This was the strategy that was used
by the General Motors to market Chevrolet Cars in the global markets.
Originally, the Chevrolet cars were meant for the entry-level car buyers (Pfanner,
2012). Therefore, the company had to avail the product to many target markets. This
was one approach to introduce new product in the market. However, with the passage

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of time the company has focused on making the product affordable for the middle-
market consumers. Again, to suit the growing demands of the customers the company
has opted for investing more than five billion dollars to strengthen its position in the
global market.
In 2015 the company improved the Chevrolet brand to meet the rapidly growing
customer needs in the global markets. They came up with an innovation of developing a
new family car that still maintained the original name of the brand. According to the
industry analysts, this was one of the most successful global strategy business model
change that has maintained the competitiveness of the Chevrolet brand. The General
Motors President, Dan Ammann in 2015 noted that with the anticipated growth of the
automotive industry growth in the mature markets, the company should be a focus on
capitalizing on the new emerging markets (Roman, 2015). That could only be achieved
by modifying the company products to suit the growing needs of the markets.
The improvement of the Chevrolet was aimed a new and modern family car to
replace the existing ones. By adopting this strategy Chevrolet substantially improved its
profitability and competitiveness by providing what customers wanted in each market.
General Motors applied the concept of satisfying the customer needs based on their
economic status to take maximum advantage of the global scale.
Peugeot Motor Car Company
Peugeot Company is a French company that has been dominating car industry
over decades. Its objective encompasses on delivering the best-in-class driving
experience that is characterized by the powerful driving sensations and heightened
customer emotions. The success of the Peugeot Motor Car Company can be ascribed
the continuous improvement that has been subjected to the brand since its invention.
The Peugeot brand has been improved and maintained in line with the current
technology in the market. Secondly, the company products are almost on over 180
countries and more than 10,000 points where customers can access the company
products.

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The stiff competition experienced within the industry forced the company to seek
a strategy of entering the global market. As a result, the company changed its strategy
by introducing the improved Peugeot brand. In 2012, the company came up with the
Peugeot i-Cockpit that has attracted more than 2.2 million customers across the world
since it was launched. This was the key feature that enabled Peugeot to continue
maintaining its competitiveness as well success in the international market.
The competition continued to loom in the industry, and by 2015 the company
implemented an innovative concept of Peugeot Fractal to improve the existing Peugeot
i-Cockpit that was designed in 2012. This brand was aimed at improving and enhancing
the company target customers both in the domestic and in the international markets.
Out of continued innovations and with 180 countries and over 10,000 dealers the
company profits increased by 4.6 percent during the period year that ended in 2015.
The profit realized during the years was subjective to the 1,710, 000 vehicles worldwide.
Apart from the innovativeness as the strategy of entering into the global markets,
Peugeot has focused on alliances with the aim of minimizing the global operational
costs. In 2012, Peugeot and General Motors allied with the expectations that they will
save approximately 2 billion dollars annually within a timeframe of five years (Reed,
2012). Being the most competitive companies in the industry, the two companies
agreed to share vehicle modules, components, and platforms and establish a global
purchasing joint venture of buying parts and commodities to increase their purchasing
power.
The strategic alliance was meant to improve the competitiveness of each of the
two companies on the global scale by ripping maximum benefits from the global market.
Besides, the two companies have been able to realize profit increase especially in
Europe and around the world as well.
From the above discussion and analysis, it is indisputable that the Peugeot
Company global entry strategy was maintained through innovativeness business model
change. Besides, the company has embraced the aspect of cooperation and strategic
alliance with its competitors to get maximum benefit from the global markets.

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Airline Industry
The weakening of barriers to enter the airline industry has increased competition
in the industry. This has been accompanied by high buyers’ power intensifying the
competition further. Likewise, it has become difficult for the competitive international
airline companies to reach target markets with ease. However, companies such British
Airways and the United Emirates have been for long time operating in the global market
effectively. The success of the two companies can be linked to their target markets as
well as their modes of entry. This report discusses the competitive strategies of each
company in the following paragraphs.
British Airways
British Airways target market is classified into economy class, premium economy,
executive club and first class. The economy class comprises of the domestic flights
within the United Kingdom as well as the whole of Europe, urban and rural migration
and international flights. Premium economy includes selected international flights and
targets low and middle-class customers. The executive class encompasses of
international flights specifically focusing on business people and professionals. First
class is based on selected international flights and as executive class targets business
people and professionals.
Ideally, market targeting strategy involves planned selection of the right market
segment (Meyers, 2013, p. 28). The company should be able to satisfy the needs and
preferences of the target market appropriately. The diversity and the preferences of the
buyers in the target market determine the competitiveness of the company. British
Airways has targeted on the diverse and differentiated target market based on the
customers’ characteristics. For example, the company has segmented its target market
based on the price. The different products offered by the company both in the domestic
and international are in accordance to the affordability by their customers. This
approach helps the company to serve all the markets.
In the above discussion, the report has elaborated the specific target markets
that British Airways focuses its operations. It has come out clear that the company aims

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at serving both the domestic and the international market. The competitive advantage of
the company in the home and regional markets appear to be robust. However, the
company competitive advantage in the international market seems to be fluctuating
because of the fierce competition offered by other international flights. Therefore, it is
important to review the company’s global entry strategy to ascertain how the company
has been able to penetrate as well as maintain its competitiveness in the global market.
British Airways applies four modes of entry to enter both domestic and global markets;
 Market Penetration: British Airways penetrates in the new markets as well the
existing ones through increasing its competitiveness. Usually, this involves
increasing the provision of the current product, using promotion approaches and
applying competitive pricing strategies to force other players in the market.
 Product Development: The British Airways applies this entry mode by
introducing a new product to already existing market. This may comprise of
coming up with the new services on the target market.
 Market Development: This strategy involves applying existing modes of entry in
the new markets (Lynn, 2014, p. 66). British Airways enter the new market
through utilizing the variety of the distribution channels that include using
different pricing strategies according to the character traits of the market.
 Diversification Strategy: This approach involves introducing a new product in
the new market segment. This means the company will be able to serve the
market that was no longer exists. British Airways offers a variety of services both
in the local and in the international market with the goal of serving many
customers as possible.
United Emirates Airline
The Emirates Group is one of the most profitable and competitive international
companies in the airline industry. Its success can be tied to the competitive strategies
that the company has maintained both in the domestic market as well in the global
markets. Apart from Asia, The United Emirates has been focusing on Europe and
America. The huge number of countries in these continents, as well as their population,
has given the company a strong position in the global market.

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Just like any other airline company, the Emirates Airline Target market can be
classified into the average customers, middle-class customers, and high-class
customers. The company applies this approach in segmenting its target market to serve
the largest number of customers possible. The three segmentation approaches of the
target are applied in all the markets where the company is selling its services. The
major company markets comprise of the Middle East, Africa, Asia Pacific and western
countries.
The Emirates Group has appealed to the international customers by coming up
with the global marketing strategy that portrays customers as the globalists. The "Hello
Tomorrow" term is widely used to woo global customers to purchase the company
products. This slogan aims at positioning the airline as the facilitator of the global
connectivity. As the company strives to reach more target markets, it has resulted on
applying market entry strategies as applied by British Airways. The company applies
these entry modes to reach both domestic and international markets.
 Market Penetration Strategy: Emirates Airline uses this strategy to maintain
and improve its market share in the industry. This approach helps the
company to increase the consumption of the existing customers as well as
control the competitiveness of other players.
 Market Development Strategy: Emirates Group uses this strategy by
expanding its services to more international destinations. This strategy has
helped the company to continue increasing its share of the global market.
 Product Development Strategy: The Emirates group has developed a
private suite and has continued to introduce more and new quality first class
services to attract business segment customers in the target market.
 Low-Cost Carriers and Differentiated Strategies: The Company has
diversified its services to target low-class customers both in the regional and
global markets.
Conclusion
The success and the competitiveness of the company depend on its laid down
strategies. The four companies in two different industries discussed in this report have

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been able to outperform their competitors because of their robust strategies. Chevrolet
Motor Car Company success is built on the continuous success and improvement of its
brand. The company has often modified its brands to suit the need of the customers in
different markets. Likewise, Peugeot brand has been enhanced by taking advantage of
the technology. On the other hand, the success of British Airways and the Emirates
Group in the airline industry can be linked to appropriate segmentation of the target
market as well as the application of the right market entry strategies.

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References
Lynn, M., 2014. Segmenting and Targeting Your Market: Strategies and Limitations.
School of Hospitality Administration, 4(2), pp. 65-92.
Meyers, Y. J., 2013. Target marketing and the product: categorizing products to
understand the resulting marketing communication outcome measures. Journal of
Management and Marketing Research , 2(2), pp. 22-38.
Pfanner, E., 2012. G.M.’s Global Strategy: A Brand for Every Place. [Online]
Available at: http://www.nytimes.com/2008/02/04/business/worldbusiness/04gm.html?
mcubz=3
[Accessed 11 September 2017].
Reed, J., 2012. GM and Peugeot confirm alliance. [Online]
Available at: https://www.ft.com/content/ac3aa4ca-62f0-11e1-9245-00144feabdc0
[Accessed 11 Septmber 2017].
Roman, D., 2015. Chevrolet Strengthens Position in Growth Markets with $5 Billion
Investment. [Online]
Available at: http://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/
news/us/en/2015/jul/0728-chevrolet.html
[Accessed 11 September 2017].

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