Hyundai and Kia vs Renault and Peugeot. 1.- Five Forces Diagram
Before explaining the strategy Hyundai may follow according to the influence of the five forces that shape the industry competition, we will start showing the current situation in the European market.
The current scenario in the European market is that Hyundai has increased their sales for the first six months of the year by 10%, wining market to their direct competitors like Renault.
Trough the five forces graph it is revealing the roots of an industry’s profitability while providing a framework for anticipating and influencing competition (and profitability) over time.

Regarding to the threat of entry, the highest threat identified was the possible powerful of …ver más…

Regarding to rivalry among existing competitors, first of all, competitors are numerous or are roughly equal in size and power. Moreover, industry growth is slow. Slow growth precipitates fights for market share. On the other hand, price competition is most liable to occur if, to begin with, products or services of rivals are nearly identical and there are few switching costs for buyers. Besides, fixed costs are high and marginal costs are low. Finally, capacity must be expanded in large increments to be efficient.
2.- Questions about Renault-Peugeot Case
1) Do Renault and Peugeot have a problem? Which one/ones?

Yes because in the current situation of the market, Renault and Peugeot are stuck in the middle and will be crushed by the Germans Volkswagen from above, and by the Koreans producers Hyundai and Kia from below.

From above Volkswagen is pushing reducing costs by using platforms form different models of cars, and approaching quality and costs to a more competitive market, and at the same time Hyundai and Kia are offering much more low cost cars than Peugeot and Renault compensating the low cost cars by offering huge warranties to the cars they sells.

2) Is this an attractive market?
No, because from Peugeot and Renault point of view the current market is very challenging because they have to think where to orient their strategy. French´s carmakers have two choices: either to battle with VW and Koreans model by model, or to withdraw