Valeo: Innovating to Lead the Mobility Revolution
(10 pages of text)
In 2019, the chairman and chief executive officer of Valeo, an automotive supplier and partner to automakers worldwide, faced the challenges of maintaining the company’s speed of growth and balancing its growth with profitability. Valeo had started as a small automobile component manufacturer in 1923 in France. By 2019, however, it was partnering with automakers to design innovative solutions for smart mobility with a focus on intuitive driving and reducing carbon dioxide emissions. Valeo had grown not only organically, but also through partnerships and acquisitions, which enabled it to develop new technologies and new markets. What should the chairman and chief executive officer do to achieve the twin challenges of maintaining the company’s speed of growth and balancing growth with profitability, while not losing sight of the three current automotive revolutions—vehicle electrification, vehicle autonomy, and digital mobility?
This case is suitable for a graduate-level course on strategic management or in a module on corporate strategy or transnational strategy. Students should be familiar with the fundamental concepts and theories of strategic management. After working through the case and assignment questions, students will be able to
- understand the growth of firms;
- discuss the role of inorganic and hybrid strategies in providing technological and market leadership;
- develop a core competence; and
- build and sustain a corporate advantage.
France, Large, 2020
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