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Case Study: Stellantis Company

When was Stellantis formed?

Stellantis company name is drawn from ‘Stello,’ which means making better or brightening with stars. ‘Stellantis is a global automotive engineering company founded in 2021 at the center of an equal international union among the Italian-American multinational Fiat Chrysler automobiles and the French PSA group. It is the prominent manufacturer and benefactor of innovative mobility solutions. The primary duty of the Stellantis is to scheme, advance, and make and sell automobiles that are over and above fifteen brands. The corporate headquarters are based in Amsterdam in the Netherlands.

What market segments does it specialize in?

Being a global company, Stellantis has various branches all over the world. One of the market segmentation the company employs is geographical market segmentation. The company specializes in selling its products in multiple regions where it is located or where it has got its branches. Therefore the company majorly specializes in geographical segmentation. The company also employs other forms of market segmentation, such as demographic segmentation, since some of the population will desire different products to serve the needs. Some people will want to employ SUVS automotive or another brand compared to another group. Differentiation is another essential marketing segmentation since different people have other preferences and needs for their personal and public cars (Mayrhofer, 2021). Therefore, the company can stand out in the market over its competitors and identify the qualities that set one product from other similar products. Behavioral market segmentation draws the population’s age, gender, occupation, and cultural and family background to market its products. The psychographic marketing segment is also employed since the company applies psychological selling to its four brands of products.

What are the unique characteristics of these competitive markets segments?

Geographic segmentation, for instance, allows Stellantis Company to be price and cost-effective in doing its business since the company can effectively utilize its geographical positioning to reach various customers, unlike a company that does not employ geographic segmentation. The company is also likely to put more effort into its marketing efforts primarily in the area they are located and, as a result, collect the best statistics for their marketing strategies and the policies they are likely to apply in the future in so doing the company also avoids wastage spending in its business. The other benefit that the company is expected to reap from behavioral segmentation is that it permits companies to locate clients with similar buying manners in the area and enables the corporation, such as Atlantis, to identify the clients’ requirements and unmet needs. The customers are likely to build up customer loyalty to the customer’s products. It also fastens the corporation’s growth and expansion rate since the company is expected to follow the trend which is best suiting the company (Morgan et al., 2019). Stellantis is also likely to reap a lot of benefits from employing demographic segmentation as one of its marketing strategies across the globe since it is likely to acquire information in a fast and quick manner.

The corporation shall enjoy a high return on investments in its automobile manufacture since many clients buy from the world branches across the world. It is also likely to enjoy a centralized marketing policy since the marketing strategies vary across all the components in various countries. All apply to the same company and the same products worldwide to have an added advantage over numerous marketing policies across the globe. The Atlantis company is likely to enjoy improved goods and services since customer complaints are solved worldwide, and therefore, they are solved through enhanced products. Stellantis Company is also expected to reap many benefits from the psychographic selling strategy in various ways. It is likely to improve the utilization of the available resources and employ efficient use. The company is expected to comprehend the clients’ requirements and beat the competitors or stand out over the competitors in the market. The market is also likely to understand the reason behind consumer behavior. Like the other forms of market segmentation, psychographic selling improves customer loyalty in the first place in the market. And the psychographic selling techniques offer are more commanding communication and are also the most accurate and efficient segmentation in general.

Stellantis’ new plan and why is it becoming more of a software company? What is the essential competitive strategy employed?

The new plan of Stellantis Corporation is to endow and invest its resources into software and electrification, which will encompass hiring 4,500 software engineers. The company is transforming to software technology following its merger with Fiat Chrysler Automobiles and PSA group because the future must be shaped well. New transformation and advancement show that stellantis is planning its future, growth, and expansion through the merger partnership. The company employs a strategy parallel to its vision, aiming to ensure that more of its vehicles will be low emission vehicles.

Outsourcing is the choice of a company to select a different company to perform its duties based on the technology or expertise nature of the chosen company and mainly to cut the cost of creating such goods and services for the traditional company. A company may outsource for various reasons, such as cutting and saving on training and production costs, hiring new staff, or even sourcing new equipment needed in production. The company may also outsource to delegate responsibilities and duties that are difficult to manage and control (Shulga et al., 2019). The primary task of Foxconn is to upsurge the affordability of electronic products for every person to have access to them. And therefore, the company has ensured the lowest cost of production possible to ensure the products reach the customer at the lowest possible price. Stellantis is likely to outsource the software technology. The company does not require outsourcing much of its software technology due to various challenges expected to face, such as lack of control or regulation, poor communication, and low quality of the products.

Do you think a traditional company like Stellantis can master software development? Why or why not?

Stellantis is a traditional company, but despite the case, Stellantis can master software development since it only requires to merge and acquire separate software technology companies across the globe for the manufacture of its products and then slowly adapt to the new modifications and transform into technology and mobility just like these small companies. The company has to share its futuristic goals with like-minded companies and provide its clients with secure, sustainable, and affordable mobility solutions.

In summary, Stellantis is one of the most futuristic global companies globally and thus employs various marketing segmentation to befit its population, such as behavioral, demographic, and psychographic segmentation. The company has also used differentiation to meet the client’s specific requirements. Also, through its future vision and mission, it has partnered and merged with technologically wise companies to transform its manufacture. The transformation is majorly done by outsourcing, connecting, and partnering to the latest electronic change and technology of fewer emission vehicles.


Mayrhofer, U. (2021). Stellantis: the PSA-Fiat Chrysler merger [Stellantis: la fusion PSA-Fiat Chrysler] (No. halshs-03145118).

Morgan, N. A., Whitler, K. A., Feng, H., & Chari, S. (2019). Research in marketing strategy. Journal of the Academy of Marketing Science47(1), 4-29.

Shulga, E., Lanusse, P., Airimitoaie, T. B., Maurel, S., & Trutet, A. (2021). Model Predictive Control of engine intake manifold pressure with an uncertain model. IFAC-PapersOnLine54(6), 335-340.


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