Peugeot

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Company Description

Peugeot is a French automotive manufacturer headquartered in Paris, founded in 1810. The company designs, manufactures and sells cars, commercial vehicles and motorcycles worldwide, with a focus on providing high-quality products and services. Peugeot's product range includes passenger vehicles, light commercial vehicles, vans, buses and for-hire vehicles, as well as parts and accessories for all of its products. Peugeot currently serves customers in Europe, Asia, Africa and Latin America.

Industry Overview

Peugeot is a major player in the automotive industry, which is valued at around $2.3 trillion globally. It employs over 40,000 people across Europe, Asia, Australia, and North America. The company is based in France and its vehicles are sold in over 160 countries worldwide. Peugeot is a major innovator in the automotive industry, investing heavily in the development of new technologies and products.

Industry Classification

In terms of formal classification, Platform Executive has tagged Peugeot as a business operating within the Automotive Manufacturers industry.

Major Products & Services

The main products and/or services commercialised by this business include:

  • Automobiles
  • Commercial Vehicles
  • Motorcycles
  • Scooters
  • Parts and Accessories
  • Financial Services
  • After-Sales Services
  • Mobility Solutions
  • Cycling and Racing
  • Merchandise

Table of Contents

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Competitive Landscape

Peugeot operates in a highly competitive environment where automobile manufacturers are constantly vying for market share and consumer loyalty. The industry is characterised by intense competition, with multiple players offering similar products and services. Rapid technological advancements, changing consumer preferences, and stringent regulations contribute to the dynamic nature of the market. Established brands and new entrants alike are constantly introducing innovative features and designs to attract customers. Price wars, aggressive marketing strategies, and mergers and acquisitions are common tactics used by competitors to gain an edge. Peugeot must continuously monitor and adapt to the competitive landscape to maintain its position in the market.

Key Competitors

We have identified the following organisations as being key competitors:

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Key Stakeholders

Stakeholders are individuals or groups affected by a business's actions. Understanding their needs helps a business make decisions that benefit all parties.

Internal and external stakeholders include the following:

1. Customers: Peugeot’s customers are the people who purchase and drive their vehicles.

2. Suppliers: Peugeot’s suppliers provide them with the materials and components they need to make their vehicles.

3. Investors: Investors provide capital to Peugeot to help finance its operations.

4. Employees: Peugeot’s employees are responsible for designing, manufacturing, and selling the company’s vehicles.

5. Government: Governments set the legal and regulatory frameworks in which Peugeot operates.

6. Local Communities: Peugeot’s operations can have an impact on the local communities in which they are based.

7. Industry Partners: Peugeot partners with other companies within the automotive industry to help it remain competitive.

8. Media: The media plays an important role in helping Peugeot spread its message to potential customers.

Customers and Cohorts

The main customers of the organisation include:

  • Private customers
  • Corporate customers
  • Fleet customers
  • Motability customers
  • Diplomatic customers
  • Exporters
  • Dealers
  • Rental companies
  • Financial institutions
  • Overseas customers

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Brand Loyalty: Peugeot has built a strong brand identity and loyalty amongst customers over the years. This gives the company an edge over its competitors.

Quality: Peugeot has a reputation for producing high-quality vehicles, which is one of the reasons for its popularity.

Innovation: Peugeot has consistently invested in research and development to offer customers the latest technological advancements in safety and performance.

Pricing: Peugeot offers one of the most competitive pricing structures in the market.

Service: Peugeot provides excellent customer service and after-sale support. This helps to ensure customer satisfaction and loyalty.

Market Trends

Market trends can significantly impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and ultimately affecting the organisation’s ability to remain competitive in the market. Staying ahead of these trends enables businesses to proactively adapt their strategies, mitigate risks, and capitalise on emerging opportunities.

As part of this study, we have identified a number of potential trends that could impact the organisation. These include the following:

Market Trends

Key Performance Indicators

Key Performance Indicators
KPIs (Key Performance Indicators) are important to a business such as Peugeot as they help measure progress towards achieving organisational goals and objectives. They provide a useful insight into the performance of different areas of the Peugeot business and therefore enable informed decision-making.

KPIs also help to motivate employees towards achieving targets.

Below is a list of Key Performance Indicators we deem relevant to this company:

Brand Strength

Brand strength is more than a logo or name. It reflects a company’s reputation and how it is perceived by customers, investors, and employees. It is built on core values, mission, and a unique selling proposition (USP) that differentiates the business.

Brand strength goes beyond superficial elements and taps into core values, the defined mission, and unique selling proposition (USP) of a company.

Below are key reasons why brand strength matters:

Trust and Credibility: In a market flooded with choices, customers gravitate toward brands they trust. A strong brand signals reliability and quality, fostering customer loyalty. Loyal customers not only make repeat purchases but also advocate for the brand, driving word-of-mouth growth.

Brand Strength Analysis

Differentiation: A strong brand helps a company stand out in competitive markets by clearly communicating its value proposition. It creates a unique identity, establishes a competitive edge, and positions the company as a leader in its industry. For example, Google is synonymous with internet search.

Customer Loyalty: A positive brand experience builds emotional connections, making customers less price-sensitive and willing to pay a premium. Loyal customers generate repeat business and act as brand ambassadors, reducing customer acquisition costs and boosting long-term profitability.

Talent Acquisition and Retention: A strong brand not only attracts top talent but also enhances employee morale and engagement. Employees who identify with a reputable brand are more motivated, productive, and committed, driving better business outcomes.

Benchmarking Brand Strength

Below is a guide as to the scoring mechanism used to gauge the brand strength of this company:

A

The company enjoys an excellent level of brand strength.

  • This score signifies that the company has developed a highly regarded and well-recognised brand.
  • Customers and the wider community perceive the company as trustworthy, reliable, and superior to competitors.
  • The company enjoys a strong connection with customers, who actively engage with and advocate for the brand.
  • The company's brand effectively communicates its unique value proposition.
  • The corporate attracts and retains top talent, and its reputation extends beyond its target market.
B

The company has a good brand strength, indicating that it has a solid and respectable brand presence.

  • Customers generally have positive perceptions of the company.
  • While the company may not be as distinctive or well-known as the top brands, it still differentiates itself from competitors and enjoys a loyal customer base.
  • The brand inspires some level of customer engagement and advocacy.
  • The company attracts top quality employees and maintains a good reputation. People want to work there.
C

The business has an average brand strength, meaning it is neither strong nor weak in the marketplace.

  • Customers perceive the company as ordinary or run-of-the-mill, lacking an emotional connection or distinctiveness.
  • The company faces challenges in standing out among competitors and needs to better communicate its proposition.
  • Decent level of customer satisfaction, but significant there is room for improvement in terms of brand loyalty.
  • The company's reputation is neither a huge positive, or negative.
D

The company's brand is quite weak. Work required to increase its potential.

  • Customers have mixed or negative perception of the company, associating it with average or below-average quality.
  • The business struggles to differentiate itself from its competitors and lacks a compelling value proposition.
  • Customer engagement and brand loyalty may be minimal, requiring some effort to improve the brand experience.
  • The company's reputation may have encountered challenges, poor press, or may not be well-known in the market.
E

The company's brand is weak and fails to resonate with customers and audiences. This needs to be addressed.

  • Customers perceive the company as being too unreliable, lacking in quality, or irrelevant.
  • The company struggles to differentiate itself from competitors, and there is a lack of customer engagement, or loyalty.
  • The company's reputation may be tarnished or negatively perceived, hindering growth efforts.
  • Significant efforts are required to rebuild the corporate brand and establish a more positive image in the market.
F

The company has a severe lack of brand strength. It is a problem that needs addressing with urgency.

  • The company is poorly recognised, and customers have negative perceptions or zero awareness of its offerings.
  • The company fails to communicate its unique value proposition or inspire customer loyalty.
  • The company's reputation may be highly unfavourable, and attracting customers or top talent is challenging.
  • Immediate and extensive actions are likely necessary to revitalise the brand.

Brand Strength Score

Scoring brand strength is subjective because it relies on individual perceptions and interpretations of various factors, such as customer sentiment, market dynamics, and the competitive landscape, which can vary.

Using our scoring methodology, the average score of a business is calculated as being C (average). This differs from the average score of the top 10,000 businesses featured in our coverage. Weighted to that cohort, the average brand strength score increases to a B (good).

The analysis team have noted the following factors impacting its brand strength:

  • Brand recognition and awareness is strong in Europe, with Peugeot being a household name.
  • Peugeot has developed a strong presence in the automotive industry and is well known for its quality and reliability.
  • Peugeot has a strong focus on innovation, with a range of new technologies being developed.
  • The brand is associated with a long history of reliability and quality, which has enabled it to develop a loyal customer base.
  • Peugeot has a strong presence in various markets, such as the UK, France, Germany, and China.
  • Peugeot has a wide range of products, from cars to motorcycles, and is continually diversifying its offerings.
  • Peugeot has a strong presence in motorsports, having won numerous championships over the years.
  • Peugeot has a strong presence in digital media, with a vibrant online presence.
  • Brand Strength Score: A

7Ps Marketing Analysis

The 7Ps of marketing are crucial components of strategic decision making for any organisation in any industry vertical.

Using the 7Ps in competitive analysis provides a holistic view of the marketplace, allowing businesses to refine their strategies, capitalise on competitors' weaknesses, and better meet consumer needs. The 7P's are defined as:

  • Product/Service
  • Price/Fee
  • Place/Access
  • Promotion
  • People
  • Physical Evidence
  • Processes

All these elements together frame an organisation's marketing mix, crucial for creating effective marketing strategies.

This 7P analysis is designed to provide a valuable insight into the business strategies of the company. It can be used to reveal strengths and weaknesses in their marketing mix, offering opportunities to compare and enhance a business.

1. Product/Services: Peugeot offers a wide range of products and services, including passenger cars, commercial vehicles, and mobility solutions. Their product line includes both traditional gasoline and diesel vehicles as well as hybrid and electric models. Peugeot also offers a variety of services such as maintenance, repairs, and financing options for their customers.

2. Price/Fees: Peugeot's pricing strategy is focused on providing value for money to their customers, while also remaining competitive in the market. They offer a range of prices for their vehicles, catering to different segments of the market. In addition, Peugeot offers financing options and promotions to make their products more affordable for customers.

3. Place/Access: Peugeot has a strong global presence, with dealerships and service centers in over 160 countries. They also have an online platform for customers to research and purchase vehicles. This allows for easy access to their products and services for customers worldwide.

4. Promotion: Peugeot uses a mix of traditional and digital marketing strategies to promote their brand and products. They engage in advertising, sponsorships, and partnerships to increase brand awareness and reach a wider audience. They also use social media and email marketing to target and engage with potential customers.

5. Physical Evidence: Peugeot's physical evidence includes their showrooms, service centers, and vehicles. They focus on creating a modern and sophisticated look for their showrooms to enhance the customer experience. Their vehicles are designed with sleek and stylish exteriors, as well as high-quality interiors, to showcase the brand's image.

6. Processes: Peugeot's processes focus on delivering high-quality products and services to their customers. They have a rigorous quality control process in place to ensure that their vehicles meet industry standards. They also have efficient processes for customer service and after-sales support.

7. People: Peugeot values their employees and invests in their training and development. They aim to have knowledgeable and friendly staff at their dealerships and service centers to provide a positive customer experience. Additionally, Peugeot also has a strong focus on sustainability and corporate social responsibility, which reflects their commitment to the well-being of people and communities.

Potential Products

As part of this study, we have carefully examined and prognosticated a range of new products, services, or innovations that this organisation could potentially develop and introduce to strengthen its market position and respond to emerging industry trends.

Vehicle Maintenance and Repair Services: Peugeot could create a network of authorised service centers and/or mobile repair services to service and repair their vehicles.

Vehicle Leasing and Financing: Peugeot could offer leasing and financing options to customers, allowing them to purchase vehicles without having to pay the full cost up-front.

Aftermarket Parts and Accessories: Peugeot could create a line of aftermarket parts and accessories, such as exterior and interior styling parts, performance upgrades, and more.

Car Wash and Detailing Services: Peugeot could offer car wash and detailing services, allowing customers to keep their cars looking their best.

Vehicle Tracking and Telematics: Peugeot could provide customers with real-time vehicle tracking and telematics, allowing them to monitor their vehicles' performance and location.

Driver Training and Education: Peugeot could create a program to teach new drivers the basics of vehicle operation, safety, and maintenance.

Potential Synergies

Our proprietary product and portfolio-matching algorithm has identified the following organisations as having strong potential synergies with the company, based on strategic alignment, complementary capabilities, and opportunities for collaboration across markets or domains.

1. Renault: Both companies are members of the Renault-Nissan-Mitsubishi Alliance, and they have a long history of cooperating on joint projects.
2. Volkswagen: Peugeot and Volkswagen have a strategic partnership in place, with the two companies collaborating on joint projects and sharing technology.
3. Ford: Ford and Peugeot are part of the Stellantis Group, a 50-50 joint venture between the two carmakers.
4. Hyundai: Peugeot and Hyundai have a strategic partnership in place, with the two companies collaborating on joint projects and sharing technology.
5. FCA: Peugeot and FCA are part of the Stellantis Group, a 50-50 joint venture between the two carmakers.
6. Toyota: Peugeot and Toyota have a strategic partnership in place, with the two companies collaborating on joint projects and sharing technology.

Porter's Five Forces

Developed by Michael Porter in 1979, Porter’s Five Forces is a model used to analyse industry attractiveness and evaluate competitive environments. It considers five forces:

  • Competitive rivalry
  • Supplier power
  • Buyer power
  • Threat of substitution
  • Threat of new entries

We include this framework because it supports strategic planning, investment decision-making, and long-term competitive positioning across industries by highlighting structural pressures, market threats, and potential profit constraints.

The Porters 5 forces for Peugeot are:

1. Supplier power: LOW

2. Buyer power: HIGH

3. Competitive rivalry: HIGH

4. Threat of substitutes: LOW

5. Threat of new entrants: LOW

Peugeot scores relatively POORLY in terms of supplier power and competitive rivalry, but does WELL in terms of buyer power and threat of new entrants. This suggests that the company faces strong competition from other car manufacturers and has little bargaining power with its suppliers. However, Peugeot's customers are relatively loyal and there are few good substitutes for its products.

PESTLE Analysis

A PESTLE analysis is used to evaluate external factors affecting an organisation. It examines (1) Political; (2) Economic; (3) Social; (4) Technological; (5) Legal; and (6) Environmental influences. This framework helps businesses identify potential risks and opportunities in the macro-environment, supporting informed decision-making, strategic planning, and long-term sustainability in dynamic markets.

Reasons to use a PESTLE include:

  • Environmental Scanning: PESTLE helps assess external factors, keeping executives aware of key forces
  • Strategic Planning: It identifies opportunities and threats, aiding market alignment and goal-setting
  • Risk Assessment: PESTLE highlights risks, helping businesses develop mitigation strategies
  • Market Insights: It provides insights into trends, behavior, and regulations for better strategy development
  • Business Adaptation: Regular analysis allows businesses to stay competitive by adapting to changes

Below is the PESTLE analysis for this company:

PESTLE Analysis: political, economic, social, technological, legal, environmental

CATWOE Analysis

CATWOE

The CATWOE analysis helps businesses understand stakeholders' perspectives for informed decision-making, covering six elements:

  • Customers: Beneficiaries of the system’s outputs
  • Actors: Those who influence the system’s functionality
  • Transformation: Converting inputs into value-creating outputs
  • World View: The broader context behind the system’s existence
  • Owner: Decision-makers with authority over the system
  • Environment: External factors impacting the system

The CATWOE analysis is most effective when used alongside a SWOT analysis.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Peugeot business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

SWOT Analysis: strengths, weaknesses, opportunities, threats

Strengths

The strengths of a company refer to its internal attributes or capabilities that provide it with a competitive advantage.

Below is a list of the key strengths we have identified for the business:

1. Peugeot's strategic focus on innovation has resulted in the development of a number of new technologies that have helped to differentiate the company's products and give it a competitive edge.

2. Peugeot has a strong brand and a loyal customer base, which has helped to drive sales and market share growth in recent years.

3. Peugeot has a strong manufacturing base and an efficient distribution network, which have helped to keep costs down and improve profitability.

4. Peugeot has a strong financial position, with a strong balance sheet and healthy cash flows, which provide the company with the resources to invest in future growth.

Opportunities

Opportunities refer to factors that present potential avenues for growth, advantage, or improvement for an organisation.

Below is a list of opportunities we have identified for the business:

1. Increase market penetration in developing countries: Peugeot has a long history of success in Europe and is a well-known brand, however they have not penetrated key markets in Asia, Africa, and Latin America. By expanding their operations into these markets, Peugeot could capitalise on the growing demand for vehicles in these regions, which could lead to an increase in sales of up to 25%.

2. Focus on developing innovative technologies: Peugeot has already begun to focus on developing new technologies such as electric vehicles, autonomous driving, and connected cars. By investing in research and development and focusing on bringing these products to market, Peugeot could increase its market share and remain competitive in the industry.

3. Invest in digital marketing: Peugeot has already begun to invest in digital marketing, however they could further capitalise on this strategy by investing more resources into creating and executing effective campaigns across social media and other digital channels. This could lead to an increase in brand awareness and potentially an increase in sales of up to 10%.

4. Utilise customer feedback: Peugeot could benefit from gathering customer feedback in order to gain insights into customer preferences and identify areas of improvement. This could lead to an increase in customer satisfaction and loyalty, which could result in an increase in sales up to 15%.

Weaknesses

The weaknesses refer to factors that hinder a company's performance or competitive advantage.

Below is a list of the weaknesses we have identified for the business:

1. Lack of focus on key markets: In recent years, Peugeot has been trying to expand its presence in a number of different markets, including Asia and South America. However, this has led to a lack of focus on its core markets in Europe and North America.

2. Declining market share: Peugeot’s market share has been declining in key markets such as France and the UK. This is a major concern as it indicates that the brand is losing customer confidence.

3. Poorly differentiated product range: Peugeot’s product range is not well differentiated from its competitors, making it difficult for customers to see the value in its products.

4. Weak financial position: Peugeot’s financial position has been weak in recent years, with the company posting losses in 2012 and 201

3. This has put pressure on the company to cut costs, which has led to job losses and factory closures.

Threats

The threats to an organisation refer to factors that pose challenges or risks to a company's success.

Below is a list of the threats we have identified for the business:

1. Decreasing sales volume: Peugeot has seen a 6% drop in sales volume in the last year, due to increased competition in the automotive industry and a general decline in consumer interest in cars.

2. Political instability: Peugeot is exposed to political risk due to its large presence in Europe and other parts of the world. The recent Brexit negotiations have caused a lot of uncertainty in the European region, leading to a drop in the value of the Euro and potential changes in the taxation of automotive imports.

3. Environmental regulations: Peugeot has had to respond to increasingly stringent environmental regulations, such as the European Union’s CO2 emissions standards. This has caused Peugeot to shift to more efficient engines and electric vehicles, resulting in higher costs for the company.

4. Technological advancements: Peugeot has been slow to respond to the increasing competition in the automotive industry, which has led to the emergence of new technologies like self-driving cars and advanced infotainment systems. This has put Peugeot at a disadvantage, as they have not been able to keep up with the pace of innovation.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for Peugeot. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Peugeot, as well as areas where the company needs to improve its operations or strategy.
Company: Peugeot is a French automotive manufacturer founded in 1810. It is now a diversified manufacturer of cars, vans, scooters and bicycles. The company also produces and distributes parts, accessories and services for its products.

Collaborators: Peugeot has strong relationships with many automotive suppliers, as well as other companies such as Michelin and Total. It also has a number of joint ventures with other manufacturers such as Dongfeng, Fiat Chrysler Automobiles and BMW.

Customers: Peugeot's primary customers are the general public, through the sale of cars, vans and scooters. The company also has a strong presence in the commercial vehicle market, selling and leasing fleet vehicles to businesses.

Competitors: Peugeot's main competitors are other European car manufacturers such as Volkswagen, Renault, Citroën, Fiat and Ford. It also competes with Asian manufacturers such as Toyota, Hyundai and Honda.

Content: Peugeot produces a wide range of content, including videos, images, articles, infographics and webinars. The company also has an active presence on social media, with accounts on Facebook, Twitter, YouTube and Instagram. It regularly updates its customers with news, product updates and offers.
5C Analysis: company, customers, competition, collaboration, climate

MOST Analysis

MOST Analysis: mission, objectives, strategy, tactics

The MOST analysis framework is used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. The MOST analysis helps executives focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles.

  • Mission defines the organisations purpose and core values, providing a clear direction and inspiration for stakeholders
  • Objectives are specific, measurable targets that support the mission; they indicate what the organisation aims to achieve within a defined timeframe
  • Strategy outlines the high-level approach the organisation will undertake to reach its objectives, detailing how resources will be allocated and initiatives prioritised
  • Tactics are the actionable steps and specific plans that implement the strategy, ensuring that all team members understand their roles in achieving objectives

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

The team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism designed to benchmark innovation.

First, we allocate a score of A-E for the industry, based on the key organisations operating within the space; and then score the individual organisation using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Innovation Scorecard

Industry Score:

A The industry is amongst the most innovative; with the leading players all driving the sector forward.
Example industry: PaaS
B The industry and its leading players have a good track record of innovation; and can quickly react to change.
Example industry: Pharmaceutical
C Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate.
Example industry: FMCG
DBusinesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption.
Example industry: Retail Banking
E The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change.
Example industry: Publishing

 

Company Score:

1 The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2 The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3 The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5 The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.
The team at Platform Executive has judged Peugeot as having an innovation score of B3.

Appendices

The appendices section of this report contains supplementary information that we deem helpful in providing a more comprehensive understanding of the report.

Methodology

This study on Peugeot forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The report is based on information and learning from the following sources:

  • Corporate websites
  • Proprietary research databases
  • SEC Filings
  • Corporate press releases
  • News articles
  • Financial data API's
  • Product-matching algorithm

Further Reading

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Disclaimer

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Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

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