Strategic analysis of Mercedes Benz

Résumé du document

Mercedes-Benz is a German brand of automobiles, buses, coaches and trucks from the DaimlerChrysler company (formerly Daimler-Benz), commonly known as Mercedes. Mercedes-Benz is the world's oldest automobile manufacturer and the origin of the company dates back to the 1880s, when Gottlieb Daimler and Karl Benz invented the internal combustion engine-powered automobile independently.

Daimler Motorengesellschaft and Benz & Cie were originally two different manufacturers. Following the First World War, they started to cooperate to deal with the economic crisis in the car industry. After a few attempts to merge Benz and Company with Daimler Motor Company an agreement was made and the two companies merged on June 28, 1926. The name of Mercedes name is due to the name of a successful car created by Daimler in the 1900's. Since that, the company has focused its vehicles on high quality and state of the art engineering. As a result they have often been expensive and are made in lower volumes compared to cheaper cars. The company has carefully cultivated an image of superior engineering, quality, and service. The cars are often the vehicle of choice for the rich and famous.

Extraits

[...] Their influences are consequently more powerful. Automotive News Europe The Wall Street Journal - SPACE analysis: “SPACE (strategic position and action evaluation) analysis extends environmental analysis beyond the consideration of turbulence to look at industry strength and relates this to the competitive advantage and financial strengths of a company” (Hooley G. et al, 2004) Company dimensions: - Financial strengths: Return on investment: high (2,25 billion) Leverage: high Liquidity: high (Mercedes is a part of DaimlerChrysler Group) Cash flow: high Exit barriers: high Financial strengths of Mercedes are strong. [...]

[...] The actual situation of the brand suggests a good development in the future. Daimler Chrysler annual report 2004 Daimler Chrysler annual report La Tribune France 09/05 II Internal and external audit of the organisation positions: 1 SLEPT analysis SLEPT analysis is a tool for undertaking an environmental analysis for an industry. It is therefore essentially an environmental checklist of external elements which both influence and constrain the industry's operations. importance of macro environmental analysis is that it defines the treats and opportunities facing the firm, both now and in the future” (Baker M.J., 1998). [...]

[...] Mercedes determined that by 2001, this “Entry Luxury Car Segment” accounted for 75 percent of the luxury car market sales Positioning: The positioning of the brand is really oriented on a specific way. Mercedes is today perceived as a strong and luxury brand in the world. Originally, the brand was “reserved” for people from the high society and was perceived largely better than BMW and Audi. Actually, the brand wants to reinforce this value in order to keep a strong position on the luxury car segment. Because for few years, BMW is the first brand of the sector of luxury cars in the world with 10% more unit sales than Mercedes. [...]

[...] In this way models have prices comprised in these two segments Mercedes targets / Social class: The brand is focused on customers who are in upper middle and upper class Mercedes targets / Life cycle: The brand is focused on Bachelor, Full nest II and III, Empty nest I and Solitary survivors I. It appears, after market segmentation (see above) that Mercedes operates niche marketing. Consequently, three types of bodywork are ahead and customers with good social class are targeted. [...]

[...] Following the First World War, they started to cooperate to deal with the economic crisis in the car industry. After a few attempts to merge Benz and Company with Daimler Motor Company an agreement was made and the two companies merged on June The name of Mercedes name is due to the name of a successful car created by Daimler in the 1900's. Since that, the company has focused his vehicles on high quality and state of the art engineering. As a result they have often been expensive and are made in lower volumes compared to cheaper cars. [...]