Mercedes Benz Daimler Report

Document Type:Thesis

Subject Area:Business

Document 1

Mercedes-Benz carries a variety of commercial, heavy, and passenger equipment in about 26 countries globally (Vigneron and Lester 2017). Mercedes-Benz’s luxury cars face stiff competition from other brands like Porsche 911 Turbo S (991) PDK, Lamborghini Huracan Spyder, Rolls-Royce Phantom II Saloon, Lamborghini Murcielago Superveloce, and Ferrari 458 Spyder F1 Roadster (Elizabeth 2017). Mercedes-Benz’s S- class luxury sedan is chiefly manufactured for middle-aged persons, both genders as well as for the whole family because it is an automatic, SUV, luxury, comfortable, and spacious car (Elizabeth 2017). Currently, Mercedes-Benz is ranked 12th as the most successful brand worldwide with a value above 28 billion dollars. By considering the company’s production, Mercedes-Benz does not produce in bulk, but it’s a premium brand that focuses on luxury, class, excellence, performance, safety, and style.

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The risk of new entrants in this industry is very low because of the equity and brand that the existing firms have gained and that consumers are unwilling to taste new brands. Over the last few years, some Asian firms have tried to venture into the luxury locomotive business, but they have failed because of the massive initial investments, the economies of scale, and the big advertising and promotion costs, strict government regulations that are required of these firms (Amy 2017). Bargaining power of suppliers. The suppliers’ bargaining power is low because they are many and mostly of small size, but supply to huge automotive players. The existing manufacturers have set high-quality standards that the suppliers have to meet for them to continue supplying their products (Do 2018).

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This implies that the threat of substitutes for Mercedes-Benz is relatively medium. Fig. 1: Porter’s Five Forces Model Analysis of Mercedes-Benz Source: https://bmvsmb. wordpress. com/2014/10/22/porters-5-forces-competitive-analysis-of-the-luxury-car-industry/ Mercedes-Benz’s SWOT Analysis Table 1. • Growing automobile industry. Automobiles have opened several opportunities and freedom that were not available a century ago. • Technological advancement- Mercedes-Benz can become market leaders by developing clean and fuel efficient futuristic and hybrid cars. • Sluggish economy- Macro-economic uncertainties, unemployment, and recession are among the factors which can affect Mercedes-Benz’s performance. • Volatility in fuel prices can affect Mercedes-Benz’s performance because passenger segment remains the determining factor for the growth of the company. Mercedes-Benz continued to grow their sales in Europe in 2017 and increased by 5 percent to 911 700 vehicles (Elizabeth 2017).

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The Mercedes-Benz annual report shows that the sales volume grew significantly in Spain (+8 %), Italy (+9 %), France (+9 %), and the United Kingdom (+4 %) (Davis et al. The report indicates that the company’s new E-Class drove the increased sales level and the total sales reached a new record level of 2. 4 million vehicles globally. Demographic segmentation. Target market Mainly, Mercedes-Benz targets middle and high-income earners aged 25-44 years of age. As the company indicates, Mercedes-Benz Car Group does not produce low priced cars because they are convinced that wealthy consumers can sustain the business. Positioning Mercedes-Benz has positioned themselves through emotional appeal and creating awareness among the consumers, and this has assisted the firm to become the best luxury car company globally. Mercedes-Benz’s marketing mix Mercedes-Benz’s marketing mix shows that Mercedes is a fantastic company that has rolled through patience, hard work, and exceptional implementation of their marketing strategies to build a global brand.

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Mercedes is regarded to be the world’s first maker of luxury vehicles, and this honor is incongruous to fade out any soon (Hitesh 2018). Mercedes- Benz manufactures many types of car models which range from all kinds of convertibles, coupes, full-sized sedans, and sports sedans. Mercedes Group have tried to produce many car models which meet the specification of each age group, and each vehicle is selling from $30 000 to $100 000 depending on the model of the car (Hitesh 2018). Place. Over the years, Mercedes were focused on technological innovations and safety cars, but the models have been copied by other brands thus increasing the competition. As a result of the market competition, Mercedes-Benz is engaged in manufacturing cars that enable them to sell the idea easily to the consumer and compete in the industry.

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