Opportunities for Mercedes-Benz
- Joint venture.
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Improving safety, comfort, and sustainable mobility.
- Providing fascinated vehicles for customers by the supportive of DaimlerChrysler Group
- Professional sport sponsorship
Before we go through the opportunities of the business, we have to take seriously on the threats at first. Apparently, Mercedes Benz is a global brand company and yet they are facing a lot of difficulties as well. Although they have a lot of difficulties, they still can handle them properly.
Threats for Mercedes
- A tax increase for importing vehicles.
- Less educated employees in China, but also very expensive to hire employees in Europe.
- Competitors that the Mercedes company had
- BMW(the most direct competitor) .Luxury small car market with less expensive sub-compact model
- Cadillac (GM)-Concentric diversification
- Lincoln (Ford)-Attract satisfied customers with improved products
- Lexus (Toyota)- Sticker prices considerably below other luxury cars
It is very common that every company has its own weaknesses. As Mercedes Company is a large company, therefore it’s quite obvious the business has the deficiency of communication in the organizations. Although the costs are very high, the advantages have overweighed the disadvantages, thus there is the attractiveness which leading the people willing to buy.
Below are the weaknesses for Mercedes Benz:
- Lack of communication between the heads of office and the staff due to the method of communication they use.
- The costs of vehicles are much more higher than other vehicles in market which the majority of people can’t afford
- Hardly retrieving the confidence of the customers if the business goes wrong only once because of high expectation or reputation of company.
PEST analysis
Political
- the cars and trucks are powered by engines running on fossil fuels i.e. gasoline and diesels, emitting carbon gases that pollute the environment, the green house effect
- the governments within the European Community have introduced various legislations to minimize the emission of such gases forcing the manufacturers to develop less polluting engines, Euro 4
- automobiles are also major causes of road accidents hence, government legislations have been introduced to improve safety to car drivers as well as the users of public transportation
Economic
The Mercedes-Benz has manufacturing plants in many countries including Germany, the United States, Brazil, South Africa and many more. Its factories employ ten of thousands of people to make cars and distribute them globally. The immense size of its operations and its global presence also means that it also contribute significant amount to the various government in taxes and duties. It also contributes a lot to the local economy through local out-sourcing of materials and parts. With such huge operations, a lot of money in various currencies, US Dollar, Euro, Japanese Yen, is involved and a lot of banks are partners of Mercedes-Benz, providing banking services including loans and foreign currencies support, earning these banks interest income and foreign exchange service fees and gains.
Social
Mercedes cars are expensive and considered luxury cars by most people. Owning a Mercedes-Benz is synonymous with being rich and successful. Although most brands of cars, be they Japanese, European or American made, are of the top quality and with the most trendy style, Mercedes-Benz has successfully promoted itself to be the best car. This is achieved through a lot of media promotions involving popular personalities like famous sportsmen, movie stars and top fashion models. Participation in the Formula 1 races also give wide television coverage to the brand.
Due to the success and effectiveness of these promotions, even a 5 year old kid knows that the 3-point star Mercedes-Benz logo represents quality and high price.
Technological
There are many large and well established automobile manufacturers in the world including, BMW and Audi from Germany, General Motors and Ford from the United States and Toyota and Honda from Japan, to name a few. Moreover, many countries also have car manufacturing capabilities through their own development or through technology transfers from the established manufacturers. Hence, the automobile industry is very competitive. Manufacturers keep introducing new models, with the latest design and technology to increase sales. Huge sum of monies are spent on research and development to come up with a better car to meet customers demand, taste and to be ahead of their competitors. In recent years, a lot of monies have been spent to develop new engines to meet low pollutant emissions regulations introduced by governments. A lot of computer technologies have also been introduced to improve performance and safety.
Conclusion
In my opinion, the styling of the Mercedes-Benz is its most distinctive feature, and is more enduring than the styles of other cars. American and Japanese cars, for example, become outdated within a couple of years after their introduction, but Mercedes styling remains consistent and attractive. The interior styling of a Mercedes is particularly impressive. Its richly padded seats and dashboard and its precision instrumentation give drivers a feeling of security and luxury. Mercedes-Benz places driver and passenger comfort high on its list of priorities. The Mercedes-Benz engine is almost as legendary as its styling. Mercedes was a pioneer of diesel technology, and its engines are stronger in horsepower and last longer than those in other types of cars. After a few years, the Mercedes reveals another advantage that confirms its outstanding reputation. In extreme conditions such as the Middle East or the American Northeast, many American cars become badly rusted and sound as if they are falling apart after just a couple of years. The construction of the Mercedes body and its rust protective finishes are so superior to other cars that a Mercedes-Benz will show no signs of rust and develop no rattling body parts or sagging doors even after ten years or more in such places. The Mercedes-Benz, even though it is undoubtedly expensive in terms of initial cost, is really an exceptional value due to the enduring quality of its styling, the reliability of its engine, and the durability of its body construction. These advantages are what make Mercedes-Benz the best car in the world.
