Accountant
Case: Mercedes-Benz All Activity Vehicle (AAV)
1. What is the competitive environment faced by MB?
The competitive environment that MB was faced with included difficulties in controlling costs, material purchasing, and problems in adapting to changing markets. The needs of customers were changing, and during 1993, MB had their worse sales in decades, as a result MB lost money for the first time in its history. Something needed to be done, and the AAV project began in 1993 with production commencing in 1997. As it was discovered there was an opportunity for a new vehicle market segment. The analysis revealed that there was a rapidly expanding sports utility vehicles market, which at that time was primarily dominated by Jeep, Ford, and GM.
2. How has MB reacted to the changing world market for luxury automobiles?
MB reacted by developing its own All Activity Vehicle (AAV) that would compete in the fast growing sports utility segment. In addition, MB has moved its manufacturing facilities to United States because MB wanted to be close to the major market for sports utility vehicles. MB also became more customer oriented and used customers opinions for developing almost every piece of the car. On this project, MB worked extensively with customers, suppliers and its designers to develop a car that would not only meet customer expectations but would also help MB to remain profitable.
3. How does the AAV project link with MB strategy in terms of market coverage?
MB strategy in terms of market coverage was to streamline its core business and the AAV project helped MB to accomplish just that. MB wanted additional market share, new segments, and new niches. MB started developing a new set of products like the C-class, E-class, SLK, A-class and M-class. To enter into the sports utility vehicle market MB used the AAV project. In accordance with the MB strategy, AAV was expected to get additional market share with the help of AAV, it
1. What is the competitive environment faced by MB?
The competitive environment that MB was faced with included difficulties in controlling costs, material purchasing, and problems in adapting to changing markets. The needs of customers were changing, and during 1993, MB had their worse sales in decades, as a result MB lost money for the first time in its history. Something needed to be done, and the AAV project began in 1993 with production commencing in 1997. As it was discovered there was an opportunity for a new vehicle market segment. The analysis revealed that there was a rapidly expanding sports utility vehicles market, which at that time was primarily dominated by Jeep, Ford, and GM.
2. How has MB reacted to the changing world market for luxury automobiles?
MB reacted by developing its own All Activity Vehicle (AAV) that would compete in the fast growing sports utility segment. In addition, MB has moved its manufacturing facilities to United States because MB wanted to be close to the major market for sports utility vehicles. MB also became more customer oriented and used customers opinions for developing almost every piece of the car. On this project, MB worked extensively with customers, suppliers and its designers to develop a car that would not only meet customer expectations but would also help MB to remain profitable.
3. How does the AAV project link with MB strategy in terms of market coverage?
MB strategy in terms of market coverage was to streamline its core business and the AAV project helped MB to accomplish just that. MB wanted additional market share, new segments, and new niches. MB started developing a new set of products like the C-class, E-class, SLK, A-class and M-class. To enter into the sports utility vehicle market MB used the AAV project. In accordance with the MB strategy, AAV was expected to get additional market share with the help of AAV, it