8 November 2010
1. Executive summarypage 2
2. Introductionpage 2
3. External analysispage 3
4. Internal analysispage 5
5. Conclusions and recommendationspage 8
6. Bibliographypage 9
7. Appendixpage 9
1. Executive summary
Daimler AG (‘Daimler’) is engaged in the development and manufacturing of automotive products, consisting of passenger cars, trucks, vans and buses. Daimler wants to inspire its customers with exciting premium automobiles. In addition, Daimler provides financial services to its customers. This paper consists of a strategic audit of Daimler and was carried out on a global level. If the focus is put on particular markets performance indicators may vary.
The economic crisis has had a negative impact on the automotive industry. However, signs of economic recovery are starting to appear. Demand for fuel efficient and electric cars is expected to increase dramatically as oil prices are starting to rise and regulations on CO2 emissions are tightening.
Within the automotive industry there is fierce rivalry. The strong research and development (‘R&D’) department of Daimler should therefore strive to benefit from opportunities stemming from increased demand for fuel-efficient cars. Daimler Buses and Daimler Trucks, which used to be among the industry’s leaders, have lost much in their growth ratios but still have a very high market share. The emphasis on alternative energy sources will enable Daimler to enhance its market share with its products. The expected market growth in emerging markets provides Daimler with further opportunities. It is therefore necessary to enter into strategic partnerships with automotive manufacturers in Russia, India, and China. The strong brand image of Mercedes-Bens will help Daimler in this regard.
Four out of five of the business units of Daimler experienced a significant decline in sales during the past couple of years and Daimler finished 2009 with a loss in net profit. Moreover, the financial performance of Daimler in 2009 was lower compared to competition. Consequently, the company’s credit ratings dropped. Daimler should strive to improve the efficiency of their value chain by reducing its large overhead costs and improving the relationship with their suppliers. 2. Introduction
Daimler is one of the leading automobile companies and consists of Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, and Daimler Financial Services. According to Daimler’s 2009 Annual Report, their product and service break down allows it to be a leader in producing premium cars and commercial vehicles, worldwide. Their Financial Services unit permits their customers not only to purchase a vehicle from them, but to finance it through them as well. These services include: financing, leasing, insurance and fleet management.
As inventor of the automobile, Daimler is constantly working towards new innovations in the automotive industry. As stated in Daimler’s 2009 annual report their mission is as follows: “to inspire customers with exciting premium automobiles that set standards in design, safety, comfort, perceived value, and reliability”. Daimler believes having a strong philosophy behind their mission will allow them to accomplish their mission. Daimler states their philosophy as “We give our best to our customers, who expect the best, and we live out a culture of excellence based on shared values”. Daimler’s vision encompasses the following: to be among the world’s leading automotive companies, inspire customers with their brands, products, and services, occupy the leading position in each market segment, and most importantly with pioneering technologies Daimler wants to be the world leader for sustainable drive systems and safety (Daimler, 2009, p.64).
In order to accomplish their mission and ultimately reach their vision...