Daimler-Chrysler's Strategy
Questions and Answers 1. What are the strengths and weaknesses of Daimler-Chrysler’s strategy?
There are several strengths of Daimler-Chrysler’s strategy. First, it has strong competitors amongst the automotive market, so from the merger, both companies will reduce the intense competition in the market and this will increase the market share in the worldwide automotive industry. The acquisition and merger between two parties in worldwide market share will help them to expand the technology transfer between the countries, and this will increase the efficiency and effectiveness of productions, directly will reduce the cost of production amongst the car makers. Second, the strategy of Daimler-Chrysler will enhance the decreasing of human capital usage. When the usage of human capital is reduced, it will help the company to reduce its cost of staffs as both companies are work together. This help the companies to enabling the effectiveness and efficiency amongst the staffs and directly it will improve the quality of their product as there is not many staff involve in the production, thus quality control amongst the staff is high. Reducing in human capital cost also will enable the companies to focus their fund into other strategy in order to increase the revenues. Besides, the company will have a chance to create a new brand in the market share of the same industry. So, will allow them to create a new strategy in their operations and this might give an opportunity to increase their sales and revenues. So, finally they are able to achieve the success with minimum investment.
However, there are several weaknesses of Daimler-Chrysler’s strategy. First, it is absolutely will not develop its own car as it will use the name of other worldwide companies as the strategy to enhance the sales and revenue in worldwide market. Their brand name will no longer used in this strategy. Second is, it has a high potential threat from Mitsubishi and Hyundai as both of them are
There are several strengths of Daimler-Chrysler’s strategy. First, it has strong competitors amongst the automotive market, so from the merger, both companies will reduce the intense competition in the market and this will increase the market share in the worldwide automotive industry. The acquisition and merger between two parties in worldwide market share will help them to expand the technology transfer between the countries, and this will increase the efficiency and effectiveness of productions, directly will reduce the cost of production amongst the car makers. Second, the strategy of Daimler-Chrysler will enhance the decreasing of human capital usage. When the usage of human capital is reduced, it will help the company to reduce its cost of staffs as both companies are work together. This help the companies to enabling the effectiveness and efficiency amongst the staffs and directly it will improve the quality of their product as there is not many staff involve in the production, thus quality control amongst the staff is high. Reducing in human capital cost also will enable the companies to focus their fund into other strategy in order to increase the revenues. Besides, the company will have a chance to create a new brand in the market share of the same industry. So, will allow them to create a new strategy in their operations and this might give an opportunity to increase their sales and revenues. So, finally they are able to achieve the success with minimum investment.
However, there are several weaknesses of Daimler-Chrysler’s strategy. First, it is absolutely will not develop its own car as it will use the name of other worldwide companies as the strategy to enhance the sales and revenue in worldwide market. Their brand name will no longer used in this strategy. Second is, it has a high potential threat from Mitsubishi and Hyundai as both of them are