Huaneng Power International Inc.

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Student Name: Azar Parsi
Student ID: MBA-1110-0236
Lecturer Name: Mr. Roger
2012
International Marketing
(Assignment 1)

Table of contents
Introduction ....................................................................................................................3 Section One ………..………..…………………………………..…………………………….4 Section Two ………………………………………………………………..…………,……….6 Section Three ………...…………………………………………………………...………….10 Conclusion………………………………………………………………………………..…...11 References…………………………………………………………………………………….12

Introduction
Back in 1998, Daimler-Benz, the German manufacturer of luxury automobiles, had only captured less than one percent of the American market. Meanwhile, the American Chrysler Corporation was willing to extend its international reach, especially in Europe. Given the circumstances, both companies came to the conclusion that a merger would make sense. On May 7 th , 1998, the merger was officially announced as the largest trans-Atlantic merger ever. Its core activities are concerned about building of vehicles, including Mercedes-Benz luxury passenger cars, Jeep, Dodge, Chrysler, pickup trucks, minivans, and commercial vehicles including vans, trucks and buses and most importantly micro compact cars named “Smart”. Smart cars are equipped with system-driven forms of artificial intelligence. In particular, they are capable of independent thoughts and actions, which make the driving task much easier for the drivers. Recently, there have been some innovations made in the newer made models such as modern automatic emergency notification system, autonomies cruise control, headlamps, lane departure warning, etc. in order to make them much suitable. Given all such improvements made, the significant concern still remained is about the level of people expectations and demand and its state of being competitive in the today’s world among huge car makers. (DaimlerChrysler Annual Report, 2011). According to historical information, the revenue stream of DaimlerChrysler is highly dependent on the United States and Europe. However, the company has not been able to generate a satisfactory level of revenue from sale of its smart cars. As such, the company has recently attempted to penetrate in the Asian market to satisfy its profitability and revenue requirements. Therefore, it might be important to analyze and examine the level of people demand as well as competitive advantages of smart cars within the Asian context (Curry, 2009).

Section One: Competitive advantage of Smart Cars in Asia
As noted before, the market of DaimlerChrysler for sale of products in the European and American context has developed largely while in the Asian context, there have been limited efforts done to grab the market. According to the evidences, the smart cars in Asia have been introduced for the first time in China and have gained large demands from the public. The demand was basically related to the cars’ convenience level, its agility on city roads, well-defined safety standards, its eco-friendly technology and most importantly no oil consumption ("Auto special: Smart car, but 'Big, in the city'," 2011). As a result of great sales performance of smart cars in the Chinese market, China has become the first largest market for such products in Asia. Agility on City roads

Nowadays, people tend to purchase those vehicles which are agile on city roads. Normally, micro cars are best choices for families as well as individuals who are driving in the cities. Smart car is a micro compact car with an acceleration from 0 to 60 km/h in 6.5 seconds, which makes it hard to beat at traffic lights. Furthermore, the small size of the car helps to avoid crashes as they are very maneuverable. This can bring about a competitive advantage to the smart cars in Asia, as the car usage in big cities is constantly increasing (Mays, 2007). Safety Standards

The designing of smart car has been done with the highest level of protection similar to...
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