Mercedes Benz - Corporate Strategy in Emerging Markets

Only available on StudyMode
  • Download(s) : 582
  • Published : March 12, 2013
Open Document
Text Preview
MERCEDES-BENZ CORPORATE STRATEGY IN EMERGING MARKETS

Submitted for: BMA5013 Corporate Strategy, Prof. Sai Yayavaram Submitted by: Pia Rauch Akhil Singhania Ayush Trivedi Jaime Garriga Beloso Lüthje Brandt

Submission date: 04/11/2011

MERCEDES-BENZ – CORPORATE STRATEGY IN EMERGING MARKETS

TABLE OF CONTENTS
1. 2. 3. 4. 5. 6. 7. 8 GLOBAL HISTORY................................................................................................................. 1 MERCEDES-BENZ IN INDIA ................................................................................................. 3 MERCEDES-BENZ IN CHINA ................................................................................................ 6 SIMILARITIES & DIFFERENCES IN EMERGING MARKET STRATEGIES ......................10 OPPORTUNITIES AND CHALLENGES IN INDIA AND CHINA .........................................12 RECOMMENDATIONS ..........................................................................................................14 APPENDIX ..............................................................................................................................17 REFERENCES.........................................................................................................................29

CORPORATE STRATEGY GROUP PROJECT: GROUP 2

ii

MERCEDES-BENZ – CORPORATE STRATEGY IN EMERGING MARKETS

1. GLOBAL HISTORY
In 1886 Carl Benz developed the world’s first automobile, the 3-wheeled “Benz PatentMotorwagen”. At the same time, Gottlieb Daimler, who never met Carl Benz in person, despite the fact that they only lived 100 km apart, produced the world’s first 4-wheeled automobile. From the very beginning, both men were committed to very high quality standards (“the best or nothing”), a prevailing characteristic that is still highly valued. With Deutsche Bank playing an important role, Daimler Motorengesellschaft and Benz & Cie. merged in June 1926 to create Daimler-Benz AG. World War II, in which Daimler-Benz mainly produced trucks for military use, had devastating effects on the company. The Potsdam Agreement resulted in the confiscation of all German assets abroad to pay reparations. Additional to the loss of foreign subsidiaries, affiliates and branches, the company also lost all assets in the Soviet-occupied zone of Germany. Hence, in 1945 Daimler-Benz was reduced to its four original plants in Southern Germany (Untertürkheim, Sindelfingen, Mannheim and Gaggenau) and Berlin-Marienfelde plus company-owned West German outlets. By 1947, production was running again in all plants and Daimler-Benz AG was able to recapture the position it had maintained before the war by 1960. To satisfy the high demand for high-quality automobiles, Daimler-Benz took over Auto-Union in 1958 and also tried to acquire Bayerische Motorenwerke AG (BMW), which failed due to the resistance of small shareholders at the BMW annual shareholders’ meeting in 1959. In the sixties and seventies Daimler-Benz AG continued its domestic production and centralized strategy until the second oil crisis in the late 1970s, the beginning environmental discussion, and the advance of Asian competitors changed the conditions. Operating results were declining and the commercial vehicle sector even yielded negative numbers, so that Daimler-Benz AG had to restructure itself to position the company for the future.

CORPORATE STRATEGY GROUP PROJECT: GROUP 2

1

MERCEDES-BENZ – CORPORATE STRATEGY IN EMERGING MARKETS

During the course of this restructuring, Mercedes Benz AG was founded on June 29th, 1989. Taking the advancement of globalization into account and to show its global reach and importance, Daimler Benz AG obtained a listing on the New York Stock Exchange (NYSE) in 1993. Additionally, in 1996 an automobile plant was inaugurated in Tuscaloosa, Alabama, and in May 1998 the merger with Chrysler Corporation was announced. DaimlerChrysler AG was formed to protect the...
tracking img