Closing Case Study on Chrysler

Topics: Strategy, Jeep, Daimler AG Pages: 2 (689 words) Published: October 5, 2010
1998 is when Daimler-Benz acquired Chrysler. Many people thought that Chrysler would break away from Ford and GM and join Japanese automobile makers. The planned strategy at Daimler-Benz for Chrysler in 1998 was to emphasize bold design, better product quality, and higher productivity by sharing designs and parts between the two companies. This strategic plan however, proved to be disastrous for Chrysler. Looking back, I’m sure the company’s CEO’s can see the poor decisions they made. They may have overlooked the present condition of the economy, or did not take into consideration where the economy was headed. Also, they may have made the decision without really researching, or using test markets somehow to see how and if their strategic plan would be successful. Even though Chrysler dealt with a lot financial struggle in the 90’s, by 2004 things seemed to be turning around for the company. In 2005, Chrysler had some good opportunities. They made really good money in ’05 and even managed to gain market share. The CEO at this time, Dieter Zetsche, was hopeful that he would be able to make profit with the introduction of a new SUV—the seven seat Jeep Commander. The new introduction was thought to be just what the company needed. The timing, however, could not have been worse. In 2005, oil prices rose, and supplies became very tight due to Hurricane Katrina. By 2006, the price of oil drastically rose to an astounding $70.00 a barrel up from about $35.00 a barrel just 18 months prior. Gas prices also hit an astonishing $3.00 a gallon. Despite all the hardships they faced between 2005 and 2006, Chrysler definitely had some strengths. Not only did the company manage to turn itself around, but they gained market share, and in my opinion, they most likely started to gain back the loyalty of their customers. The CEO also started to come up with ideas for new vehicles, such as the Jeep Commander. To go along with their strengths, however, they did...
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