Daimler Ag

Topics: Automotive industry, Mercedes-Benz, Daimler AG Pages: 11 (4059 words) Published: June 8, 2013

Brett Levy & Nathan Lester

Table of Contents
5 Forces Model of Industry Competition4
Explanation of 5 forces model5
SWOT Analysis9
Explanation of SWOT10
Generic and Grand Strategies13

Daimler AG was founded in 1896 by two German inventors Gottlieb Daimler and Carl Benz in Stuttgart, DE (Germany). Though originally two separate companies, Daimler Motoren Gesellschaft and Benz and Company, the companies merged to become Daimler-Benz AG in 1926. The companies began as engine and auto mobile manufacturers (motorized cars, trucks, and bicycles) most notably with its Mercedes-Benz automobile. Collectively they were the true inventors of the automobile, creating models in separate locations in 1886. Daimler-Benz AG produced developed the first truck for military use in the First World War. During the Second World War, Daimler-Benz AG produced new vehicles for war along with new, advanced aircraft engines. Their developments gave the Nazi Army an advantage in mobility and speed. Post-World War 2, Daimler-Benz AG suffered significant losses due to the Potsdam Agreement. The company was forced to start all over. It was given a chance in the 1950s when it developed the commercial-vehicle division. Daimler-Benz manufactured trucks that had new diesel engines and supported much of the shipping industry in Europe. The company became a major player in the global automotive industry from the 1960s onward. Its commercial vehicles were used all over the world and the prestige of its automobiles was known to all. Daimler-Benz now manufactured a wide range of vehicles and engines that would be used all over the world. The company would become the first to offer many innovations, between 1960 and 1990, such as anti-lock brake systems (ABS), airbags, belt pretensioners, and the crumple zone (where certain sections of vehicles are made to break in a certain way to protect the driver). In 1998, Daimler-Benz AG merged with the Chrysler Corporation and became DaimlerChrylser AG. The company as a whole began to restructure its entire product line including the introduction of different classes of passenger-cars. During the early 2000s the Mercedes-Benz A, B, C, E, S, and CLK classes were conceived and are still intact today. In 2007, the name of DaimlerChrysler was changed to Daimler AG and all shares of Chrysler were relinquished. Today, Daimler AG makes a wide variety of engines, automobiles, commercial vehicles, and busses. Their mission focuses on “Innovative and green technologies as well as on safe and superior automobiles that appeal to and fascinate their customers” (Daimler, 2013). Daimler AG is best known for the Mercedes-Benz, but they also offer other car lines including Maybach, Mercedes-AMG (high performance sports cars), and the Smart Car brand. With the exception of Smart Car, the entire Mercedes-Benz division is regarded as an upscale often luxury vehicle. Maybach and Mercedes-AMG hold the most prestige while the classes (From S to E) represent the next levels. The company also produces sport utility vehicles which are their own G and M class. Daimler AG operates a vast commercial vehicle sector including Mitsubishi Commercial Vehicles, Sterling Truck, Thomas Buses, Freightliner, Western Star, and Alliance Truck Parts. Recently, Daimler AG has ventured into some developing economic markets (such as China and India) by offering a more affordable lower class of vehicles. These vehicles are still at the top level in the respective countries and are often the best that are offered (compared to other brands).

5 Forces Model of Industry Competition

Explanation of 5 forces model
Daimler AG, has many competitors within the auto industry. Companies such as Acura, Audi, BMW, Cadillac, Jaguar, Lexus, Lincoln, Porsche, and Range Rover are in direct competition with Daimler’s Mercedes-Benz line. The Smart Car line has competition from Fiat and...

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Company Profile: Daimler AG
Datamonitor. (2011). Daimlerchrysler AG SWOT Analysis. Business Source Premier, 1-12.
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Mercedes-Benz SWOT Analysis Profile
Patterson, A. (2011, November 10). Porter 's 5 Forces. Retrieved from http://www.slideshare.net/Rahim_507/mercedes-benz-16583186
Uzwyshyn, R. (2013). The US Auto Industry in 2013: Five Forces to Consider. Business Source Premier, 221-223.
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