Daimler Ag - Analysis

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STRATEGIC AUDIT OF DAIMLER GROUP

STRATEGIC MANAGEMENT

8 November 2010

CONTENT:

1. Executive summary page 2 2. Introduction page 2 3. External analysis page 3 4. Internal analysis page 5 5. Conclusions and recommendations page 8 6. Bibliography page 9 7. Appendix page 9

1. Executive summary
Daimler AG (‘Daimler’) is engaged in the development and manufacturing of automotive products, consisting of passenger cars, trucks, vans and buses. Daimler wants to inspire its customers with exciting premium automobiles. In addition, Daimler provides financial services to its customers. This paper consists of a strategic audit of Daimler and was carried out on a global level. If the focus is put on particular markets performance indicators may vary.

The economic crisis has had a negative impact on the automotive industry. However, signs of economic recovery are starting to appear. Demand for fuel efficient and electric cars is expected to increase dramatically as oil prices are starting to rise and regulations on CO2 emissions are tightening.

Within the automotive industry there is fierce rivalry. The strong research and development (‘R&D’) department of Daimler should therefore strive to benefit from opportunities stemming from increased demand for fuel-efficient cars. Daimler Buses and Daimler Trucks, which used to be among the industry’s leaders, have lost much in their growth ratios but still have a very high market share. The emphasis on alternative energy sources will enable Daimler to enhance its market share with its products. The expected market growth in emerging markets provides Daimler with further opportunities. It is therefore necessary to enter into strategic partnerships with automotive manufacturers in Russia, India, and China. The strong brand image of Mercedes-Bens will help Daimler in this regard.

Four out of five of the business units of Daimler experienced a significant



Bibliography: Barrows, David and Smithin, John. Fundamentals of Economics for Business. Captus Press Inc. and World Scientific Publishing Co. Ptw. Ltd, 2009. Hitt, Ireland, Hoskisson, Strategic Management: competitiveness and globalization. Thomson South-Western, 2007. Johnson, Scholes, Whittington. Exploring Corporate Strategy. Harlow: Financial Times Press, 1995. Official Journal of the European Union. Regulation (EC) No 443/2009 of the European Parliament and of the council. 2009. Porter, Michael E. Competitive Strategy: Techniques for Analyzing Industries. New York: The Free Press, 1980. United Nations Climate Change Conference 2009. Copenhagen Accord. Copenhagen, 2009. Millward Brown Optimor. The BrandZ Top 100 Ranking: Top 100 most valuable global brands. The 5th Annual Release, April 28, 2010. .

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