Topics: Mercedes-Benz, Mercedes-AMG, Car manufacturers Pages: 9 (1695 words) Published: October 2, 2014
Mercedes-Benz growth strategy
Mercedes-Benz made achievements for more than one hundred years, and it will continue its successes for another hundred by their strategies. They launched their short-term strategy, which called ‘Mercedes-Benz 2020 growth strategy’. All of their activities are based on this strategy, like they built a new plant in Beijing. Their goal is taking the leading role of premium automobiles by the end of this decade. They desired taking their leading role on brand image, product range, unit sales, and profitability. For instance, they want to increase their unit sales to 1.6 million on 2015. And based on their ‘Vans goes global’ strategy, they want their vans can get a profitable growth. They also launched their ‘Target System’, which can leading them to a sustainable profitable growth. They need working with passion, respect, integrity, discipline, and then they can be high performing. Mercedes-Benz want their business growth can be sustainable, not increasing rapidly like other high-tech firms. After these they can making growth on their products, consumer experience, brand image, technology, and global presence. At the end, they can increasing their profit a lot. M&A and strategic partnerships

Mercedes-Benz has its subsidiary in China, Mercedes-Benz (China) Ltd. (MBCL). This corporation sales imported vehicles form Germany, and these vehicles are really expensive like the S-Class cars. To reduce the cost, Mercedes-Benz directly invest a lot in China and get more benefits on it. Beijing Benz Automotive Co. (BBAC) is an automotive manufacturing company headquartered in Beijing, China, and a joint venture between Beijing Automotive Group and Daimler AG. Beijing Benz doesn’t produce S-Class vehicles, it assembles and manufactures the Mercedes-Benz E-Class, C-Class, and GLK-Class with high quality in China. Beijing Benz grew out of what was originally the Beijing Jeep Corporation, China's first Sino-western automotive joint venture having been established in 1984 with American Motors Corporation. Daimler contribution to the registered capital with a 50% share, and Beijing Jeep own other 50%. Mercedes-Benz also produces commercial trucks in China by Beijing Foton Daimler Automotive (BFDA). This company is also a joint venture enterprise with Beiqi Foton Motor Co., Ltd. (Foton Motor or Foton) and Daimler. The Daimler own 50% stake and Foton own the other 50%. BFDA opened a second plant in Beijing Huairou district in order to boost annual production to 160,000 trucks. The trucks designed by Mercedes-Benz, so they don’t like products by a Chinese local company. Mercedes-Benz also has joint venture with Baotou Bei Ben Heavy-Duty Truck Co., Ltd and Fujian Daimler, all about 50% stake. The reason Mercedes-Benz can only make joint venture with Chinese local companies is Chinese government’s issue. Government regulations mean that if foreign corporations want to build vehicles in China, they must set up a local joint venture operation with a local firm, which means splitting costs and profits. However, the booming Chinese market is just too important to ignore, encouraging Daimler to hook up with a major Chinese player. Branding, Targeting, and Product positioning

Every companies prefer their brand image can be the top one in their industries, Mercedes-Benz is the same. They trust their brand strategy ‘The best or nothing’, which means consolidate the top position of the Mercedes-Benz brand. Mercedes-Benz has adopted a brand strategy as a manufacturer of highly reliable and safe automobiles, resulting in a price premium relative to similar international competitors like BMW and Audi. Also, their design is fashion, luxury, and high quality, it can attract more wealthy people to purchase. Mercedes-Benz is also one of the most valuable brands in 2013, about 31.9 billion dollars. Mercedes-Benz’s traditional target market is middle aged people of middle or high income, mostly wealthy people. These group...
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