Mercedes Benz Swot, Segmentation, 4p's

Topics: Mercedes-Benz, Mercedes-AMG, Luxury vehicle Pages: 5 (1606 words) Published: June 25, 2012
SWOT Analysis

As for sure, Mercedes-Benz is a well-known vehicle business throughout the world. It is a global leader in premium cars and has a strong brand value. Hence, the strengths would be a lot than I expected. The brand reputation is the obvious strength for this company. Mercedes Benz is a famous German brand of premier automobile manufacturers in the world which is good in producing automobiles, buses, coaches and truck. It is also the world’s oldest company, which offers these type of vehicles and they are comfortable and safety. On the other hand, Mercedes Car Group has increased 2006 sales to record 1,260,600 passengers vehicle all around the world, hence the market knowledge and market share are also one of the strength of the company. Furthermore, the financial muscle of Mercedes is strong it is because the sales have increased in 2006 by 8 percent compare to the same period of the past year. (January-November 2005:961,600). As Mercedes Benz having impressive history with production over 37 countries is being financially strong company. Moreover, the distribution channels are also as tough compare to its direct competitors, BMW. Mercedes Benz has factory in 37 countries. Therefore, ease to reach of customers is beneficial to the company. In addition, Mercedes Benz has built a fine position in customers’ mind. The company has cautiously shown an image of advanced engineering, quality, product and service. The rich and famous are often choose Mercedes Benz as their choice of vehicle. Lastly, it is the significant investments in marketing. They do quite a big amount of investment on marketing and sales so as to compete and maximize profits and sales.

It is very common that every company has its own weaknesses. As Mercedes Benz is a big company, therefore it's quite obvious the business has barrier in communication within the organizations. Although the costs of Mercedes Benz vehicles are quite expensive but the advantages have overweighed the disadvantages, therefore there is the attractivity which leading the people willing to buy. However, high-end products have high cost of maintenance. Moreover, when it comes to online marketing, Mercedes Benz is weaker against some of other competitors, as BMW performs a better online marketing than Mercedes Benz does. Besides, Mercedes has high factors of production cost. Europe’s leading car makers are facing pressure on their profit-margin as the raw material costs are raising and also in first world countries labor costs are high. Apparently, Mercedes Benz faces many difficulties as well although it is a global brand company but they still can handle them properly.

Although the labor and productivity cost are high, but there are still many growing markets such as China, India, Brazil and Russia. Thus, the mentioned emerging economies provide an opportunity for Mercedes Benz to set up their factories in these countries. Furthermore, China will soon be the second largest car market in the world after the United States by 2013, with 8-10 percent of Global sales. The other opportunity is the change of social attitudes. The environment is heavily polluted and people are getting more concern of earth. People are aware of global warming and demand for more “green” product. Mercedes can make use of this factor and come out with hybrid cars in order to win over the buyers’ heart. Mercedes can also generate more funds by takeovers or merger. The takeover of Chrysler Corporation by Daimler-Benz in $38 billion stock deals made annual output of over £130 billion. More advertisement under marketing and sales can affect positively the organization’s performance.

The main threat of Mercedes Company is the tax problem. Many countries increase the tax for imported vehicles. This may result a decrease in sales globally. However, the latest worldwide economic is maintaining in good condition therefore it doesn’t affect the sales much...
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