Case Study #1 The Smart Car
Daimler is a multinational business that is branching out in many countries worldwide. Smart Cars are mainly manufactured at a plant in France. The smart car was first introduced to the United States in 2008. Daimler’s plan is to globally expand the smart car in every country it can. The Smart Car has already been successful in places such as Europe and North America. Daimler distributed Smart Cars over the Internet using the $99 reservation program. This helped the Smart Car expand globally; the $99 reservation program was a big hit in the United States.
The first major SmartUSA model is the Pure Model. The pure model has a starting price of $11,590. The second model is the Passion Coupe starting at $13,590. The next model is the Passion Cabriolet. The Cabriolet starts at $16,590. The fourth model, and the most unique, is the Electric Drive Model. For one to obtain a four-year lease on the Electric Drive it would cost $599 per month. The most important advantage of the Smart Car is its fuel efficiency. The smart car can go about 40 miles on the highway using just one gallon of premium gasoline. With the economy being down, this feature would save Americans an excessive amount of gas money. Another advantage of the Smart Car is that it is an accessible vehicle for city dwellers, and it makes parking in tight spots easy. The Smart Car does have disadvantages though. One important disadvantage is that the vehicle only has two seats, making the Smart Car out of range for most American families. Some other disadvantages include its highway performance. When on the highway, the Smart Car tends to become twitchy and unsettling. There is also no clutch on the Smart Car. Due to this when shifting gears, the driver must be very patient. Daimler uses the Smart Car to target environmentally concerned Americans who want to save cash and the planet. Daimler also tends to target city dwellers because of its small features. Before...
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