Global Corporate Strategy and SWOT Analysis of Mercedes-Benz (Essay Sample)

Global Corporate Strategy Mercedes-Benz
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Table of Contents TOC \o "1-3" \h \z \u Executive Summary: PAGEREF _Toc69032225 \h 3Mercedes-Benz Introduction PAGEREF _Toc69032226 \h 5Overview PAGEREF _Toc69032227 \h 5Mercedes-Benz SWOT Analysis PAGEREF _Toc69032228 \h 6External Environment Analysis PAGEREF _Toc69032229 \h 8PESTLE Analysis PAGEREF _Toc69032230 \h 8Porter’s Five Forces Analysis PAGEREF _Toc69032231 \h 14Internal Environment Analysis PAGEREF _Toc69032232 \h 18VRIO Analysis PAGEREF _Toc69032233 \h 18Strategy Analysis PAGEREF _Toc69032234 \h 20Business strategy PAGEREF _Toc69032235 \h 20Corporate Strategy PAGEREF _Toc69032236 \h 21Recommendations: PAGEREF _Toc69032237 \h 21Conclusion PAGEREF _Toc69032238 \h 22
Executive Summary:
The following text aims to provide critical analysis of Mercedes-Benz, a company under the Daimler group in the car industry. The first section introduces the company’s history and current status. The current situation has been analysed through SWOT analysis where the organization entails the following strengthens, strong brand value, financial capabilities, innovation leader, funds for research and development. Some of the weaknesses found include; a stunted distribution channel, conflicting goals with the mother company, high maintenance cost of their cars, and stiff competition. Opportunities presented; using the strong brand name to attract new consumers, an opportunity of tapping new markets, new technologies, and strategic alliances. Threats include government regulations, economic instability, fuel volatility, unstable exchange rate, and increasing cost of raw materials. Part two unveils the Mercedes-Benz macro-environment impact the five forces based on the above opportunities and threats. Section three provides Mercedes-Benz VRIO Analysis and the ability of the organization to maintain a competitive advantage. It was observed that distribution channel and financial resources to be Mercedes-Benz’s competitive advantage while patent is observed to be an unused competitive advantage with employees’ resources being a temporary competitive advantage. Research and development and competitive parity are competitive disadvantages for Mercedes-Benz. Business strategy includes Mercedes-Benz unveiling a new business strategy that entails targeting on becoming world leaders in electric cars and cars software and perusing profitable growth in the luxury segment. While for the corporate strategy, Mercedes-Benz observes that it will focus fully on the firm's future. The future focus has been limited to where the firm will be in 20 years based on the trends they can identify with, what to offer their consumers, and allowing their employees to be innovative. The last section offers recommendations where Mercedes-Benz ought to collaborate with suppliers to maintain a long-term relationship ensuring better prices. Utilize the funds set aside for research and development and study the current market to predict the future
Global Corporate Strategy Mercedes-Benz
Mercedes-Benz Introduction
One the luxury car manufacturer, Mercedes-Benz, was established in 1926 with its headquarters in Germany. The company is responsible for the world’s business of Mercedes-Benz vans and Mercedes-Benz cars and has employed over 17 000 employees globally. The organization focuses on producing, developing, and selling passenger vans, cars, and vehicle-related services. It is observed to one of the leading manufactures of luxury vehicles. In 2020, Mercedes-Benz sold over 375 000 vans and nearly 2.1 million cars. Mercedes has maintained its leading sales position compared to its competitors since 2016. It has a two business segment and continues to grow globally, expanding its production network creating over 35 manufacturing sites in four continents. Mercedes-Benz aims to become a global leader in matters concerning electric vehicles and software. The product portfolio includes Mercedes-Maybach, Mercedes-Benz brands with sub-brands of the AMG, G-Class, smart brand, and Mercedes-EQ (MBA Skool Team, 2012).
Overview
Mercedes-Benz Profile
Parent company: Daimler
Category SUVs, Sedans
Sector Automobiles
Slogan best or nothing:
Mercedes-Benz Company Logo
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Mercedes-Benz's main goal is to build the world’s most desirable cars (Phongpetra, & Johri, 2011). The organization pillar is developed based on six pillars. At the foundation is to become the number one electric car producer and embrace digitalization. The pillars include; thinking and acting like a luxury brand, focusing on profitable growth, expanding customer base through sub-brands, embracing consumers and growing the recurrent revenues, leading in the electric drive and software and improving industrial footprint, and lowering the cost base (MBA Skool Team, 2012).
Mercedes-Benz SWOT Analysis
Mercedes-Benz strengths
* Strong brand value
* financial capabilities- they can easily invest in branding and international manufacturing
* innovation leader- Mercedes is observed to be the first company that introduced anti-lock brakes, fuel injection, and the popular diesel engine
* it has allocated more than $12 billion to research and development.
* Has a strong presence in the sports world through sponsoring and participation too as McLaren Mercedes
* Has manufacturing and assembling plants in four continents
Weakness
* Stiff competition,