MERCEDES BENZ

Mercedes Benz

Mercedes Benz

Introduction

Mercedes Benz is a part of the Daimler AG. Mercedes is very expensive car that can be afforded only by the rich upper class. This car is famous for its quality and durability. The reputation of the car is now formed and people prefer this among over others if they have the money to buy this car. Big industrialists have this car, which shows the reputation and the confidence they have on Mercedes. Gottlied Daimler and Karl Benz formed the company in 1886. They found a car that had class and was reliable (Proctor, 2000, pp. 15). The car is expensive, due to which the spare parts of the company are also expensive which means that the person who is buying this car should be able to afford the spare parts.

Mercedes Benz is the pioneer in a safety and technological advancements in the automobile industry. It has made many innovations that have proved to be beneficial for the company, as well as, the industry as many companies incorporated the change brought by Mercedes Benz because it helped them to build their cars and helped them maintain it.(Lancaster & Reynolds, 2005, pp. 22).

Organisation Analysis

Porter's Five Forces

Industry Assessment is a very important analysis when a company is looking to expand its business globally. The company should look at all the factors that can have an influence, either good or bad, on the company's operations and performance. It also provides companies with enough information on the market situation of the industry that it is entering. Porter's five forces are the best way to analyze an industry (Klein, 2007, pp. 28).

Market Competitors

There are many companies that are present in the automobile industry, but not all of them have the ability to compete with Mercedes Benz. Few companies such as Mercedes Benzand BMW have the ability to compete with them. These are the true competitors of Mercedes because they have the same price range and belong to the same class. The competition that Mercedes faces in the automobile industry is from these two companies. BMW is the main rival, but Mercedes has done well to keep itself dominant in the rivalry. It has kept an eye on the pricing strategy of the company, which has helped the company in making sure that the other company is not taking away its customer base. Mercedes has handled the rivalry quite well as the company has managed to reach record high sales over the past two years (Klein, 2007, pp. 30).

Bargaining power of suppliers

Mercedes Benz is a large operating unit, thus it enjoys close relation with all of its suppliers. This has benefitted the company the most because the suppliers of the company are very old and have been doing business with the company since many years. The suppliers of Mercedes Benz are equally dependent on the company as the company is dependent on them. This can be explained by the situation of the late nineties when the company had to negotiate the prices down and ...