Case Study Of Daimlerchrysler

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DaimlerChrysler’s brand strategy was flawed. The new DaimlerChrysler cannibalized its own product line, as the Mercedes M class collided with the Jeep Grand Cherokee, affecting one of Chrysler’s most profitable product lines. Chrysler was supposed to pick up small-car segment, but Chrysler brand didn’t fit the small-car image.
In DaimlerChrysler, there were problems in integrating the operations due to different drive concepts. Therefore, component sharing was limited, which significantly restricted the benefit of economies of scale that a merger could bring on.
3.3. Chrysler’s consequences after merging with Daimler-Benz
Daimler merged with Chrysler when Chrysler had walked to the other side of the slope glory. In 1997, Chrysler's net profit was 2.8 billion
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The first lesson drawn from the Airflow is that the public does not accept things that are too strange or belong to a far future. However, in the next two decades, the company continually pursued conservative and out-of-fashion designs. Chrysler has had to pay by more than half of the market share loss in 1950s.
Chrysler is seriously suffered when Keller and the company's best engineers left for space project of the US government. In general, the corporation has had two golden period from 1983 to 1988 and from 1993 to 2000, but all heroes that built that glory also left when Daimler-Benz appeared.
In theory, the amalgamation of Chrysler and Daimler-Benz can bring on a considerable competitive advantage, especially in term of the economy of scale. Nevertheless, the synergy savings can only be achieved if two companies can operate the business and produce vehicles more efficiently than when they were apart. In the case of Daimler-Benz and Chrysler, many conflicts and clashes have made the integrated management impossible. Looking back, it seemed to be an unlikely marriage at the very first
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