Daimler Ag - Analysis

Another cause for the decline in oil prices is caused by an increase in consumers purchasing more fuel efficient vehicles, such as hybrid or electric vehicles. In many countries today, especially in North America, there has been an increased demand for fuel efficient vehicles. This is evident in TV commercials which are advertising more and more vehicles that get 40 to 50 miles per gallon, and by the ever increasing commercials for electric vehicles. Consumers are tired of paying outrageous prices for oil and are demanding more for their money. As this demand continues to grow, the demand for oil will decrease.

Oil price increases are generally thought to increase inflation and reduce economic growth. In terms of inflation, oil prices directly affect the prices of goods made with petroleum products. As mentioned above, oil prices indirectly affect costs such as transportation, manufacturing, and heating. The increase in these costs can in turn affect the prices of a variety of goods and services, as producers may pass production costs on to consumers. The extent to which oil price increases lead to consumption price increases depends on how important oil is for the production of a given type of good or service.

The demand of gasoline has increased steadily over the last twenty years. In 1981 the U.S. averaged 6.5 million barrels of gasoline consumption per day. By comparison, in 2004 the U.S. averaged 9.2 million barrels of gasoline consumption per day. For most of this time period, gas prices stayed relatively the same. This is because the U.S. refineries increased their production to meet the demand and maintain the equilibrium price. Also during this same time period worldwide demand for crude oil increased 27%. Crude oil producers also increased their production to meet the demand keeping prices the same.

In the hyper competitive world of today’s mega corporations controlled by the sway of the stock market, giant old industrial era companies rule over the automobile market in the United States as well as large parts of the global automobile market. Companies such as General Motors, Chrysler, and Ford were at the center of it until the economic crisis now known as the Great Recession of the late 2000s. The whole market was declining in sales with General Motors and Chrysler taking the biggest hits while Ford only suffered decline comparable to foreign automakers’, Honda and Toyota, levels due to restructuring in prior years. However, the tipping point was edging closer to bankruptcy with General Motors and Chrysler that ultimately

The automotive industry globally involves the processes of manufacturing as well as sales of cars and other automobiles. The business of this industry is also inclusive of retailing activities like services; sale of spare parts, gas-station retails etc. by the year 2015, and the growth rate of the industry is expected to have a rise of 5.5% (Market Line, 2012). Moreover, as per International Organization of Motor Vehicle Manufacturers, this industry is the leading driver in terms of global economic progress and the largest employer. The changing trends and rising demand for technically advanced cars are giving out more opportunities. This essay is going to be a presentation on the analysis of the Volkswagen positioning strategy with respect to the Porters models of competitive strategies. This essay would be vital, as this analysis would help in revealing the company’s competitive and strategic position in the industry.

In 2009 the American auto industry was in a dire economic state. Chrysler was in Chapter 11, GM was on the brink of bankruptcy, and Ford’s future was at best uncertain. The demise of the U.S. auto industry would have a devastating impact on our national economy and specifically the economies of Michigan and Ohio.

In this report, I am going to evaluate the influence of different stakeholders exert at Mercedes Benz. The stakeholders I will be discussing is the owner of the business, customers who buy cars as they provide good quality of service, employees who help the business to perform well and making profits and the Government who support Mercedes Benz because they have been running successfully throughout the years so they want to invest money to further develop the business. On the other hand, I will make the following points in my report is by commenting on the level of influence that each stakeholder exerts on Mercedes Benz. I will also be referring to evidence from different sources for the comments that I make. I will state the strengths and the weaknesses on the influence of different stakeholders. Also, I will make recommendations on how Mercedes Benz can do to overcome the weaknesses which can affect their performance. At the end I will write a conclusion by summarising what I wrote in the report, which stakeholders have the most influence and which stakeholders have the least influence in Mercedes Benz.

The company that chose for this assignment is Mercedes-Benz. Mercedes-Benz is a old company. It established since almost one century ago. Mercedes-Benz is also a well-known automobile company on the world. It also have many competitors such as Audi, BMW, Volkswagen and so. In the following paragraphs will shows the Mercedes-Benz company background, country background, example of PESTEL, Porter’s 5 Forces, Strategic Recommendations and the conclusion.

As a company Daimler, has four core objectives: technology leadership and innovation, delighted customers, best teams (regarding diversity of gender, nationality and age), and profitable growth. Additionally, Daimler has outlined four strategic areas of growth which are strengthening the core business, growing in new markets, leading in green technologies, safety and driving ahead with connectivity and mobility concepts (Daimler, 2014). These could be interpreted as goals and it is because of these goals that Daimler celebrates great success.

The financial crisis starting in 2008 and the following recession hit hard the US auto sector. Traditional car makers had to realise that substantial changes were needed in order to maintain their strong position in the

A second point of consideration relating to the intensity of rivalry within the industry was the level of industry demand. “Demand declines when customers are leaving the marketplace or each customer is buying less” (Hill &Jones, 2012, p. 62). This was the case in 2009 in many developed nations due to the recession, which was marked by job loss, credit problems, and high gas prices that increased the demand for fuel-efficient vehicles or left consumers unable to purchase vehicles altogether. At the same time, growth was expanding in China and some other developing nations, which opened the doors for automobile companies in these countries to expand at home and

For example, the company's Mercedes-Benz cars segment holds a 5% share of the Western European market, 1.9% share of the US market, 1.4% of the Chinese market, and 0.9% in Japanese market. Similarly, Daimler Trucks hold 37.5% market share in Germany, 22.3% share of the Western European market, 25.2% share of the Brazilian Market, and 20.8% share of the Japanese market. Mercedes-Benz Vans holds 18% of the Western European market and 28.1% of the German market. Additionally, Daimler Buses has a market share of 27% in Western Europe, 50% market share in Germany, and 43.1% market share in Brazil. Strong brand recognition allows Daimler to charge premium prices than its competitors and thus register relatively higher margins. In addition, robust market share across different geographies gives Daimler a competitive advantage over its peers and helps it to maintain a niche in the market place. Extensive production and sales network Daimler has a diversified geographic presence with production facilities in 18 countries worldwide. Daimler operates a total of 66 production locations worldwide. The company owns 29 locations in Europe, 17 locations in the North American Free Trade Agreement (NAFTA) region, six locations in Latin America (excluding Mexico) region, three locations in Africa, and eight locations in Asia. The company is actively involved in manufacturing cars,

This report complies the analysis of the new strategy for Saab Automobile following its acquisition by Spyker Cars. The report attempts to assess this strategy and its potential success with an evaluation and analysis of the industry, strategy, macro environment, competitive advantage and sustainability of the competitive advantage. Various frameworks were applied in this report, including Porter’s 5 Forces, Strategic group analysis and VRIN analysis. Findings show, that Saab’s new strategy is based on some of the company’s strongest resources, the Brand, technology and expertise in design. This is particularly important as the

The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging

Volkswagen has set a bold goal of dethroning Toyota as the world’s largest auto maker. This goal includes significantly increasing the North American market share, as Volkswagen currently holds only 2.2 percent of the United States market. Volkswagen’s strategy includes cutting prices and tailoring its cars to better fit the American lifestyle and tastes. This includes increasing the size of its vehicles and modifying certain amenities, such as increasing the cup holder size to fit the larger sized beverages which Americans are known to drink. In order to become the world’s largest auto maker by 2018, Volkswagen’s management team has set a lofty goal of selling 800,000 vehicles per year