Mercedes: A Competitive Advantages And Business Factors

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A Competitive Advantage is a peculiarity for an organization between it's competitors . It's achieved either by lowering prices or by greatening the value of the product or by offering luxury service and benefits to cope with high prices . Competitive advantage is the point of power for any organization as it is the point from which an organization can maximize it's profits if it's been planned for it well . The more prospective the competitive advantage the more it becomes hard for it's advantage to be neutralized . Question One : The industry of Automotive is considered one of the industries that needs high Capital and needs a large workforce or a large amount of work in relation to output. It's costs goes mainly on it's materials , …show more content…

This prestige added somehow an advantage to the company . Mercedes always relied on forecasting statically the market it's operating in. It uses modern informational & comminucational technology to control the process of customer's transaction using this information in making decisions . The payback time, net present esteem and return rate computations found in the financial statement of Mercedes won't apportion assets to extend until the point where it becomes widely investigated budgetary data information. Mercedes doesn't only seek for horse power & top speed , it also seeks for taking care of engineering and designing parts . It's a joyful thing to ride a fast car that can go from 0 to 70 in 50 seconds but your car won't be a good performer unless all it's parts are taking a good care in their details . Mercedes is a power that's always on demand ; a unique performance , excellence in rides , comfy design , economical fuel consumption & also safety …show more content…

Another strategy is Being defensive ; Defensive strategies are relatively close to Differentiation & Cost leadership . This method helps in keeping all the advantages in one place once they are attained . This strategy is considered as an actual one as it limit competitors ability to offer a business opposition . One more strategy is Alliances ; There is a very small line between alliances and collusion . So it should be taken a good care from crossing this line . Collusion is when two organizations within the same industry work together in the same field mostly in order to make control on prices . Alliances is like joint ventures of the business . It's used in pooling the resources also in the detriment of different contenders not in the partnership . Another way is focusing on the benefit ; it should always focus on the features and the benefits of every single part in the car . Be always aware of new trends that may affect on the profits for example ; new technology as it should always cope with the latest technology found in market

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