CONTENT

Introduction History Business Alliance Subsidiaries Quality Ranking Product Offerings Cars Trucks McLaren Bicycles Formula 1 SWOT Analysis Porters 5 Forces Analysis Porters Generic Strategy CSR Awards Market Share Mercedes vs. BMW

Introduction
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is currently a division of its parent company, Daimler AG Mercedes-Benz is one of the most well-known and established automotive brands in the world, and is also the world's oldest automotive brand still in existence today.

History
Mercedes-Benz has its origins in Karl Benz's creation of the first petrol-powered car, the Benz Patent Motorwagen, patented in January 1886 The Mercedes automobile was first marketed in 1901 by Daimler Motoren Gesellschaft. Following the merger of Karl Benz's and Gottlieb Daimler's companies into the Daimler-Benz company.

Business alliances
In 1958, Mercedes-Benz entered into a distribution agreement with the Studebaker-Packard Corporation. Studebaker would allow Mercedes-Benz access to its dealer network in the U.S. and in return, receive compensation for each car sold. Studebaker also was permitted to use the German automaker's name in its advertisements, which stressed Studebaker's quality over quantity.

Subsidiaries
Mercedes-Benz AMG became a majority owned division of Mercedes-Benz in 1998.
The company was integrated into DaimlerChrysler in 1999 and became Mercedes-Benz AMG beginning on 1 January 1999.

Quality ranking
Since its inception, Mercedes-Benz had maintained a reputation for its quality and durability. In 2007, Mercedes showed dramatic improvement by climbing from 25th to 5th place, surpassing quality leader Toyota For 2008, Mercedes-Benz's initial quality rating improved by yet another mark, now in fourth place. On top of this accolade, it also received the Platinum Plant Quality Award for its Mercedes Sindelfingen, Germany assembly plant.

Product offerings
Mercedes-Benz has a full range of passenger, light commercial and heavy commercial equipment.
Production is on a global basis. The Smart marquee of city cars has also been part of the Mercedes-Benz Group since 1994.

Cars
A-Class - subcompact B-Class - people carrier C-Class - sedan (saloon), sports coup (CLC), and estate CL-Class - coup CLK-Class - coup, convertible GLK-Class - SUV M-Class - SUV R-Class - crossover minivan

S-Class - sedan (saloon)

SLK-Class - roadster SLR McLaren - hardtop grand tourer SLS AMG - luxury grand tourer

CLS-Class - 4 door coup

Trucks
Mercedes-Benz also produces buses, mainly for Europe and Asia. Mercedes-Benz produces a range of vans. The first factory to be built outside Germany after WWII was in Argentina. It originally built trucks, many of which were modified independently to buses, popularly named Colectivo. Today, it builds buses, trucks and the Sprinter van.

MERCEDES MCLAREN SLR

McLaren
Mercedes-Benz has also produced a limitedproduction sports car with McLaren Cars An extension of the collaboration by which Mercedes engines are used by the Team McLaren-Mercedes Formula One racing team, which is part owned by Mercedes.

SLR has a maximum speed of 337 kilometers per hour and costs US$500,000

Bicycles
Mercedes-Benz Accessories GmbH introduced 3 new bicycles in 2005. 1. 2. 3. 4. 5. 6. List of bicycles: Mercedes-Benz Automatic Bike Mercedes-Benz Carbon Bike Mercedes-Benz Fitness Bike Mercedes-Benz Hybrid Bike Mercedes-Benz Mountain Bike Mercedes-Benz Street Bike

Formula 1
In 2009, Ross Brawn's newly conceived Formula One team, Brawn GP used Mercedes engines to help win the constructor's championship Jenson Button to become champion in the F1 drivers' championship. At the end of the season, Mercedes-Benz sold back its 40% stake in McLaren to the McLaren Group and bought 70% of the Brawn GP. Brawn GP was renamed Mercedes GP for the 2010 season

SWOT ANALYSIS

Strengths Strong brand name Owners club Successful F1 team Good Resale Value Good relationship with the government

Weaknesses
Price

SWOT ANALYSIS

Opportunities Development of new models Environmentally friendly cars

Threats The current economic crisis Strong competitors New entrants into the market

SWOT ANALYSIS

Strengths
BMW independently owned Product development on the the core platforms, keep its various brands distinct. Focus on being the best Extensive distribution channels A hydrogen combustion engine offering

Weaknesses Fails to appeal wider range due to affordability of car Maintenance cost of the car service is expensive Competitors had exclusive dealerships Segmentation Upper level of society

SWOT ANALYSIS

Opportunities Global expansion into new markets Huge demand for smaller cars in the market Asia is the key market for BMW There is a market for luxury/performance cars Leverage brand image Dealer expansion Growing market segments

Threats Oil prices going higher and higher Governmental policies changing Environmental/Social issues Competitors

SWOT ANALYSIS
Strengths Weaknesses

Superior engine and excellent driving performance Sturdy chassis design and security of high specification Brand of high-profile Stillness A good image of Germany manufacturing

Less service Avant-grade design (advance guard) the scope of customers The higher price parts and maintainenance gas guzzling

SWOT ANALYSIS

Opportunities

Threats

Environmental concept car Provide Top Service Promotion of Affordable of Audi Car Donation

Mercedes Benz Customization service Saturated market Can be replaced by other factors : 1.Traffic jam 2.Transportation promotion 3.Bicycle & Motorcycle 4.Fluctuating oil price Economic depression

PORTER'S 5-FORCES ANALYSIS

THREATS OF NEW ENTRANTS

BARGAINING POWERS OF SUPPLIERS

RIVALRY AMONG FIRMS

BARGAINING POWERS OF BUYERS

THREATS OF NEW ENTRANTS

RIVALRY AMONG FIRMS

The rivalry among firms in the same market as Mercedes-Benz is highly intense. The main competitors within this segment include:
BMW AUDI JAGUAR ASTON MARTIN ALFA ROMEO

Rivalry has led to firms producing similar range of vehicles, as well as expanding into new products or services e.g. financial services, alcoholic products etc.

THREAT OF NEW ENTRANTS

Segment is at low risk to the threat of new entrants. This could be down to the following reasons:
PRESTIGE

MATURE/SATURATING MARKET

SET-UP COSTS

CUSTOMER BASE

THREAT OF SUBSTITUTES
Mercedes-Benz has numerous substitutes that it has to be weary of. These include:
ALTERNATIVE TRANSPORT: this includes means such as buses, trains, motorbikes and planes. ALTERNATIVE PRESTIGE PURCHASES: because Mercedes-Benz vehicles are considered luxury products, they also have to be cautious of other prestigious products that consumers could buy instead of fancy cars. These include: Designer Clothing Expensive/Collectors Furniture Holidays Luxury Homes Art e.g. Paintings, Sculptures etc. Jewellery Boats/Yachts

BARGAINING POWER OF SUPPLIERS

The bargaining power of suppliers is influenced by numerous factors. These include the position of rival suppliers, the quality of goods and services supplied; the demand for goods and services; and the supply of goods and services.

Mercedes-Benzs suppliers provide them with an array of raw materials required in car manufacturing, including metals, leather, electronics, paints and rubber. Also, since Mercedes-Benz prides its products on their quality, suppliers could increase their bargaining power through emphasizing the superiority of their goods.

BARGAINING POWER OF BUYERS

Mercedes-Benz deals with two types of consumers, each with their own bargaining stance:
COMMERCIAL INDIVIDUAL

Porters generic strategy

PORTERS GENERIC STRATEGIES

These are the three strategies that businesses apply to achieve and maintain their competitive advantage through 1. cost leadership 2. differentiation 3. focus When applied to Mercedes-Benzs target market, it shows the positioning of both their direct and indirect competition.

MERCEDES GENERIC STRATEGY

Through utilising Porter's generic strategy, we have been able to identify that Mercedes-Benz's generic strategy targets the following market:
NARROW MARKET - Mercedes' consumers fall within the minority of the market. DIFFERENTIATION FOCUS - Mercedes' strategy to distinguish them from rivals is one of differentiation, through providing both a luxurious vehicle, as well as one that is up to par with the latest performance figures.

MERCEDES-BENZ GENERIC STRATEGY

COST
Cheap & 2nd Hand Cars

DIFFERENTIATION
Classic/Rare Vehicles & Indirect Competition

BROAD

NARROW

Electronic Cars, Reliant Robins etc.

Mercedes & Direct Competition

COMPETITIVE ADVANTAGE

COMPETITIVE SCOPE

Corporate Social Responsibility

EMC CSR Program Annual Road Safety Campaign in Abu Dhabi & Al Ain 'Green Legacy' Music classrooms Medicine Training up-and-coming mechatronics engineers

AWARDS
Mercedes-Benz SLS AMG wins top design award in gold Most sporty cars of 2010" (sport auto) "red dot design award" "iF product design award 2010" "Design Award 2010" (Auto Bild) Plus X Award "Golden Steering Wheel 2009" (Bild am Sonntag and Auto Bild)

 "The best cars", super-sports category (auto motor und sport) "Auto Trophy 2009" and "Design Trophy" (Auto Zeitung) "TOPauto 2010" (Motor-Informations-Dienst) "Best IAA New Product 2009 (AutoScout24) "GT Car of the Year" (Top Gear, GB) Internet Auto Award 2010 (AutoScout24) "Golden Classic Steering Wheel- Classic of the Future" (AUTO BILD KLASSIK)

Market share
THE BIGGEST QUESTION- Mercedes or BMW?

Customer Satisfaction

BMW

2007 2008 2009

Daimler AG Nissan

GM

Honda BMW

% of population interested in owning a Mercedes 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Men Women Everyone

-4%