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Mercedes Benz

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Juliane Winkler

on 22 January 2014

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Transcript of Mercedes Benz

The Business Strategy Diamond
The five Forces
The Strategic Positioning Model
Cost Leadership Differentiation
Mercedes Benz
Economic Logic
Staging & Placing
Supplier Power
Threat of new Entrance
Buyer Power
Threat of Substitutes
Short Distance:
Bus and transit system
Long distance:
Rail system
financing, e.g. people get easily a loan
warranty arrangements:
low gas prices
Volkswagen Golf
Audi A3
BMW 1 Series
Vision and Mission
•The audacity to reject compromise
•The instinct to protect what matters
•The commitment to honor a legacy
•The vision to consider every detail
•The foresight to take responsibility
•The ingenuity to outperform expectations

Goals and Ovjectives
To approach a new target group by introducing a smaller and less expensive car
Satisfy a different market segment to realize the growth strategy
Implementation Levers and Strategic Leadership
The new A- Class
The Strategic Management Process
Strategic Analysis
emotive in design: low seating, sporty, dynamic, agile
powerful engines
extremely efficient with emissions
reasonable price
When: it was unveiled at the 2012 Geneva Motor Show; in Dealership late 2013
"We expect a conquest rate of 50% and that's necessary to put a growing strategy in place." (Thomas Weber)
1997: Market launch of the A-Class
2004: Second generation
More than 1,000,000 cars were sold
2012: Third generation
Price: 24,335.50 EURO, 36,100 CAD$, ¥2,840,000
Cost Leadership
A 160 CDI BlueEFFICIENCY consumes just 4.5 litres of fuel per 100 km
The engine switches off automatically when idling
9 per cent lower fuel consumption in city traffic
The A-Class is the first compact car to receive an environmental certificate
Detailed recycling concept
No waste policy
Use of renewable materials
Political & Legal
Emerging markets -> people get wealthier -> can buy a Mercedes
Wages rises -> people have more money -> buy a Mercedes
New innovation by using Apple products integrated in the car
Flashing brake lights warn cars travelling behind
Ultrasound and electric steering help with parking
The car is made for small families
It has four doors
focused on younger owners
Due to the low price people from the lower middle class can effort to buy a Mercedes
Mercedes as a status symbol
Integrated Position
South Africa, India, Europe (Germany), Japan, Korea, Turkey, Mexico
They don`t sell it in the US and Canada
Mercedes uses its already existing distribution channels
They want to approach new costumers (young people, small families) by introducing the A-class
High start up costs to enter the car manufacturing
Therefore low competition
Many suppliers: Break system, electrical system, cooling system, steal suppliers
steal from China (low labor and production costs)
private consumers, who buys cars for themselves
rental companies, who offer cars for leasing
Therefore Mercedes needs to be customer orientated
External (PESTEL)
Full transcript