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Transcript of Daimler Chrysler
WAS THE CHRYSLER DEMERGER INEVITABLE?
IDENTIFY ELEMENTS OF A FUTURE STRATEGY FOR MERCEDES WITHOUT CHRYSLER? Questions
Difficult communication inside the company, due to the culture difference.
They are behind in the research of Hybrid cars.
They wont be able to create a brand identity. Daimler-Chrysler merge SWOT
Combines to different company cultures .
Daimler Chrysler brand is unknown and difficult to define.
Its hard to have a vision and give direction as the company is bigger . Daimler-Chrysler merge SWOT The merger combines two strong company's .
Billions on research and development.
Increases market share
Daimler in the USA/ Chrysler in Germany
Daimler's outstanding reputation
Chrysler very cost effective Daimler-Chrysler merge SWOT Daimler’s Motives
Their goal to become a global player with interests outside its traditional Western European base, led it to merge with Chrysler Motor Cooperation.
To gain competence in product technology and quality.
To expand beyond the North American market.
In combining these to company’s you had the potential of gaining high volumes, participating in all segments, innovation, adaptability and technology and quality excellence.
source: School of Economics and Management, Lund University Motive for the Merge Daimler
Founded in 1926 by Gottlieb Daimler and Carl Benz.
The Daimler Group is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles with a global reach. INTRODUCTION Introduction
Motive for the Merge
S.W.O.T of the Daimler Chrysler Merge
Porters Generic Strategies
Was a de-merger inevitable?
Future for Daimler (T.O.W.S)
Conclusion Content MICHAEL GOITOM
2924686 DAIMLER CHRYSLER CASE STUDY Porters Generic strategies Broad Narrow Cost Differentiation ANALYZE DAIMLER’S STRATEGIC POSITION AT THE END OF THE CASE?
Company's should be able to expand market, especially Asia.
Innovation would lead to new products on the market.
Creating a new brand identity.
Innovative car ideas, like hybrid. Daimler-Chrysler merge SWOT Strengths Weakness Opportunity's Threats HAPESLAGH &JEMISON (1991) WAS THE CHRYSLER DEMERGER INEVITABLE? Needed for lengthy planning
Target research (possible no target available?)
Due diligence Mergers and Acquisition Management Preservation Mode – Keep businesses separate-low synergy-high autonomy- preserves existing cultures.
Absorption Mode- Acquirer dominates and absorbs acquired business into its own operating system & dominant culture.
Haspelagh & Jemison (1991) Integration Models Poor pre-acquisition planning
Poor partner selection
Poor post merger integration Future Strategy for Daimler Threats Recession /credit crunch
Competition in the Luxury segment (BMW and AUDI)
Volvo, Jaguar, Lexus,
Infinity in Europe
BMW in Japan
Renault/Volvo co-operation Opportunities Demand for luxury cars
Eastern Europe, especially Russia
Expand the Maybach branch ( Asia /Dubai )
Develop and Invest in R&D for hybrid cars
Enter the Asian market Weaknesses Long cycle to develop a new model
Relatively weak position in Japan Strenghts Luxury car image/brand entity
New car models(Mercedes C-class)
Engineering and technology
1. Develop new models (using high tech) and charge premium prices
2. Use financial resources to acquire
other companies or increase production capacity
3. Develop new models to compete
especially in Europe
4. Reduce costs through flexible manufacturing
6. Form strategic alliance with Mitsubishi to penetrate the Japanese market
fierce competition from Japanese carmakers in the luxury market.
Using T.O.W.S Matrix, mangers can help show Mercedes leadership in the motor industry .
These choices must be made in the light of risks and in line with the vision of the CEO,
Daimler-Benz must prepare now for the competitive global car market. Conclusion 5. Manufacture parts in Eastern
Founded by Walter P. Chrysler in 1925.
Well established and firmly positioned organization in the US Market.
Well know for its product design, process design and marketing