Professional Documents
Culture Documents
Legislation
Environment - The EU are bringing in a new
legislation that the average CO2 emissions
from new European cars must be cut to
130g/km by 2015.
Competition - legal restraints on competition
within the EU car industry are expected to
drop substantially over the next 5 years
Taxes and Duty- MOT, price increased. Road tax
directly linked to amount of emissions
Subsidies- The Government has today met the
automotive sector to discuss the help available to
the stricken industry. Commenting, David Frost,
Director General of the British Chambers of
Commerce (BCC), said
ECONOMIC
Recession/Boom. Due to the current economic
crisis Mercedes along with other car
manufacturers are finding it increasing
difficult to sell cars and many have even
closed plants.
Exchange Rate- Euro v £ Could make Mercedes
more expensive in the UK
SOCIAL
The social factors can be broken down according to the following
demographics:
Age
Gender
Income
Which age group are interested in the Mercedes company?
Mercedes products are mainly targeted at middle aged people. They
are not very popular with youngsters as the brand is expensive and
is very hard to get insurance on at such a young age.
What Social class are most likely to purchase Mercedes
cars ?
Due to their relative expense, Mercedes are targeted at people of
middle to high incomes. Unlike Vauxhall, for instance, Mercedes
doesn't offer different prices ranging from high to low so the
products don’t really appeal to consumers with a low income.
SOCIAL
Are males or females more popular with
the Mercedes company?
Mercedes products target are both males and
females . They design cars to fit both male and
female specifications.
http://www.youtube.com/watch?v=MgVB5HRrhtM
Mercedes also needs to focus on trend.
Mercedes is recognised as a quality, expensive,
corporate, upmarket and mature brand. So need
to make sure there update with fashion,
technology and social trends, such as the green
movement, to maintain its image. This could be
done through research and development .
A n o th e r fa cto r M e rce d e s n e e d s to th in k a b o u t is Advertising
.
Mercedes tend to promote there brand on Bill boards,
Business newspapers they also offer there own Mercedes
magazines
TECHNOLOGICAL
Safety- Advances in technologies such as
shatter-proof windscreens, air-bags, crumple
zones and collapsible steering columns have
made it possible to manufacture safer cars.
Safety sells
Plant Efficiency- New Production methods that
improve efficiency.
E- commerce
Gizmos
SWOT ANALYSIS
Strengths
Weaknesses
TH R EATS O F N E W EN TR A N TS
TH R E ATS O F N EW EN TR A N TS
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
C O M PE T IT IV E
S C O PE
Electronic Cars, Reliant Mercedes & Direct Competition
Robins etc.
NARRO W
C O M P E T IT IV E
A D V A N TA G E
STRATEGIC FIT
Strategic fit refers to how a firm adapts its business practices
to deal with changes in the external environment.
As the motor-vehicle market is currently in a slump, it is
essential that Mercedes-Benz react appropriately to
maintain their competitiveness in the market.
STRATEGIC FIT
Taking into account Mercedes' strengths, it is well equipped to deal with
the current changes in the external environment.
Additionally, the good resale value of their products will mean that
buyers will not be as worried about the depreciation value of the car
should circumstances force them to sale it on.
Lastly, the businesses good relationship with the government and EU will
mean that they could rely on tax reductions and stimulus packages
should production be heavily affected by the motor vehicle crisis.
On the downside, the price will still be a hindrance when trying to attract
new custom, especially given the hardship experienced when trying to
obtain finance from creditors.
PRODUCT SUGGESTION
We would suggest that Mercedes-Benz
considered developing a product that would
be suited to today's economic climate and
social trends.
In fla tio n
N o t exp e n sive ra n g e
R e d u ce C o sts
In te re st ra te s
S m a lle r C a r
Le ss S a vin g s