SWOT and PEST analysis for Mercedes-Benz

Edison Ng y12 SWOT and PEST analysis for Mercedes-Benz Introduction Mercedes Benz, a member of the

DaimlerChrysler Group, one of the biggest automobile manufacturers in the world. With three great brands,

first-class products and highly qualified employees, the Mercedes Car Group plays an essential role in the

success of DaimlerChrysler. It is the world market leader in the luxury segment. Mercedes-Benz stands for

modern, innovative automobiles, for quality, safety and comfort .Mercedes-Benz enjoys an excellent

reputation, particularly in the area of safety technology. Many pioneering technical innovations that are

standard automotive features today were first seen in a Mercedes-Benz car.

strength

SWOY Analysis To begin with, I will look for the main strength that the company had. As we know,

Mercedes-Benz has been a well known business for a very long time; therefore, the strengths would be a lot

than I expected. The obvious strength is -High class, comfortable and safety Below are...

...as well

. Opportunities for Mercedes-Benz * Joint venture. * Improving safety, comfort, and sustainable mobility.

* Providing fascinated vehicles for customers by the supportive of DaimlerChrysler Group * Professional

sport sponsorship Before we go through the opportunities of the business, we have to take seriously on the

threats at first. Apparently, Mercedes Benz is a global brand company and yet they are facing a lot of

difficulties as well. Although they have a lot of difficulties, they still can handle them properly.

Threats

for Mercedes * A tax increase for importing vehicles. * Less educated employees in China, but also very

expensive to hire employees in Europe. * Competitors that the Mercedes company had 1. BMW(the most

direct competitor) .Luxury small car market with less expensive sub-compact model 2. Cadillac (GM)-

Concentric diversification 3. Lincoln (Ford)-Attract satisfied customers with improved products 4. Lexus

(Toyota)- Sticker prices considerably below other luxury cars

Weakness

It is very common that every company has its own weaknesses. As Mercedes Company is a large

company, therefore it's quite obvious the business has the deficiency of communication in the organizations.

Although the costs are very high, the advantages have overweighed the disadvantages, thus there is the

attractiveness which leading the people willing to buy. Below are the weaknesses for Mercedes Benz: * Lack
of communication between the heads of office and the staff due to the method of communication they use. *

The costs of vehicles are much more higher than other vehicles in market which the majority of people can't

afford * Hardly retrieving the confidence of the customers if the business goes wrong only once because of

high expectation or reputation of company.

PEST analysis Political - the cars and trucks are powered by engines running on fossil fuels i.e. gasoline and

diesels, emitting carbon gases that pollute the environment, the green house effect - the governments

within the European Community have introduced various legislations to minimize the emission of such gases

forcing the manufacturers to develop less polluting engines, Euro 4 - automobiles are also major causes of

road accidents hence, government legislations have been introduced to improve safety to car drivers as well

as the users of public transportation Economic The Mercedes-Benz has manufacturing plants in many

countries including Germany, the United States, Brazil, South Africa and many more. Its factories employ

ten of thousands of people to make cars and distribute them globally. The immense size of its operations

and its global presence also means that it also contribute significant amount to the various government in

taxes and duties. It also contributes a lot to the local economy through local out-sourcing of materials and

parts. With such huge operations, a lot of money in various currencies, US Dollar, Euro, Japanese Yen, is

involved and a lot of banks are partners of Mercedes-Benz, providing banking services including loans and

foreign currencies support, earning these banks interest income and foreign exchange service fees and

gains. Social Mercedes cars are expensive and considered luxury cars by most people. Owning a Mercedes-

Benz is synonymous with being rich and successful. Although most brands of cars, be they Japanese,

European or American made, are of the top quality and with the most trendy style, Mercedes-Benz has

successfully promoted itself to be the best car. This is achieved through a lot of media promotions involving

popular personalities like famous sportsmen, movie stars and top fashion models. Participation in the

Formula 1 races also give wide television coverage to the brand. Due to the success and effectiveness of

these promotions, even a 5 year old kid knows that the 3-point star Mercedes-Benz logo represents quality

and high price. Technological There are many large and well established automobile manufacturers in the

world including, BMW and Audi from Germany, General Motors and Ford from the United States and Toyota

and Honda from Japan, to name a few. Moreover, many countries also have car manufacturing capabilities

through their own development or through technology transfers from the established manufacturers. Hence,

the automobile industry is very competitive. Manufacturers keep introducing new models, with the latest

design and technology to increase sales. Huge sum of monies are spent on research and development to

come up with a better car to meet customers demand, taste and to be ahead of their competitors. In recent

years, a lot of monies have been spent to develop new engines to meet low pollutant emissions regulations
introduced by governments. A lot of computer technologies have also been introduced to improve

performance and safety.

Conclusion In my opinion, the styling of the Mercedes-Benz is its most distinctive feature, and is more

enduring than the styles of other cars. American and Japanese cars, for example, become outdated within a

couple of years after their introduction, but Mercedes styling remains consistent and attractive. The interior

styling of a Mercedes is particularly impressive. Its richly padded seats and dashboard and its precision

instrumentation give drivers a feeling of security and luxury. Mercedes-Benz places driver and passenger

comfort high on its list of priorities. The Mercedes-Benz engine is almost as legendary as its styling.

Mercedes was a pioneer of diesel technology, and its engines are stronger in horsepower and last longer

than those in other types of cars. After a few years, the Mercedes reveals another advantage that confirms

its outstanding reputation. In extreme conditions such as the Middle East or the American Northeast, many

American cars become badly rusted and sound as if they are falling apart after just a couple of years. The

construction of the Mercedes body and its ...