Marketing Report: Analyzing Mercedes Benz's Expansion in Asian Markets

This report analyzes the potential for Mercedes Benz to expand its business in Asian markets. It utilizes a PESTLE analysis to evaluate political, economic, social, technological, legal, and environmental factors influencing the company's success. The analysis highlights opportunities such as growing economies and increasing consumer interest in luxury goods, as well as potential threats like political regulations and economic instability. The report suggests that Mercedes Benz should carefully consider these factors and formulate a comprehensive plan before expanding into Asia. The report also references several academic sources to support its findings, providing a well-researched overview of the market conditions and strategic recommendations for Mercedes Benz's expansion plans. The conclusion emphasizes the importance of market knowledge and strategic planning for long-term sustainability and profitability.

Marketing Fundamental
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Current global market in continuously creating opportunities for the companies and it is very
important or all the organisation to have information of such type of conditions so that marketers
can make strategic decisions to expand their business. Mercedes Benz is one of the leading car in
the world which is known famous for its unique design and quality. The CEO of the organisation
is has identified Asa as a new growth opportunity and also want to analyze the global market
conditions to analyze such factors that may influence sales of Mercedes Benz. PESTLE analysis
is a good tool that may help to identify the market conditions of Asia (is a good tool that may
help to identify the market conditions of Asia (Andreasen, 2012). It is a combination of six
different factors that are political, economic, social, technological, legal, environmental.
Political factors are mainly related to political parties of a country and their rules and
regulations. Asian countries are highly controlled by political parties and they are giving
opportunity to new companies to expand their business in their country as they want to grow the
economy. This is a good opportunity for Mercedes Benz as it may expand its business there and
may get good growth as all the countries are developing countries hence there is a possibility that
the organization will score a high growth there. The company may face threat also if the political
parties impose any new rule for the new companies who are going to expand their business in
Asian countries and Mercedes Benz is not able to adopt that rule than it may create problem for
the company will also result negatively.
Economic factors are related to inflation or deflation rates. Both the rates change frequently and
affect the purchasing power of customers. Economy of Asian countries is continuously growing
as it is a good opportunity for Mercedes Benz to expand its business there. If the inflation rate
increases than it may affect business of the organization as the cars are very expansive and
purchasing power of customers will decrease and they will not be able to buy expensive cars
(Busch, 2015). There is a good opportunity and a big risk for the company in Asian countries as
higher price of cars may create problem in future. This may result negative and organization
have to face a huge loss in future.
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Social factors include age, education level, gender, buying behavior, taste and preference
of customers. Asian public is very much interested in cars and other types of luxury things that
may help to increase their standard of living. It is a good opportunity for Mercedes Benz because
this provides best quality cars to the public and all the cars are luxury which will definitely grab
attention of customers. Organization may acquire good profits there and get a huge success as
there are various opportunities for growth. If the cars are not according to the demand and
preferences of customers than they will not show interest in them and this will create issues for
Mercedes Benz and result in higher loss.
Technological factors depend upon the latest technology which that attracts large number of
customers and help those companies who are using innovate techniques and providing good
products or services to the general public. All the Asian countries are becoming friendly with
technology. If Mercedes Benz use a new technique in its cars and then launch them in Asian
countries than it may help the organization to expand its business more effectively and get good
growth there. Organization may also have to face a threat when the technology used by Mercedes
Benz is not attractive and Asian people are not aware of such type of technology. This will lead
the organization toward a big failure (McDaniel and Gates, 2013).
Legal factors are related to the government and legal authorities who implement different
types of policies and regulation in a country. Tax rates and other economic factors are decided by
them. Government of Asian countries are very much concerned about the growth of their country
hence they are allowing foreign companies to expand their business and help them to increase
their economical strength. This is a good chance for Mercedes Benz and this will help to expand
its business with higher possibility of profits and growth in Asian countries. If Mercedes Benz
will not be able to sale its cars in Asian countries than it may result adversely and organization
have to face higher losses.
Environmental factors include different types of environment protection rules that are
made by regulatory authorities of the countries for the purpose of saving nature. Mercedes Benz
is highly involved in environment protection activities and also a part of NGO and this helps the
organization to set a positive image in the market. Government of Asian countries are very much
concerned about the environment and if the organization is not able to follow all the rules than
this may affect the organization’s growth and also reduce profitability.
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All the above factors depict that there are various growth opportunities for Mercedes
Benz in Asia and organization may get good success there. The CEO is suggested to expand the
business in Asia so that the market share of Mercedes Benz get increased. Political and legal
parties support the new businesses who are launching in the Asia so that their economy can grow
faster. This step of Mercedes Benz will result positively if the organization have appropriate
knowledge of market and other conditions so that a proper plan can be formulated and a new
plant can be launched in Asia (McLean, 2012). Mercedes Benz can acquire higher profitability
and long term sustainability in Asia as it is a good opportunity for the organization to expand
business and get higher profits.
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REFERENCES
Books and Journals:
McDaniel, C., & Gates, R. (2013). Marketing research. Singapore.
Busch, O. (Ed.). (2015). Programmatic advertising: The successful transformation to automated,
data-driven marketing in real-time. Springer.
McLean, F. (2012). Marketing the museum. Routledge.
Andreasen, A. R. (2012). Rethinking the relationship between social/nonprofit marketing and
commercial marketing. Journal of Public Policy & Marketing, 31(1), 36-41.
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