Mercedes Benz PESTLE Analysis

Mercedes benz in new zealand

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Global business environment is all the external and internal forces of the country that
influence the function and decision making process and resources and capabilities of the
organisation (Hamilton and Webster, 2018). Report is based on the Mercedes benz company,
which is the largest name among the luxury auto mobile brand in the world. It is a German based
auto mobile and known for the luxury vehicle, buses, coaches and trucks. Its headquarter is in
Stuttgart, Germany. In 2018, Mercedes benz was the biggest selling premium vehicle brand in
the world having sold 2.31 million passenger cars.
Report will include the global expansion of the Mercedes benz car in the New Zealand.
For this it will include the PESTEL and Porter's five force analysis of global business
environmental that strongly influence the expansion of the organisation in new country.
MAIN BODY
Background information of the organisation
Mercedes-Benz is a German based global auto mobile company. This Mercedes-Benz
brand is known for the luxury cars, truck, buses and coaches. The headquarter of the company is
in Stuttgart, Baden-wurttemberg, Germany. Mercedes-Benz is founded by Karl Benz in 1926,
92 years ago. In 1986 ' Benz Patent Motorwagen is considered to be the first auto mobile. T\he
three pointed star was incorporated as trade mark of the Mercedes. DMG management patented
the tree and as well as four pointed star in 1909. This Mercedes-Benz is subsidiary of Daimler
Limited company which is German multinational automotive corporation. Daimler was formed
with the merger of Benz & Cie and Daimler motoren in 1926 (Market share of new car
registrations in the EU: Mercedes,2019).
Mercedes-Benz is the producer of premium cars and the world's biggest manufacturer of
commercial vehicles. Vision and mission of the company is to be dedicated to0 their customers,
band committed to excellence aiming to provide premium solution for the customer, retail
partners and supporting them in every situation. It has 16 factories in 7 countries. In the February
2019, Mercedes-Benz had a market share of around 7.9 in the EU. The corporation is divided
into five different divisions: Mercedes-Benz cars, Daimler buses, Daimler trucks, Mercedes-
Benz vans and Daimler financial services. Mercedes-Benz cars has broad model range in 2017
Mercedes-Benz cars accounted for over 17 percent of worldwide Mercedes-Benz cars unit sales.

Mercedes-Benz follow the oligopoly market structure. In which oligopoly market
structure, market is being dominated by the few interdependent firms and likely change their
prices according to the competitors and have control o0ver the price of the products.
Major competitors of the Mercedes-Benz is Audi, BMW, Porsche, Lamborghini, Bentley
and Lexus. Sales of the Mercedes-Benz in 2018 was £2,382,791 in 2017 was £2,373,527 and in
2016 was £2,197,956. Revenue of the company in 2018 was £93,103 millio9n and profit
generated by the company in 2018 was £ 7582 million.
Background information on the business environment (New Zealand)
The economy of the New Zealand is the 53rd largest national economy in the world when
measured by the GDP, and the 68th largest in the world when measured by the Purchasing power
parity. New Zealand has one of the most globalised economies which largely depends on the
international trades special with Australia, European Union, the United states, china, south
Illustration 1: Mercedes: market share of February 2019
(source: Mercedes: market share of new car registrations in the EU from December 2017 to
February 2019)