Impact of Covid-19 on Mercedes Benz: Trends, Background, and Recommendations

This research report discusses the impact of Covid-19 on Mercedes Benz, including trends in the automobile industry, background of the business, and recommendations for sustainability and innovation. It also includes primary and secondary data analysis, SWOT and PESTLE analysis, and customer preferences for electric vehicles.

Research report
1

Please write where is highlighted in
green areas only. Thank you.
Contents
Introduction.....................................................................................................................................3
Trends, background of the business, issue and RQ...............................................................3
Trends in Automobile industry...........................................................................................3
Background of the business..........................................................................................4
Issue.......................................................................................................................................4
Methodology of the research.......................................................................................................4
Secondary data analysis....................................................................................................4
SWOT....................................................................................................................................4
PESTLE.................................................................................................................................5
Primary data analysis..........................................................................................................6
Recommendation........................................................................................................................10
Conclusion....................................................................................................................................11
2

Introduction
Automobile industry is the biggest industry in now a day in a world. There are
various trends which are coming in the market. A retailing sector is that in which there is
an exchange of goods and services against monetary terms where the dealing party is
consumer and sellers (DIEDRICH, and PEPLINSKI, 2020). The organisation which is
taken in this report is Mercedes Benz. There is various issue which are being faced by
company in this pandemic times so this results in sustainability of the company. In this
report there is a discussion of various trends, background of the company and issues.
Then it consists of research questions. Then there is also a primary and secondary data
analysis and their discussion. In addition, it consists of some recommendations and the
conclusion.
Trends, background of the business, issue and RQ
Trends in Automobile industry
Sustainability: Sustainability is the trend which is most important for every
organisation because this will retain in the organisation for long. Organisation should
have to be work on maintaining sustainability in the market. Mercedes Benz is working
towards sustainability in the market for that they are focusing on marketing strategy and
business strategy to maintain profitability and sustainability.
Innovation: Innovation is another biggest trend which is coming in recent
automobile sector. As this one of the important trends coming in the way. Mercedes
Benz is focusing on new innovations and techniques coming in the market which could
impacts their company and their business environment (Güldenberg, and et.al., 2020).
this will result in increasing of their customer bases and applying new technology in their
busines environment so that customer will be more attracted.
Brexit/Covid 19: This is now a days most important trend which is coming in the
automobile sector. Because this covid pandemic has affected a lot of industry.
Mercedes Benz is affected a lot by this pandemic. As they have reduced their sales and
profits. This pandemic has declined the selling of vehicles and by this many of the
3

company are getting affected. During this pandemic company have to make use of
certain safety measures in order to safe people from virus.
Electrification: In the present time, the rate of depletion of fossil fuels reserves as
well as the amount of harm cause to environment is increases. For this, the introduction
of electric vehicles has taken place in Automobile industry. In order to gain high
adoption, electric vehicles require to spot issues such as insufficient charging
infrastructure, low battery, fuelling renewable energy based charging grids and so on.
This trend also develop an awareness among people to save their environment due to
which the demand of electric vehicles is increased rapidly in automobile industry and
ensures its higher growth at marketplace.
Background of the business
Mercedes Benz is the German automobile company which deals in producing
commercial and luxury vehicles. It was founded in the year 1926 which was founded by
Karl Benz, Gottieb Daimler. The most important visions of the company are to grow in a
responsible manner where they can support entire society and environment and they
have to focus upon (He, 2020). The main strategy which is being faced by Benz is that
to move forward in technological and financial aspect and satisfy customer. excellent
and beautiful car designs and improving of customer service will results in gaining
profits of the business.
Issue
Company’s is facing various issues and problems in operating their activities and
with the staff also. In today world the main issue is covid pandemic as this has
influenced a number of industries in more effective manner especially in Automobile
industry.
During this covid 19 pandemic, many of the people are going outside so there is
no need of vehicles in the country. In context of Mercedes Benz, they also have faced a
lot of problems where the changes in sustainability practices have been changing
significantly.
4

Pandemic is the most important issue because it has made reduced the sales of
vehicles and profitability of the business and the following research question is
completed.
How the pandemic of Covid -19 effected the sales of Mercedes Benz in 2020?
Methodology of the research
Secondary data analysis
SWOT
Strength The major strength of the Mercedes Benz is that it has a strong
brand value and it is a global leader in cars (Morgan, 2020). Then it
is sustainable in the marketed for a long run.
Weakness The major weakness is that company cannot earns its profits in
covid pandemic. At this time, they have to more focus on maintain
safety measures and this turns them weakness of the company.
also, there are certain issue by which company affects.
Opportunities The major opportunities for the company are that now a day’s
various innovative ideas and designs are coming of the different
models so this becomes opportunity of the company if they focus on
their new designs and their trends then this becomes an opportunity
for the company in the market and among the competitors both
(Prestowitz, 2020).
Threats The threats of the company are that there are various competitors of
Mercedes Benz. Also, there is an increasing in fuel prices.
Interpretation
By conducting the swot analysis, it is interpreted that Mercedes
Benz is the global leader in market and has high market presence.
In addition to this, it is analysed that the profitability and revenue of
company is declined because of Covid-19 and to deal with the
situation it is important to focus and maintain safety. Moreover, it is
determined that respective organisation has the opportunity to enter
5

into new market and bring innovation as it assist in increasing
customer base level and profitability as well. Furthermore, it is
analysed that increase in fuel prices decline the profit margin of
company and is one of the major threat for Mercedes-Benz.
PESTLE
Political factor The directness of vehicle can result in developing of the two folds
digits if the legislative issues and economy permit.
Economical
factor
The rate of GDP in the country will be affected how fast is this
expected t grow in the future. Also, high level of unemployment in
the country should also leads to be an issue for the company.
Social Factor like class distribution among population is a supreme
importance. Would be unable to promote a premium product to the
general public.
Technological Technological advance developments made by competitors
(Stoesz, 2020). So, this could affect the company operations and
their designs and initiatives.
Legal Health and safety laws are the laws that are created after
observing he horrible conditions that employees are forcing to work
in industrial revolution.
Environmental Climate change could also result in selling of the products and
services. And also, current weather conditions are can impact the
ability to manage the transportation of resources and finished
products.
Interpretation
It is interpreted that advance in technologies arise cost to
respective organisation and impact on its overall performance in a
negative manner. In addition to this, there are various
environmental factors that impact on capability of finished products
such as present weather conditions, climate change and so on. It is
determined that in the present time of pandemic, there is increase
6

in number of job losses which arise issue for the organisation.
Furthermore, company is required to focus on promoting premium
products in order to maintain its performance and productivity level
in an effective manner.
Primary data analysis
In this research, researcher is using primary and secondary data both in collecting
of the data and information. Primary data is collected through questionnaire survey. And
in this both qualitative and quantitative research is taken into consideration. Also, in this
secondar research is conducted through SWOT and PESTLE analysis. In this given
report, the sample size which is taken in the given report is 20 people or respondents.
Q1. What is your thought regarding Mercedes Benz?
a. Excellent 15
b. Satisfactory 5
Chart Title
Q1. What is your thought regarding Mercedes Benz?
a. Excellent
b. Satisfactory
Interpretation
7

It is analysed that this survey is conducted within 20 respondents, out of those 20, 15
said that they thought excellent about the company and rest others 5 people think
satisfactory.
Q2. What do you like about the Mercedes Benz most?
a. Quality 10
b. After sale service 10
1010
Chart Title
a. Quality b. After sale service
Interpretation
It is analysed that 10 people said that Mercedes Benz quality is very good and rest
others 10 people said that after sale service is very good. Both are equal saying.
Q3. According to you, do you think company is good value of
money?
a. Yes 17
b. No 3
8

17
3
Chart Title
a. Yes b. No
Interpretation
In the above graph it is analysed that 17 people saying yes, they think company’s is
good value of money and rest others 3 people said that they think company Is not a
good value of money.
Q4. At the time of covid pandemic, do you find any cheaper
company than Mercedes?
a. Yes 12
b. No 8
9

12
8
Chart Title
a. Yes b. No
Interpretation
It is analysed that 12 people thinks that yes, they find cheaper company than Mercedes
but rest others 8 people said that no at the time of covid pandemic, they did not find any
of the cheaper company than Mercedes.
Q5. Which kind of car of Mercedes you want to buy?
a. Petrol 5
b. Electric 15
5
15
Chart Title
a. Petrol b. Electric
Interpretation
10

It is concluded from above that 5 people are with the petrol that they want to buy petrol
car from Mercedes. But rest others 15 people said that they will prefer electric car of
Mercedes.
Q6. Would you like to do virtual drive of the car in covid pandemic?
a. Yes 12
b. No 8
12
8
Chart Title
a. Yes b. No
Interpretation
It is analysed that 12 people said that yes, they will like to do virtual drive of the car in
covid pandemic. Then others 8 people said that no they did not virtual drive of the car in
covid pandemic.
Recommendation
It is to be recommended that from above research report is that there are various
trends which are to be considered in mind at the time of researching about Mercedes
Benz. Company is focusing on some of its trends that is sustainability, covid pandemic
and innovation. There are some of the people who are more focusing on purchasing of
the electric vehicles rather than purchasing on petrol cars. Some of the people said that
they find many of the other brands at cheaper rates in comparison with this Mercedes
11

cars. This found at the time of covid pandemic. As pandemic is one of the biggest
issues which is being faced by many automobile companies. So, for being sustain in the
market company should have to provide reasonable rates to the customer or clients so
that they could more purchases their products and also, they have to provide various
innovations in the cars in order to attracts customers in effective manner.
It is suggested to the higher authorities of Mercedes Benz to focus on the safety
and security of its employees and customers as it help in developing positive mind set
towards brand and also assist in marinating loyal customer base level. In addition to
this, it is recommended to respective organisation to produce electric vehicles as the
demand of it is increase day by day. This help company to attract large number of
customer and increase its profitability level. The company mainly offer premium
products and target high class customer due to which its customer base level is less as
compare to its competitors. This, it is recommended to Mercedes Benz to produce
products that is affordable and reasonable so that it can compete with rivals and attain
competitive edge at marketplace.
Furthermore, it is suggested to company to be more digitalised and give virtual
review of cars to customers as it help in reaching large number of customer within less
time frame. Along with this, it is recommended to organisation to ensure less use of
carbon emission as it aid in protecting the environment and also help in developing
brand image within the society and marketplace as well.
Conclusion
From the above report it has been concluded that Mercedes Benz is the on of the
biggest automobile company as a it is operating in the world. In this given report there is
a discussion of impact of covid 19 pandemic on the Mercedes Benz company. There is
a use of both primary and secondary research. Each research helps the investigator in
getting knowledge about the topic and the company both. In addition, most of the
people are satisfied with the company products like variety of cars models and their
designs provided by company. Asa most of the people should have to purchase electric
vehicles rather than purchasing of petrol cars because petrol charges are so much high
as compared to electric cars. It is concluded that the most impotent thing which is being
12

most prefer by the Mercedes Benz is their Quality as company quality is the most
important thing which should be provide by them in order to attract people and customer
towards their products and services.
13