Operational Strategies for Audi and BMW to Gain Market Share from Mercedes Benz

INTRODUCTION
TO BUSINESS
OPERATIONS AND
SERVICES 2019

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
1) Introduce a company wide operations improvement strategy. This improvement strategy
must include the tools and techniques.........................................................................................4
2) Operational strategies that Audi and BMW can implement to gain market share from
Mercedes Benz ...........................................................................................................................7
Conclusion.......................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business operation and services is very essential aspect of any organization as it provides the
ease of achieving the organizational objectives with the help of different strategies and policies.
The management of business operation help the organization to attain the efficiency with the
help of planning and controlling the process of the operations. As business operation is defines as
the internal activities which will help the company to achieve the set goals and services are the
output which the company have generated after the completing the operations. As both processes
are very important or the any organization it is also essential to understand how to manage and
increase the efficiency of both the aspects which will increase the profits of the company this
report there is a detailed study about operations and services of Mercedes and how the company
will improve its operations with improvements in the strategies and policies. There is also
analysis of the competitor's operations and services strategies and policies which will decrease
the market share of Mercedes.
Mercedes is the leading automotive company in the world which was established in 1926 and
have headquarters in Stuttgart, Germany. The company have also focused on the quality of their
products and luxury to provide the maximum satisfaction to their premium customers.
Main Body
Mercedes Benz have been facing some issues which is resulting in fall of their reputations and
profit share in the market. It always specialized in luxury and now they are lacking. Their
competitors such as Audi, BMW has gone far ahead to win the race. Mercedes Benz have been
facing issues such as quality control, problems related to batteries and brake issues. In 2001 the
company even had to recall 1.5 million cars because of these issues. Their product the ultra small
city car was not successful due to poor sales and their most premium product S class was also not
selling well in the market because people were having trust issues that the performance of car is
not good or it will face some technical issues as before. They started loosing their loyal
customers who were shifting to their competitors such as Audi and BMW as they never faced
issues related to productivity. People believe that Mercedes Benz lost its reputation in the market
when they merged with Daimler Benz and American's Chrysler which may have made them the
5th largest car manufacturer with a team of 3,85,000 employees around the globe. Before this
merger company never faced issues related to quality and reliability and never had to face the
embarrassment of recalling their cars in such huge amount. To improve the quality they have

already cut 8500 employees and hired a new chief executive Dieter Zetsche who have already
announced that they are going to earn their position back in the luxury car market. The chief
executive admitted that just improving the quality will not put back their competitors such as
Lexus, BMW and Audi but they will beat them with time and regain their loyal customers.
1) Introduce a company wide operations improvement strategy. This improvement strategy must
include the tools and techniques
To change the nature of automobiles company have set fields for future oriented goals. They are
emphasizing on connected vehicles, improving and bringing advancement in the field of
autonomous driving. Company is focusing on enhancing the electric motors as it is the future of
cars. They are working on developing the digital methods and transport facilities. The objective
of Mercedes Benz is clear. The motive of our company is still to gain and be the leading
manufacturer in this industry and develop ourselves so that we can provide new and innovative
services. This all can be achieved only by improving the quality and satisfying the customer and
it is also necessary for future goals as in order to survive the company needs to provide products
and services which are successful in the eyes of the customer. To improve the quality and
improvement in operations Mercedes Benz has come up with a new 5 C strategy-
Core-
Goal of the company is to strengthen the core of the business on a global level in all the
segments they offer their services. The company is working on such products that when a
consumer buys their cars they will feel the thrill of it and they can do that by introducing new,
innovative and outstanding products. Most of their prospective buyers are in Asian countries
specially in China that is why they are trying to make it as per their needs, wants and
expectations. Mercedes Benz already has a established global network which helps them to act
flexibly according to the conditions of the market which is changing at an inconstant rate and act
according as per the wishes of customer. The company is also looking for new ways to expand in
developing their products, their service line, and units they deliver all over the world. The
revenue generated by the company is invested into their business so that they can invest
extensively for the development of current products and for future in our industry. (Wood and
Logsdon, 2017)