Strategic Leadership and Analysis of Mercedes-Benz Report

This report provides a comprehensive strategic analysis of Mercedes-Benz, examining its leadership, market position, and competitive environment. It begins with an overview of the company, its products, services, and industry context, including market trends and challenges. The report then delves into strategic issues, employing frameworks such as PESTLE, SWOT, SOAR, Porter's Five Forces, and gap analysis to assess the company's strengths, weaknesses, opportunities, and threats. The analysis covers political, economic, social, technological, and legal factors impacting the automotive industry, along with an evaluation of competitive rivalry, customer and supplier power, and the threat of substitutes and new entrants. Furthermore, the report outlines Mercedes-Benz's business strategy, including cost leadership, differentiation, and focused strategies, and concludes with a strategic plan, action items, and recommendations to enhance its market position and achieve its goals.

Strategic
Leadership-
Mercedes Benz

Purpose of Study
Description of Strategic Situation
◆ The organization
◆ Product/Service
◆ Industry
◆ Market
◆ Mission/Vision/Values
Discussion of Strategic Issues
◆ PESTLE analysis
◆ SWOT Analysis
◆ SOAR Analysis
◆ Porter 5 Force Analysis
◆ Business Strategy
◆ Gap Analysis
◆ Summary of Strategic Insights
Design for Action
◆ Strategic Plan
◆ Explanation
Conclusion

Mercedes-Benz Tagline
THE BEST OR
NOTHING

“

Introduction
◆ Mercedes- Benz is a global automobile Marque
and a division of Daimler-AG.
◆ Founded in the year 1926 by Karl Benz &
Gottlier Daimler.
◆ The year 1999 saw merger of Mercedes with
Daimler to become Mercedes-AMG
◆ Company introduced a new tagline in the year
2010 “ The best or Nothing” which exemplifies
Perfection, fascination and responsibility

Description of
Strategic
SiutationThe focus here will be on The organization,
its product and services, Industry
knowledge,market understanding and
mission/vision and values of the company

Organization-Mercedes Benz
◆ Part of Daimler Chrysler and is known globally
as a premium vehicle provider.
◆ Created a reputation on the pillars of great
quality, unmatched luxury, durability and
enhanced customer experience.
◆ Front runner of plethora of technological and
safety innovation.
◆ Earned a revenue of 94.7 Billion Euros in the
year 2017.

Product Offering
◆ Mercedes-Benz offers
wide range of Product
portfolio ranging from
compact to luxury
vehicles.
◆ Product line is focussed
on three parameters:
◆ Emission-free
◆ Accident –free
◆ Networked driving
Product/ Service OfferingService Offering
The service offering is spread
across three divisions:
◆ Financial Services-Further
bifurcated in Financing,
leasing, insurance, Fleet
management, Banking
service and car rental.
◆ Mobility service-Focus on
smartphone based mobility
concept.
◆ Mercedes Me-Connects the
customer with everything he
needs through its Huge
network

Automobile Industry
◆ Global sales of the automobile sector is forecasted
to reach a its peak in the coming 5 years.
◆ Growth of the emerging economies and need for
clean fuel vehicles are key drivers for the growth.
◆ Globally the sales is projected at 78.6 Million
Passenger cars by 2017.
◆ Industry valued at 2 trillion USD, with a CAGR of
3.4%.
◆ Economies like EU, Japan, China, US & India will
be the biggest markets for growth.

Market Study
◆ Challenges faced by Automobile Market
◆ Complexity and cost pressures-Increasing
government regulation has pushed the companies
on the back foot to innovate.
◆ Diverging markets-Emerging markets need more
vehicles in comparison to developed markets, the
companies are unable to meet the demands.
◆ Digital Demands- Companies have to focus on
enhancing the customers experience online.
◆ Shifting industry Landscape-Companies have to
focus on value add to stay competitive

Mission/Vision/Values-Mercedes-Benz
Mission
◆ Be the industry
leader for premium
vehicles, technical
accessories and
collections.
◆ Mercedes wants to
ensure that with
innovation and high
quality products it
achieves and
accelerates its
business
Vision
The vision is to
delight and engage
the customer in
everything the brand
is doing, and
continuously improve
the effectiveness of
its quality
management system
to improvise its
business product and
processes.
Values
Mercedes has built a
strong culture around
its strong corporate
values. The values are:
◆ Passion
◆ Communication
◆ Fun
◆ Integrity
◆ Teamwork