Mercedes Benz is a German automobile brand, distributed worldwide and known for its high-end vehicles. Like all other car manufacturers, it faces a severe economic crisis that has been particularly detrimental to the automotive sector. In this context, car manufacturers must innovate and artfully produce at lower costs, so that their sales revive, and they do not face the risk of losing market share.
However, the manufacturers should not forget their duty to the ecology in the background of the economic crisis. Indeed, in 2007, the European Commission tabled a draft regulation aimed at limiting emissions of CO2 (carbon dioxide) from the new vehicles produced by the European car industry. This project was adopted by the European Parliament in late 2008.
Although some manufacturers such as Peugeot with its particulate filter have already shown some willingness in this area, the car manufacturers should do more to consolidate the requirements of this regulation. We will therefore conduct a market study to analyze the relevance of developing a small family car, given the current context.
In recent years, Mercedes has been facing great difficulties and thus, finds itself in the throes of restructuring. Following the failures of industrial cooperation and the poor results, the German giant has been regressing in terms of quality and reputation. Vehicles sold are considered too expensive and unreliable, especially in the wake of the persistent electronic problems that have undermined the brand image.
Indeed, Mercedes wanted to do everything at the same attempted to take on too much activities simultaneously, by addressing several different markets, without success. In addition, the group, which relies heavily on electronics, tried to realize cost savings, which made its effect felt on the quality of electronic components, thus causing numerous breakdowns. For example, Mercedes had to recall 1.3 million vehicles for reliability problems.
With hardly a million units sold, the group is falling behind its direct competitors such as Audi and BMW. Competition is tough in an environment that is becoming increasingly competitive and failures in terms of electronic innovation have greatly tarnished the image of quality and prestige of the brand.
Tags: Mercedes Benz positioning in the automobile market, Economic crisis in the automobile industry, Faulty electronic components in Benz models
[...] First, the bonus-malus system, that has been implemented by the bodies of the European Union to regulate the emission of greenhouse gases from cars and to encourage consumers to purchase a ‘clean' vehicle. Furthermore, the project concept car BlueZero is avant-garde. Thus, one would assume that Mercedes is ahead of its direct competitors - BMW and Audi in this market segment. However, the marketing of this car generates more costs than profits for the manufacturer. The question Mercedes needs to ask is if the marketing of such a vehicle would be sufficient to allow it to restart in a sustainable manner. [...]
[...] B.External analysis 1. At the macro level The car market suffered the brunt of the current global economic crisis. Almost all manufacturers saw their sales drop and deficit increase. Due to several phenomena such as the rise in commodity prices, the banking credit crisis, the serious repercussions for subcontractors, automobile firms have found it necessary to restructure in order to avoid bankruptcy. In order to help these firms, governments have brought about two major policies. One is the scrapping of 1,000 euros for the purchase of new vehicles in return for the resumption of a vehicle that is more than 10 years old and the second is the setting up of a bonus-malus ecological function that regulates the amount of CO2 released. [...]
[...] This system operates from the battery at an optimum temperature between 15 and 35 ° which in turn, allows it to provide optimum performance. This greatly reduces the harmful carbon dioxide emissions to just 190 grams per kilometer. During the most recent Detroit Auto Show, Mercedes introduced its Concept Blue Zero car. This vehicle is planned with three power options: the BlueZero E-Cell uses 35 kWh lithium battery, the F-Cell BlueZero 90 kWh of fuel cell and the E-Plus which has an additional three cylinders of 67 horsepower and the Smart ForTwo mounted at the back. [...]
[...] • Is Mercedes considered to be better than its competitors? • Is the consumer interested in the new range of Mercedes vehicles? B. Explanation based on the answers It was noticeable that most of our sample was sensitive to the current green trend and accounted for this in their purchases. However, when asked what brand of car they associate with research and production of green or eco-friendly vehicles that have little impact on the environment, Mercedes is not the most popular answer. [...]
[...] The peculiarity of this system is that it burns the particles accumulated on the porous filter. It is porous so that it forces the exhaust gases to pass through the walls. Besides being environmentally friendly, (it significantly reduces particulate emissions) this innovation does not harm the performance of the car At the micro level Mercedes is present in a highly competitive market with its main rivals being BMW, Audi, Lexus and Volkswagen. As part of its development strategy, Mercedes decided to diversify its product lines and models to increase its sales. [...]
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