Étude sur Mercedes Benz (texte en anglais)

Table of Contents

Introduction : 3

1. Porter Analysis: 4

2. PESTEL Analysis: 5

3. SWOT Analysis 7

4. Key success factors : 8

5. Human Resources Policy. 10

6. What is employer branding? 12

7. Application : Daimler AG (Mercedes Benz) employer branding. 14

8. Conclusion : 18

9. Sources: 19

Introduction :

We have decided to do our project on Mercedes-Benz, one of the most well-known and successful automobiles companies in the world.

This project has given us the opportunity to research on this company and find out what it is that makes Mercedes-Benz such an icon in the automotive world.

In this paper we take a look at the inception of Mercedes-Benz that happened in 1926 over in Germany and then how the company has continued to expand to the United States and now has dealers in 136 countries around the world.

Taking a look at Mercedes-Benz's competition and using Porter's Five Forces model helped us to understand and discuss the company's strategies and competitive advantages that they have chosen to pursue. We will also analyse Mercedes-Benz's highly ranked positions in different areas of the high-end automobile manufacturing industry like in quality and innovation. A comparison of the financial statements with their main competitors, Porsche, BMW, and Saab, will also help to look at the company's state. Lastly, our group will offer some recommendations that we believe could be useful for Mercedes-Benz to incorporate into their business structure.

The Mercedes-Benz brand was formed in 1926 when the Daimler and Benz companies merged. Mercedes Benz manufactures luxury automobiles, buses, coaches, and trucks. It is a division of its parent company Daimler AG, and over the last few decades Mercedes-Benz has been one of the most well-known and successful automobiles companies in the world. In this paper we take a look at the inception of Mercedes-Benz that happened in 1926 over in Germany and then how the company has continued to expand to the United States and now has dealers in 136 countries around the world. The mission of Mercedes Benz as stated by the website is “We invented the automobile - now we are passionately shaping its future.

Parent company: Mercedes- Benz and Daimler

Created: In 1926 by Karl Benz and Gottlieb Daimler

Turnover in 2013: 6,5 milliard (increase of 8% from 2012)

Employee:

Slogan: Engineered around you; Object of desire; The best or nothing

Headquarters: Stuttgart in Germany

Segment: People who want drive luxury cars

Target: Upper rich class businessmen who want cars as a status symbol

Main Competitors: BMW, Porshe Audi Volkswagen  

1. Porter Analysis:

Porter Look at the environment at a micro level (industry)

Bargaining power of new entrants:

For Mercedes Benz the risk of entry by potential competitors is relatively low.

In fact, the risk is low, because to enter in this kind of industry and produce luxury cars you need to have a large amount of capital. Also, economies of scale, brand loyalty, and absolute cost advantage prevent new companies from entering the market. The 3 main competitor of Mercedes Benz are BMW of North America, Porsche Cars North America, and Saab Automobile USA and they have established economies of scale resulting in cost reductions through mass production. These companies have also established high brand loyalty with their customers by providing excellent customer service and by portraying their cars as a status symbol.

Bargaining power of buyers:

For Mercedes-Benz the bargaining power is low, because in the high auto industry buyers don’t have much flexibility in bargaining down to a lower price. The industry is not fragmented at all, and buyers don’t purchase in large quantities.

We can also say that Mercedes- Benz has a large number of customers and the customers is ready to pay the high price for the cars because of their quality and brand name.

Bargaining power of suppliers:

Mercedes-Benz has good supply chain management system and had long relationship with suppliers. The bargaining power of suppliers is high in this industry as the suppliers can dedicate the price tag for the raw materials.

Moreover, suppliers are reliant on high volumes; they have less bargaining power, because a producer can threaten to cut volumes and hurt the supplier’s profits. This affect Mercedes

Threat of substitute:

Mercedes has a brand image of being powerful and luxurious. It is positioned in the exclusive car range where there exist many substitutes for Mercedes;

the threat of substitutes is kind of high but substitutes of Mercedes has a lower performance and quality, it means that the customer is likely less likely to switch from Mercedes to another product.

Threat of Competitive rivalry:

In this industry, there are already many competitors and many enterprises that decide to target and position their products (cars) in the same way. Competitive rivalry is very high in this industry with the dominant European and US markets facing stiff competition from the Asian market.

BMW is one of the most competitive rivals for Mercedes and can have negative impact at short term.

States:

Government limits competition. In fact, policies and regulations can dictate the level of competition within the industry. When they limit competition, this is a positive for Mercedes. …

2. PESTEL Analysis:

Political factors:

• Laws and regulations had affected the automobile industry, augmentation of the fuel prices.

• Taxes

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