5 Forces Analysis
Complete Marketing Audit using PEST Analysis
Marketing Segmentation and Targeting for the A-Class Model
Portfolio Analysis for Mercedes-Benz entire range of passenger cars
Potential Strategies to move forward
Competitive Analysis 5 Forces
The objective of this analysis is to investigate how the organization needs to form its strategy in order to develop opportunities and protect itself against competition and other threats.
The bargaining power of suppliers:
Daimler-Benz is a large scale operation that holds close ties with all of its suppliers. Most of which are closely located and who have done business with Daimler-Benz for many years. An example of how respected Daimler-Benz is in the eyes of its suppliers, can be seen during the economic downturn of the late nineties when Daimler-Benz hit trouble and was forced to negotiate prices down. This was achieved, and displays how suppliers are equally dependent on Daimler-Benz as Daimler-Benz is on its suppliers. So the bargaining power of suppliers can be said to be elastic.
The bargaining power of buyers:
There are a very large number of buyers for Daimler-Benz and their power is relatively small. In order to purchase a Mercedes-Benz one must have assets (as mentioned in the market segmentation) of reasonable wealth. A business executive for example is the one who has the assets to buy a Mercedes-Benz not a part-time employee in a McDonalds.
With around 25-30 dealerships in each country or state Daimler-Benz reaches all its customers, through an excellent network that ensures their satisfaction therefore reducing their bargaining power.
The buyers are not buying in bulk like in the retail industry where bargaining power is high, they simply can afford one or not.
The threat of potential new entrants:
The markets that Mercedes-Benz operates in are characterized by economies of scale, where as the level of sales increase unit cost...
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