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SWOT Analysis

SWOT analysis helps to determine Mercedes-Benz's position in the market, with the use of the macro and micro climate. This article will analyse the company and search for strengths and weaknesses.

Strengths

As a leading automobile company, Mercedes-Benz is in the prime position to lead other manufacturers around the world. It is well established, provides high quality vehicles, and enjoys very good branding, earning itself plenty of respect and prestige. It is a well known provider of luxury, offering solid design and expertly tuned ride comfort, making them one the most comfortable cars to ride. The company is also market savvy, with good access to global distribution with an array of agreements and alliances.

Weaknesses

The quality of the vehicles means that they are fairly or very expensive, with much of the cost due do fashion and prestige. The strong branding which promotes this has positives and negatives - consumers like a good brand, but high prices can also be an issue. Promotion is one clear source of weakness. The company's promotional campaigns are rare, and the cars take a long time to make, which can lead to impatient customers. Recently, UAW contracts have cast the company under a negative light. Mercedes Benz should not lose sight of the ever changing market base. And keep a keen eye on the needs of the consumer, and the competitors.

Growth

There will always be plenty of opportunities for Mercedes-Benz, which can lead to higher profits and future expansion. The new clean energy cars will be the future, and will be a major new opportunity for the company if they can secure the right technology. Booming car markets in China offer new places to sell, and the honing of already established features will ensure that new customers will want to purchase from Mercedes-Benz.

Threats

Competition is increasing, as new and dominating Asian car markets move towards the global stage. Japan and America have increased car tax for large luxury cars, which makes them less desirable. There are also more subtle social and cultural factors which could have consequences for profitability in the future.

References

Mercedes-Benz Home Page. (2006). Retrieved from https://www.mbusa.com/brand/index.jsp (accessed 29 July 2006).

SWOT Analysis (2004). Strategic Management QuickMBA. Retrieved from https://www.quickmba.com/strategy/swot/ (accessed 29 July 2006).

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