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A Case Analysis of Mercedez Benz


What is the competitive environment faced by MB?
questions 1-7 at the bottom of the Mercedes-Benz All Activity Vehicle Case Study

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1. What is the competitive environment faced by MB?
The competitive environment was that the company faced difficulty in controlling costs, material purchasing, and a fast changing market. The needs of the customer were changing and MB was facing monetary losses. With regards to the AAV market this was targeted at a segment that was expanding, the sports utility segment. Jeep, Ford and GM dominated this.
2. How has MB reacted to the changing world market for luxury automobiles?
MB has reacted by developing its own all activities vehicle that would compete in the fast growing sports utility segment. In addition, MB has moved its manufacturing facilities closer to the market that is the USA. Most, importantly it has become more customer oriented and has used customer opinions for developing almost every part of the car. It worked extensively with customers, suppliers and its designers to develop a car that would not only meet customer expectations but would also help MB make profits.
3. Using Cooper's cost, quality, and functionality chart,2 discuss the factors on which MB competes with other automobile producers such as Jeep, Ford, and GM.
MB competes with other automobile producers by differentiating its chassis, ...

Solution Summary

This positing is a case analysis of Mercedes Benz. This also gives an excellent description of the competitive environment of Mercedes Benz.