- 1 automotive industry competitive analysis
- 1.1 Industry & Competitive Analysis - Automotive Industry
- 220.127.116.11.1 Competitive Analysis of a Firm (Automotive Industry in EL SALVADOR)
- 18.104.22.168.2 Industry & Competitive Analysis - Lecture 3
- 22.214.171.124.3 Competitive Analysis of Telecom Industry
- 126.96.36.199.4 Automotive Industry Research: Vfacts Model Analysis
- 188.8.131.52.5 Clusters in the automotive industry - comparative analysis
- 184.108.40.206.6 Automotive Industry Analysis of the Big 3
- 220.127.116.11.7 Case study analysis of automotive industry.
- 18.104.22.168.8 Evolutionary And Ecological Economics Automotive Industry Analysis
- 22.214.171.124.9 Final Sm03 - Industry and Competitive Analysis
- 1.2 Dynamic Competitive Analysis in Automotive Industry
- 1.3 Automotive industry analysis and resources
- 1.4 You May Also Find These Documents Helpful
- 1.1 Industry & Competitive Analysis - Automotive Industry
automotive industry competitive analysis
Industry & Competitive Analysis - Automotive Industry
- Industry & Competitive Analysis- Automotive Industry -Group 4 Danny Dharmawan Kosasih Ratih Damayanti Widyarini Utami
- Market structure.
- Car Categories
- Herfindahl-Hirschman index (HII)
- Government Policies & Environment Issues
- Porter’s Five Forces
- Competitive Strategy
- Business Strategy Recommendation
- Biggest World Car Makers: Toyota, Mitsubishi, Suzuki, General Motor and Ford have been expanding to Asia region
- They place production bases in ASEAN countries – for efficiency and marketing deeds
- Japanese Car dominates ASEAN market
- New contenders: China and Malaysia
- AFTA sharpened automotive competition in ASEAN – in 2003
- 4 wheelers population in Indonesia per 2005=14.471.750* or increased by 325% in the past 10 years
- Indonesia is becoming production centre
- ATPMs in Indonesia now only hold distribution
- While manufacturing trend are operated by foreign car makers: i.e. Toyota and Suzuki
- No clear policy to protect domestic competition
- Next question, where are we heading to?
* Source: Direktorat Samapta Polri/ GIAMM – notes: not included Ranmor ABRI and diplomatic corps - 2005
- Automotive industry is one of accelerator industries to achieve 7% economic growth
- Textile, Shoes & apparels
- Electronics and its components
- Automotive and its components
- Shipping & docks
- Source: Visi 2030 & Roadmap 2010 Industri Nasional – KADIN 2007
- IDR / USD – Y^Y (Rp)
- Interest (%) – Y^Y
- Balance of Payment - % to GDP Growth
- Budget Surplus (+) /Deficit (-)
- Inflation (%)
- GDP growth (%)
- Astra International (AI)& Indomobil Niaga Internationalare two largest automotive companies in the country having affiliation with a number of foreign principals.
- They become agents for the Indonesian market.
- Other companies have been established by self.
Market Structure: ATPM Competition Countries of OriginBrands Name of company Source : Gaikindo – Q1 2007 Japan Mazda Mazda Motor Indonesia, PT Japan Subaru TC Subaru, PT Malaysia Proton Proton Edar Indonesia, PT Germany Porche Eurokars Chrisdeco Utama, PT Germany VW Car & Cars Indonesia, PT South Korea Daewo Starauto Dinamika, PT Britain Land Rover Java Motors, PT United States Ford Ford Motor Indonesia, PT South Korea KIA KIA Mobil Indonesia, PT South Korea Hyundai Hyundai Indonesia Motor, PT Britain Bentley, Daimler, Jaguar, Roll Royce Grandauto Dinamika, PT United States Chevrolet General Motors Indonesia, PT Germany Mercedes-Benz,Chrysler, Jeep Daimler Chrysler Indonesia, PT Others Japan Honda Honda Prospect Motor, PT Imora Group Japan Mitsubishi Krama Yudha Tiga Berlian Motors Krama Yudha Group
- Astra International dominates the total car market in Indonesia
Domestic Car Sales 2007 Domestic Car Sales 2006 - 2007 Source:www.astra.co.id– 18 July 2007
- Taken example from Toyota Astra Motor (TAM) which shows manufacturer company with Supplier – Production – Buyer business scheme
TMMIN TAM TMMIN Source:www.astra.co.id– 18 July 2007 TAM
- Passengers cars consist of 3 types: sedan, MPV 4X2 & SUV 4X4 each with different types in engine capacity
- Commercial cars consist of 3 types: bus, pick up/truck, double cabin 4X2/4X4 each with different weight (gross vehicle weight)
Categories of Commercial CarsSource: Gaikindo – Q1 2007 For all cc GVW 24 ton (G/D) GVW 10 - 24 ton (G/D) GVW 5 - 10 ton (G/D) GVW 24 ton (G/D) GVW 10 - 24 ton (G/D) GVW 5 - 10 ton (G/D) Bus Cc > 3,0 lt (G) / 2,5 (D) 1,5 lt 3,0 lt (G) / 2,5 (D) 2,5 lt 3,0 lt (G) / 2,5 (D) 1,5 lt cc 3,0 lt 10% 50% 40% 1,5 lt 3,0 lt 10% 50% 40% 2,5 lt Rp. 200 million Rp. 150 – 200 million +/-Rp. 100 million Price around Brisk with many players High Sharp in competition Middle Lead in Market Share Low Competition IntensityBrands 32,528 54,214 170 318,904 2006 52,858 88,096 165 533,917 2005 46,382 28,858 21,448 Financing Value (Rp. Billion) 77,304 54,967 47,662 Total Value 483,148 354,629 317,748 Volume of Sales (unit) 160 155 150 Price (Rp million/unit) 2004 2003 2002 Year
- 2 Wheelers – population in 2005 = 33.193.076*
- Mass / Public Transportation
* Source: Direktorat Samapta Polri/ GIAMM – notes: not included Ranmor, ABRI and diplomatic corps - 2005
- 469% Increase in the 1999-2005 period
- In 2000, sales surged to 300,965 units from only 98,813 units in 1999, due to deregulation in importing duties
- After 2001, sales grew steadily until peaking at 533,917 units in 2005.
- In 2006, sales dropped to 318,904 units as a result of drastic hikes in the oil fuel price late 2005. The fuel price hike weakened the buying power of the people.
469% Source: Gaikindo– Q1 2007
- Sales on the domestic market in 2005 and 2006 were dominated by MPV and SUV, with sales totaling 328,272 units in 2005 and 203,342 units in 2006.
- The market share of MPV and SUV rose because of sharper fall in the sales of other types of cars.
- Strategic Options for Toyota : Grow, Seek Dominance, Maximize, Investment*
Source: Business Growth Strategies For Asia Pacific Relative Competitive Strength Industry Attractiveness Hi Lo Hi Med Med
- Toyota sales overlapping its production capacity – this shortage is fulfilled by Daihatsu production which also made Toyota Avanza and Toyota Rush
- Maintain & launching new type model
- Acquire consumer purchasing power segment
- Around Rp. 100 – 150 million
- Innovate fuel efficient car
- Maintain increase Brand Image
- Strategic alliance with Insurance and Financing companies
- Increase amount of Dealer & improve After Sales Service
Slides for team presentation at MMUGM class of Industry and Competitive analysis
Competitive Analysis of a Firm (Automotive Industry in EL SALVADOR)
Breve Ensayo (en Ingles) sobre el analisis competitivo de una firma de la industria de autopartes en un país centroamericano.
Industry & Competitive Analysis - Lecture 3
Competitive Analysis of Telecom Industry
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Decline and revival of automotive industry
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Automotive Industry Research: Vfacts Model Analysis
VFACTS data analysis revealing the top selling models in Australia and what has changed between 2011 and 2012.
Clusters in the automotive industry - comparative analysis
Automotive Industry Analysis of the Big 3
During a course at the Kelley School of Business at Indiana University, we were tasked with forming a descriptive analysis of the automotive industry and identifying opportunities…
Case study analysis of automotive industry.
Evolutionary And Ecological Economics Automotive Industry Analysis
1. Evolutionary & Ecological Economics:ABrief Automotive Industry AnalysisBy: Stephanie Feld 10’ & Lisa Price 11’BACKGROUND
industry and competitive analysis
industry and competitive analysis
Economics of Strategy
Final Sm03 - Industry and Competitive Analysis
3 STRATEGIC MANAGEMENT INDUSTRY AND COMPETITIVE ANALYSIS Analysis is the critical starting point of strategic thinking. Kenichi Ohmae Things are always different--the art…
Dynamic Competitive Analysis in Automotive Industry
Результат исследований : научная › статья в сборнике
Dynamic Competitive Analysis in Automotive Industry. 2005. стр. 1233-1242.
Результат исследований : научная › статья в сборнике
Dynamic Competitive Analysis in Automotive Industry. 2005. стр. 1233-1242.
Результат исследований : научная › статья в сборнике
T1 - Dynamic Competitive Analysis in Automotive Industry
M3 - статья в сборнике
BT - Dynamic Competitive Analysis in Automotive Industry
Automotive industry analysis and resources
QUBE from just-auto is committed to sharing the best automotive industry resources with auto manufacturers and the global automotive supply chain. From auto market research reports, and car industry trends and statistics, to automotive webinars, motor industry analysis, and automotive white papers.
The first survey into the impact of future model program forecasting on automotive planning by PLDB analyst Glenn Brooks.
This report identifies the seven key technological growth opportunities in automotive, drawing on information from QUBE.
Enterprise data specialist Jinfo gives their assessment of the QUBE automotive intelligence platform and suggested use cases.
In this webinar, QUBE’s Heads of Research and Development forecast the key technological opportunities in automotive.
Mercedes and BMW clearly have adapted differentiation strategy. The BMW Group’s strategy is to be number one. The strategy was introduced before the financial crisis appeared, in 2007. It is a strategy, which does not only focus on key numbers, but also to ensure customer and employee satisfaction and long-term sustainability. Mercedes strategy is to continue building the high quality vehicles with top safety rating and environmental features. Lexus originally had overall cost leadership strategy. In the last few years, the company started to different and being innovative. Their current strategy states: Do it right from the beginning. The company is committed to develop the most luxury cars.
- Mercedes Benz (17.6%, Second)
- Lexus (14.3%, third)
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. Number 3522 Semester 1, 2006 BMW Automobiles [pic] Group Members Daniel Smentek, 13264679 Melanie Bernroitner, 13264682 Marie-Charlotte Neumann, 13264640 Submitted on, May 16, 2006 Table of Contents Executive Summary 4 Introduction 5 BMW and the Automobile Industry 6 Aspects of the Automobile Industry 6 Historical Background of BMW 6 BMW in the Global Environment 9 General Environment of the Automobile Industry 9 Five Forces of the Automobile Industry 14 Competitive Structure of the Automobile Industry 17 BMW’s Direct Competition 22 BMW’s Resources and Capabilities 25 Tangible Resources 25 Intangible Resources: 28 Capabilities 29 Core Competencies 30 Potential Action Steps for BMW 33 BMW’s Strategy towards Success 37 References 41 Appendices 45 List of Illustrations Figure 1: Report's Course of Action 5 Figure 2: Labour Costs in EU Countries 2005 11 Figure 3: Outcome of General Environment Analysis 14 Figure 4: Evaluation of Porter's Five Forces of Competition 17 Figure 5: Strategic Map 20 Figure 6: Profit Margins 26 Figure 7: SWOT Analysis BMW 2006 33 Executive Summary The following report analyses the automobile operations of the BMW group in regard to its competitive position in the automobile.
. the most interesting and complex business sectors in the global framework for analysis. The Japanese cars are now supplemented by luxury models, such as Lexus, Infinity, and Acura to compete with European cars made by BMW, Mercedes, and Audi. In this analysis, I’m going analyze BMW and its competitors using Porter’s Five Forces Model and other marketing tools and determine if BMW has a competitive advantage in the market. History The Bayerische Motoren Werke also commonly known as BMW is the world's most renowned automobile brand. BMW was founded in 1916. The company’s headquarters is in Munich, Germany and the current CEO is Norbert Reithofer. Today, the company is one of Germany’s largest and most successful car and motorcycle manufacturers. BMW Group owns three of the leading premium brands in the automobile industry: BMW, MINI and Rolls-Royce. They set the highest standards in terms of aesthetics, dynamics, technology and quality, born out by the company’s leading position in engineering and innovation. The company also has a strong position in the motorcycles industry and also offers a full range of financial services. Today, BMW’s two biggest competitors are Toyota’s Lexus and Daimler’s Mercedes. The company has adopted a strategy to differentiate from others by being the number one in the industry. Great leadership and.
. BUS 305 Competitive Analysis and Business Cycles How do changes in supply and demand effect oil prices? The demand for oil may or may not decrease even when the price remains constant. The reasons why the demand may change are changes in income, changes in needs, changes in the number of consumers in the market, expectations of future price, and prices of substitute or compliments change Explain what happens to quantity of oil demanded when the price of oil decreases, assuming that the supply doesn’t change. (Hint: Law of demand, movement along the curve). The quantity of oil demanded will increase when the price of oil decreases. If the supply doesn’t change there will shortages in oil. The demand for oil increased so the demand curve would shift to the right. Explain what happens to the price of oil and quantity of oil supplied when Congress approves drilling for the reserves in Alaska, assuming that the demand doesn’t change. (Hint: Law of supply, movement of the curve). When Congress approves drilling for the reserves in Alaska, assuming the demand doesn’t change, the quantity of oil supplied would increase resulting in a surplus of oil. The prices of oil would fall. Since the quantity of oil supplied increased, it would result in the supply curve shifting to the right. Explain what happens to the price of oil and quantity of oil demanded when if China experiences rapid economic growth, assuming that.
. Resource based analysis of BMW: RESOURCES CATEGORIES BMW RESOURCES PHYSICAL RESOURCES BMW’s technology, conventionally designed and styled, effective segmentation according to the market, supply chain and dealership management FINANCIAL RESOURCES Turnover of € 41.53 billion in 2003, gross margins of € 3.2 billion in 2003, annual surplus of € 3.2 billion in 2003, 7.4% profit margins in 2003 HUMAN RESOURCES Highly qualified labor force, Young and affluent professionals INTELLECTUAL CAPITAL Reputation for engineering excellence, brand identity of being powerful , reliable and luxurious, 1104.3 deliveries in 2003, sales of 277000 in 2003 Strategic capability of BMW CATEGORIES BMW RESOURCES THRESHOLD RESOURCES Integrated supply chain, young and well heeled employees, wide spread production and assembly units THRESHOLD COMPETENCIES Quality, reliability, dealings and relationship with supplier UNIQUE RESOURCES Engineering excellence, high quality labor force, CORE COMPETENCIES Technology, speed of production, the ultimate driving machine External resources and value adding network Customer value chain Channel value chain Range of products and designs Design Suppliers Suppliers Suppliers Suppliers Location 1 (Assembler) Price variation dependent on the product specifications Organizations Value Chain Price Core location (Assembler) Suppliers Suppliers Suppliers Suppliers.
. Current Market Conditions Competitive Analysis Paulette Wise, David Kirkland, and Sandra Johnson University of Phoenix Principles of Microeconomics ECO/365 Dr. Mustafa Sayim April 01, 2013 Current Market Conditions Competitive Analysis History and Description of Organization and Product Mr. Coffee® is a company known for its coffee makers and various coffee products, founded in 1972 by North American Systems, Inc. founder Vincent Marotta, and partner Samuel Glazer in Cleveland Ohio. Mr. Coffee® was the first automatic drip coffee maker that provided both convenience and affordability for household use (history, 2009). Factors that affect Demand, Supply and Equilibrium Prices Best known for its pioneering and market-leading automatic drip coffeemakers, Mr. Coffee, Inc. also manufactures iced and hot teamakers, coffee filters, and other small household appliances. In the late 1980s and early 1990s, the company hoped to capitalize on its well-known brand name through new product introductions. In 1992, Mr. Coffee launched the Potato Perfect potato baker, a countertop appliance that gave two potatoes oven-baked flavor and texture in half the time of conventional baking. Other new product introductions followed in rapid succession: the Mr. Coffee Juicer (1&92); The Food Dehydrator by Mr. Coffee (1&93); and The Breadmaker by Mr. Coffee (1994), and the Mrs. Tea hot teamaker (1995). By 1995, new products.
. BMW Group's Worldwide Mission Statement "The mission statement up to the year 2020 is clearly defined: the BMW Group is the world's leading provider of premium products and premium services for individual mobility." BMW is one of the most widely know luxury class car manufacturers in the world. They have great branding strategy and technology but the entrance of Japanese manufacturers in the U.S. auto market creates a problem for BMW. Japanese companies have luxury cars that are lower in price and maintenance and they have the technology to compete with these German vehicles. BMW must take action to compete with the Japanese auto companies by putting great emphasis on quality service at a reasonable price to gain the competitive advantage. History of BMW BMW is a manufacturer of aircraft engines, motorcycles and automobiles based in Munich, Germany. They are the leading auto exporter in Europe. BMW designed their first aircraft engine in 1917. In 1923, they developed their first motorcycle. In 1928, they entered into the automobile business. By the 1930’s, the company began producing touring cars and sports cars. They introduced a new motorcycle to the German market in 1948 after Allied forces dismantled the company’s main factories in 1945.They returned to producing automobiles in the 1950’s but sales were poor. They began competing with.
Essay about Competitive Analysis for Cisco in China
. Strategic Analysis of Cisco in China Presented By: Gary J. Pelkey Fall 2010 Table of Contents Introduction 5 Macro Environment Analysis (PESTEL Analysis) 5 Political Factors: 6 Economical Factors: 6 Societal Factors: 7 Technological Factors: 7 Legal Factors: 8 Micro Environment Analysis (VRIO Analysis) 8 Analysis of Competitive Environment 11 Porter’s Five Forces Analysis to the industry 11 Threat of New Entrants: 12 The Bargaining Power of Buyers: 12 Bargaining Power of Suppliers: 13 Threat of Substitute Products: 13 Rivalry among Existing Firms in the Industry: 13 Porters Diamond Model to the Chinese Market 14 Demand Condition: 14 Related and Supporting Industries: 15 Firm’s Strategy, Structure and Rivalry: 15 Government’s Role: 16 The Chance: 16 SWOT Analysis 16 Strengths of Cisco: 17 Weaknesses of Cisco: 17 Opportunities for Cisco: 18 Threats for Cisco: 18 Current Business Portfolio and SBU Analysis 18 Strategic Business Unit Model: 19 Investment Opportunity in Each SBU: 19 Mission and Vision Statement of Cisco 20 Establishment of Corporate Business Strategy with the help of TOWS Matrix 20 TOWS Matrix: 20 Corporate Strategy: 22 Business Level Strategy for Each SBU 23 Conclusion 24 References 24 Appendix 1 27 Introduction Cisco provides different.
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. Term Paper on Business analysis of Readymade Garments industry in context of Complex Strategic environment of Bangladesh Term Paper on Business analysis of Readymade Garments industry in context of Complex Strategic environment of Bangladesh Prepared For: MD. Shahin Miah Lecturer Department of International Business Faculty of Business Studies University of Dhaka Prepared By: Tanmoy Das Roll No. 01 2nd Batch (15th Batch BBA) Department of international Business University of Dhaka Date of Submission: 15th April, 2013 ABSTRUCT This paper reveals the linkage between the strategic factors of Ready Made Garments and Bangladesh itself. In order to analyze business and competitive positions of RMG and Bangladesh, analysis of Bangladesh’s situation as whole is being described and analysis of RMG sector follows that as a supplementary analysis of each other. SWOT analysis, Porters five forces and porter’s diamond has given highest priority for the sake of simple analysis of this complex factor. An operational business model for RMG sector has been established in the initial part of this paper. In a later part of this paper, nine competitive forces has been established after the discussion of the PEST analysis and the Porters Five forces analysis of the RMG industry ob Bangladesh. Before we dive on this paper, we must.
BMW Competitive Analysis The automobile industry is the most interesting and complex business sectors in the global framework for analysis - BMW Competitive Analysis introduction. The Japanese cars are now supplemented by luxury models, such as Lexus Infinity and Acura to compete with European cars made by BMW and Mercedes and Audi. In this analysis, I’m going to develop company profile of BMW and its competitors (Lexus and Mercedes-Benz) per Porters criteria. BMW AG Group BMW AG was founded in 1916. Today the Company is one of Germany’s largest and most successful car and motorcycle manufacturers in the world.
BMW Group owns three of the leading premium brands in the automobile industry: BMW, MINI and Rolls-Royce. They set the highest standards in terms of aesthetics, dynamics, technology and quality, born out by the company’s leading position in engineering and innovation. The Company also has a strong position in the motorcycles industry; BMW Group also offers a full range of financial services. The Company has adoption a strategy to differentiate from others by being the number one. Long-term thinking and responsible steps have been the cornerstones of business success.
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The BMW Group has been a sector leader in the DJS Indices for the last seven years”. The brand is named to be top employer worldwide also leads in terms of corporate citizenship. This year the company will launch a sustainability campaign, “What’s next? ” Additionally, it has new hybrid model and 100% electric car entering the market in 2012. Their design is consistent with the brand’s trademark. Today’s two of the biggest competitors are Toyota’s Lexus and Daimler’s – Mercedes. Lexus (division of Toyota Motor Corporation)
Established first in 1980s and launched in 1989, the Lexus marque soon became associated with quality, luxury and excellent customer satisfaction. The brand reputation grew rapidly until, just a decade after its founding. Lexus is now sold globally and Japan’s largest selling brand of premium cars and top selling in US. Lexus is a part of the global Toyota family, whose members together comprise the world’s third-leading automaker. Mercedes-Benz (division of Daimler AG) Mercedes Benz is a German automobiles manufacturer, which traces its origins to Karl Benz’s 1886 Benz, known as the first automobile.
MBUSA was founded in 1965 and it is responsible for the distribution and marketing of Mercedes-Benz, Maybach, Smarts and Sprinter products in the United States. Mercedes Benz is behind many technical innovations that are standard automotive features today, like the crumple zone (1959), ABS (1978), Airbags (1980), belt pre-tensioner (1980), ESP (1995), and others. Mercedes-Benz is one of the most known and established automotive brands in the world. It is also the world’s oldest automotive brand that still exists today.
Mercedes Benz holds, the famous three-pointed star rating that is not only recognized as a symbol of quality and safety, but also denotes a proud heritage. Analyzing the competitive strategy of BMW with Lexus and Mercedes-Benz Mercedes and BMW clearly have adapted differentiation strategy. The BMW Group’s strategy is to be number one. The strategy was introduced before the financial crisis appeared, in 2007. It is a strategy, which does not only focus on key numbers, but also to ensure customer and employee satisfaction and long-term sustainability.
Mercedes strategy is to continue building the high quality vehicles with top safety rating and environmental features. Lexus originally had overall cost leadership strategy. In the last few years, the company started to different and being innovative. Their current strategy states: Do it right from the beginning. The company is committed to develop the most luxury cars. Porter Competitive Analysis Market Share (percent, rank) -BMW (17. 9%, First) -Mercedes Benz (17. 6%, Second) -Lexus (14. 3%, third) Market Share Trends
BMW has responded to consumer demands for more fuel efficient cars by producing smaller vehicles such as the 1-series, Mini Cooper, and compact X3 SUV. The company also introduces two Active E 100% electric concepts i3 and i8. Over the past several years there been sales increases for smaller vehicles. They have been the primary driver for the company’s net sales growth. The trend is BMW to increase its share in the luxury car market, where Lexus has a full range of hybrid vehicles and expects an increase in market share.
Mercedes Benz trend is to lose market share for the last decade, and most likely BMW and Lexus will continue to eat Mercedes Benz’s lunch in the market. Lexus financial stability is backed by its parent Toyota. Financial strength BMW Group been named sector leader in by the SAM Group for the DJS Indexes for seven years in a roll. The BMW Group is also the only company in the automotive industry that is listed in this family of indexes every year since it was established in 1999. BMW common stock was the DAX-30 best-performing share last year.
Mercedes Benz has the financial stability backed by Daimler AG. There index DDAIF increase to $92 per share after the company reported record annual results. Profitability BMW and Mercedes profits increased in 2011 while Lexus earnings fall in the last quarters due to the Sendai Earthquake. Management BMW has a typical corporate structure with several boards. Of those, the most important is the management and the advisory board. The management board is responsible for the daily operations and the strategic development of the organization.
It consists of 10 persons, with a different area of responsibility. The advisory board supports the decision making in the management board. The advisory board consists of 20 persons – 10 are employee representatives and 10 are shareholder representatives. Mercedes and Lexus corporate structure is different as they are brands of Daimler AG and Toyota MC. Technology Position Today BMW is the leader in technology development and ahead of its main competitor Mercedes Benz, who has been a leader for many years. Map of Competitors Position: Future goals
Mercedes-Benz is planning to build a new version of its A- and B-class compact cars. They will be launched at European dealerships in 2014. Mercedes’ current two-car compact lineup will double in the future. This will include the successors to the current B-class, expected in Europe this year and the replacement for the A-class next year. In addition, Mercedes will launch an A-class coupe in 2013, which will be called CLC and will compete against the BMW 1-series coupe. A year later an SUV, which is likely to be called GLC, should arrive at dealers and compete against BMW X1 and Audi Q3.
Lexus are planning to bring at least two new cars to add to their lineup – a coupe and a small SUV, they will also increase their range of sports by presenting a variety of chassis and suspension options for better performance and handling. In addition, they have decided to focus on progressive technology in the future. This will come in the form of an expanded line of hybrid vehicles. Assumptions Lexus has the confidence that they can overcome long time leaders in the luxury car industry. In 1989, no one in the industry believed that Lexus posed any threat for them.
In just a decade, Lexus redefined the customer satisfaction experience and became recognized for producing vehicles with industry leading quality levels. Mercedes Benz assumes they will gain its market shares back as they are extending their manufacturing and distribution network. Capabilities Mercedes has a strong brand name, and it is a symbol of prestige. The company is definite capable to get back as an innovative leader in automobile technologies. Lexus is known as low cost leader, because of its high volume manufacturing capabilities. Recommendations
I admire BMW Group strategy to be number one. Last year numbers proved that is great. My recommendations are to continue to invest in R&D toward the development of new energy efficient vehicles. With the increasing oil prices, there is huge marked for hybrids, electric and hydrogen driven cars. It is an excellent opportunity for BMW to capitalize of that. References: Power, JD (2002). Retrieved on February 10, 2012, from Inside the minds: the automotive industry: industry executives from ford, Honda & more on the future of the automotive industry and professions.