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Paper Topic:

Bus 100 ,Introduction to Business

SWOT Analysis

SWOT analysis will help to examine position of Mercedes-Benz on the market taking into account micro and macro environment . Strengths Mercedes-Benz is well-positioned to take on a leadership role in the world . It has a strong brand name which creates a core of loyal supporters around the world . The strength of the company is that it is an expert and leader in the market proposing high quality products and after-sale services . Mercedes-Benz has a unique reputation as a luxurious brand which proposes comfortable and inspiring riding experience for everyone

. The company has a favorable access to distribution networks using policy of strategic alliances and synergies The company has strong patent protection for all models and concept cars . Weaknesses include high price for fashionable and luxurious cars and high cost structure . On the other hand , high price helps to sustain a strong brand image as a luxurious brand available for high classes only . The weakness of Mercedes-Benz is lack of promotion campaigns Also , Mercedes-Benz has long building time per car which keeps waiting many potential customers . Recent problem of Mercedes-Benz in America is UAW contracts that have a negative impact on the company 's image and performance

There is a danger of ignoring the environment , as customers and their needs , competitors , changes in technology , etc , can play an important role in determining competitive success . Opportunities of Mercedes-Benz include high potential to growth and profitability of the company , and improvement of services . New technologies such as a green car , a hydrogen car and hybrids will create new markets for Mercedes-Benz in near future . Increased size of car market in Japan and Europe create new opportunities for sales in these regions . Introduction of new safety features and new models attract more customers worldwide . Major threats include fierce competition and entrance to new markets with high political and economic risk . Japan and the USA have increased taxes on large luxury cars and SUVs . These new regulations have a negative impact on sales and future potential of this segment . Demographic and cultural factors also have a great influence on profitability . The changes in the environment are changed the demand and have a negative impact on customers ' purchasing power and preferences

References

Mercedes-Benz Home Page (2006 . Retrieved from HYPERLINK "http /www .mbusa .com /brand /index .jsp http /www .mbusa .com /brand /index .jsp (accessed 29 July 2006

SWOT Analysis (2004 . Strategic Management QuickMBA . Retrieved from HYPERLINK "http /www .quickmba .com /strategy /swot http /www .quickmba .com /strategy /swot (accessed 29 July 2006

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