MERCEDES BENZ

GROUP MEMBERS ARE:

KARAN.M
ABHISHEAK.V
MAHESHWARANB.R

1
 MERCEDES BENZ
CHAPTER-1

1.1 INTRODUCTION OF THE STUDY:

The Mercedes-Benz brand conjures up images of motoring luxury, quality, and performance.
Indeed, the brand has been responsible for producing some of the world’s most stylish
performance cars. The common values of all Mercedes-Benz cars are superb design and
engineering, together with a sense of heritage. The name Emil Jellinek probably won’t ring
any bells but his ten-year-old daughter Mercedes will. In 1898 Karl Benz designed a new car
for Jellinek to compete in the ‘Nice Race’ that year and on Jellinek’s request, it was named
after his daughter, Mercedes. The famous Mercedes-Benz star logo came about after Karl
Benz sent his wife a postcard with a star marking out the house where he was living in Deutz,
Germany. “One day this star will shine down on my work”, he wrote.
1909 a trademark was taken out on the star, the three points of which have come to symbolize
the threefold nature of motor transport — by land, sea, and air. They have also come to
represent what the brand stands for service and safety and all over the world, a pioneering
spirit and tradition. Case study provided by The Brand Council. The Mercedes-Benz brand
conjures up images of motoring luxury, quality, and performance. Indeed, the brand has been
responsible for producing some of the world’s most stylish performance cars.

The common values of all Mercedes-Benz cars are superb design and engineering, together
with a sense of heritage. The name Emil Jellinek probably won’t ring any bells but his ten-
year-old daughter Mercedes will. In 1898 Karl Benz designed a new car for Jellinek to
compete in the the‘Nice Race’ that year and on Jellinek’s request, it was named after his
daughter, Mercedes. The famous Mercedes-Benz star logo came about after Karl Benz sent
his wife a postcard with a star marking out the house where he was living in Deutz, Germany.
“One day this star will shine down on my work”, he wrote.1909 a trademark was taken out on
the star, the three points of which have come to symbolize the threefold nature of motor
transport — by land, sea, and air. They have also come to represent what the brand stands for
service and safety and all over the world, a pioneering spirit and tradition.

2
1.2 OBJECTIVES OF THE STUDY:

The Mercedes difference lies not only in its construction, but its conception. The Mercedes
Benz Group (formerly Daimler Auto Group) prides itself on utilizing a “human first”
approach to design. This approach permeates even the car’s outer structure, which is crafted
with smooth lines inspired by the human form. The goal, for Mercedes, is to create an
emotional connection between driver and vehicle.

Every other aspect of a Mercedes Benz is focused on human connection, convenience, and
comfort. Mercedes’ are famously driver-centric: heated seats memory with lumbar support,
plush steering wheel grip with easily accessible touch controls, contoured head rests and
more have been designed to make driving as comfortable as humanly possible.

But passengers are never left out in a Mercedes (especially in a Maybach limo). Intuitive
storage, charging ports, cup holders, and other little touches make traveling in the rear seats
just as convenient and comfy as driving.

3
1.3 INDUSTRY PROFILE:

The company founders, Gottlieb Daimler and Carl Benz, made history by inventing the
automobile in 1886. As a pioneer of automotive engineering, Mercedes-Benz sees shaping
the future of mobility in a safe and sustainable way as both a motivation and obligation. The
company's focus therefore remains on innovative and green technologies as well as on safe
and superior vehicles that both captivate and inspire.of efficient powertrains and sets the
course for an all-electric future. Mercedes-Benz is consistently implementing its strategy to
transform itself toward a fully electric and software-driven future. The company's efforts are
also focused on the intelligent connectivity of its vehicles, autonomous driving and new
mobility concepts as Mercedes-Benz regards it as its aspiration and obligation to live up to its
responsibility to society and the environment.

Mercedes-Benz sells its vehicles and services in nearly every country of the world and has
production facilities in Europe, North and Latin America, Asia and Africa.

In addition to Mercedes-Benz, the world's most valuable luxury automotive brand (source:
Interbrand study, 22 Nov. 2023), Mercedes-AMG, Mercedes-Maybach, and Mercedes me as
well as the brands of Mercedes-Benz Mobility: Mercedes-Benz Bank, Mercedes-Benz
Financial Services and Athlon.

The company is listed on the Frankfurt and Stuttgart stock exchanges (ticker symbol MBG).
In 2023, the Group had a workforce of around 166,000 and sold around 2.5 million vehicles.
Group revenues amounted to €153.2 billion and Group EBIT to €19.7 billion

4
1.4 COMPANY PROFILE:

Mercedes-Benz Group AG

Central headquarters in Mercedes-Benz complex Untertürkheim, Stuttgart

 Daimler-Benz (1926–1998)
Formerly  DaimlerChrysler (1998–2007)
 Daimler AG (2007–2022)

Company type Public (Aktiengesellschaft)

Traded as  FWB: MBG

 DAX component

ISIN DE0007100000

Industry Automotive

Predecessors  Benz & Cie. (1883–1926)

 Daimler Motoren Gesellschaft (1890–1926)

Founded 28 June 1926 (original foundation of Daimler-

Benz) 3 August 2007 (foundation of Daimler AG)

Founders Carl Benz

Emil Georg von Stauß[1]

Headquarters Stuttgart

5
 Germany

Area served Worldwide

Key people  Ola Källenius

(Chairman of the Board of Management)
 Bernd Pischetsrieder
(Chairman of the Supervisory Board)

Products Automobiles, commercial vehicles

Production
2,491,600 (2023 sales)[2]
output

Brands  Mercedes-Benz
 Mercedes-EQ
 Mercedes-Maybach
 Mercedes-AMG
 Smart

Revenue €153.2 billion (2023)[2]

Operating
€19.66 billion (2023)[2]
income

Net income €14.53 billion (2023)[2]

Total assets €263.0 billion (2023)[2]

Total equity €92.82 billion (2023)[2]

Owners  Institutional investors (52.7%)

 Private shareholders (22.8%)
 BAIC Group (9.98%)[3]
 Tenaciou3 Prospect Investment Limited (Li Shufu) (9.7%)[4]
 Kuwait Investment Authority (6.8%)
Number of
employees 166,056 (2023)[2]

Subsidiaries Show

List

Website group.mercedes-benz.com

6
1.4.1 MISSION AND VISION :
 Astorg Auto of Charleston holds a responsibility to foster an environment which
empowers employees, promotes innovation, relationships, and growth. We will
continuously strive to inspire consumer confidence by supplying a transparent
atmosphere and offering a premium automobile product with individualized customer
care.
 We will inspire and create an exceptional place to work and to do business. One
employee, one customer, one vehicle at a time. Through our transparent atmosphere,
premium auto inventory, and individualized customer care, we create the luxury
shopping experience that our customers truly deserve.

7
1.4.2 OBJECTIVES OF THE COMPANY:

In doing so, the company focuses on innovative and forward-looking technologies and safe
high-quality vehicles that fascinate and excite. The Mercedes-Benz Group comprises the
automotive business units Mercedes-Benz Cars and Mercedes-Benz Vans as well as
Mercedes-Benz Mobility. Each business unit pursues a strategy that is specifically targeted at
the market and customers it serves. The strategy in question is based on the principles of
sustainability, integrity and diversity and is supported by a highly qualified and motivated
team

8
1.4.3 OUR PRODUCTS:

Mercedes-Benz A-Class (subcompact executive hatchbacks and sedans)

Mercedes-Benz B-Class (subcompact executive Tourers)

Mercedes-Benz C-Class (compact executive car)

Mercedes-Benz E-Class (executive car)

9
Mercedes-Benz S-Class (full-size luxury sedan)

Mercedes-Benz GLA-Class (subcompact luxury SUV)

Mercedes-Benz GLC-Class (compact luxury SUV)

Mercedes-Benz GLE-Class (mid-size luxury SUV)

Mercedes-Benz GLS-Class (full-size luxury SUV)

Vans:

10
Trucks:

See also: List of Mercedes-Benz trucks

Mercedes-Benz Zetros used for

snowplowingUnimog, a famous allround vehicle by Mercedes-Benz

A STRAN Citaro (second generation)

11
1.4.4 COMPETITORS:
1. AUDI:

2. BMW:

3. PORSCHE:

4. LAMBORGHINI:

12
5. BUGATTI:

6. BENTLEY:

13
7. JAGUAR:

14
1.4.5 FINANCIAL STATEMEMT OF ORGANIZATION:
The Management Report of Mercedes-Benz Group AG is combined with the Group
Management Report in accordance with Section 315 Subsection 5 of the German Commercial
Code (HGB) and is published in the Mercedes-Benz Group’s Annual Report 2023. The
Annual Financial Statements and the Combined Management Report for Mercedes-Benz
Group AG for the year 2023 are to be filed electronically with the operator of the German
Company Register for entry in the German Company Register. The Annual Financial
Statements of Mercedes-Benz Group AG and the Annual Report of Mercedes-Benz Group
AG (“Group”) can also be found on our website at w group.mercedes-
benz.com/investors/reports-news/.

Gains/losses on equity-method investments This item includes all income and expenses in
connection with investments accounted for using the equity method. In addition to the

15
prorated profits and losses from financial investments, it also includes profits and losses
resulting from the sale of equity interests or the remeasurement of equity interests following a
loss of significant influence or joint control. The MercedesBenz Group’s share of dilution
gains and losses resulting from the Group’s non-participation or subproportional participation
in capital increases of companies in which shares are held and are accounted for using the
equity method is also included in gains/losses on equity-method investments. Non-
participation or subproportional participation in capital reductions is recorded as fictitious
acquisition transactions. This item also includes impairment losses and/or gains on the
reversal of such impairments of equity-method investments. Other financial income/expense
Other financial income/expense, includes all income and expense from financial transactions
which are included neither in interest income nor in interest expense, and which for
Mercedes-Benz Mobility are included neither in revenue nor in cost of sales. Furthermore,
income and expenses from equity interests are included in other financial income/expense if
such income or expenses are not presented under gains/losses on equity-method investments.
Interest income and interest expense Interest income and interest expense include interest
income from investments in securities and from cash and cash equivalents as well as interest
expense from liabilities. Furthermore, interest and changes in fair values related to interest
rate hedging activities as well as income and expense resulting from the allocation of
premiums and discounts are included. The interest components of defined benefit pension
commitments and similar obligations, as well as of the plan assets available to cover these
obligations and interest on supplementary income tax payments or reimbursements are also
presented in this line item. Interest income and expense and gains or losses from derivative
financial instruments related to the financial services business are disclosed under revenue
and cost of sales respectively. Expense from the compounding of interest on provisions for
other risks is presented in other financial income/expense.

16
1.5 ORGANIZATIONAL CHART:

17
 CHAPTER-2
FUNCTIONAL DEPARTMENTS
2.1 HUMAN RESOURCE DEPARTMENT:
 The farewell to Human Resources Director Wilfried Porth at the car and truck
manufacturer Daimler will take place this year.
 The Stuttgart-based company announced on Wednesday that Porth will resign from
the Board of Management in December as part of the planned spin-off of the Daimler
Truck truck division from the entire group.
 The Supervisory Board appointed Sabine Kohlenisen, who has been Head of Human
Resources and Labor Director of the passenger car subsidiary Mercedes-Benz since
2019, to be Porth's successor.
 Porth's departure from Daimler has been known since April. The timing of the
separation has not yet been official. The 62-year-old's mandate actually ran until April
2022. Porth was leaving at his own request, wrote Daimler. It remains unclear
whether the departure is entirely voluntary. Porth, who has been a member of the
Daimler Board of Management since 2009, is reportedly fatal not least because of the
planned split of the group.
 The previous Daimler AG as the parent company is to disappear from the scene in the
long term and make way for two independent, listed companies: Mercedes-Benz for
cars and vans and Daimler Truck for trucks and buses.
 Both companies already exist, but are still subordinate to the parent company
Daimler.
 Up to now, both daughters had their own HR directors.

18
2.2 FINANCE AND ACCOUNTING DEPARTMENT:

 Mercedes-Benz Financial Services India Private Limited (MBFS India), formerly

Known as Daimler Financial Services India Private Limited (DFS India), is a wholly
owned subsidiary of MBGAG , Germany, incorporated in the year 2010 as a Private
Limited Company. MBFS India is also a Non Deposit Accepting – Systemically
Important Non-Banking Finance Company (“NBFC-ND-SI”) registered with the
Reserve Bank of India (“RBI”).

 MBFS India carries on the activities of 'Finance' which includes operating lease and
financing of vehicles to end customers and dealership related financial services, like
inventory financing for MBGAG franchised dealers.Everything from a single source-
Finance and Insurance Solution for your Mercedes-Benz.

 Our department is dedicated to a range of corporate functions that run the

business in a holistic way. This arises from finance and controlling, the design
of a consistent process and system landscape, as well as creating all the legal
and tax bases in order to support the business in the best way. Moreover, our
HR-Team supports all employees as professional business partner.

19
 2.3 MARKETING DEPARTMENT:

Mercedes-Benz, a global leader in the luxury car market, has earned its prestigious position
through a powerful marketing strategy rooted in innovation, quality, and luxury. This case
study delves into the brand’s marketing approach, exploring its historical roots, contemporary
presence, and market segmentation that have propelled it to unparalleled success.

 Mercedes-Benz’s marketing strategy showcases its commitment to innovation,

quality, and luxury.
 The brand’s historical roots and market segmentation contribute to its global
dominance in the luxury car market.
 Mercedes-Benz’s participation in Formula 1 and the impact of the “Drive to
Survive” Netflix series have elevated its brand image and expanded its fan
base.
 The brand maintains a strong social media presence, engaging with its
audience and showcasing its luxury vehicles across platforms like Facebook,
Twitter, and Instagram.
 Mercedes-Benz continuously targets younger demographics through
collaborations with influencers and targeted ad campaigns.
When it comes to automotive excellence, one name stands above the rest: Mercedes-Benz. With
a rich heritage and a commitment to innovation, quality, and luxury, Mercedes-Benz has
solidified its position as a global leader in the luxury car market.

From its inception, Mercedes-Benz has embraced a marketing strategy that embodies the brand’s
core values. By creating a sensory experience that evokes emotions in potential customers,
Mercedes-Benz goes beyond selling cars; they create a lifestyle that exudes luxury and
sophistication. Their marketing campaigns emphasize the visual allure of their vehicles,
showcasing that luxury is not just about the product itself, but also the feelings it elicits.

One of the key elements of Mercedes-Benz’s marketing strategy is leveraging customer

testimonials. By sharing stories of class and sophistication, Mercedes-Benz resonates with
potential buyers on a deeper level, showcasing the brand’s ability to elevate their customers’
lives. This approach highlights the brand’s commitment to excellence and builds trust and
credibility.

20
Innovation is at the heart of Mercedes-Benz’s marketing efforts. With a focus on continuous
refinement and advanced technology, Mercedes-Benz showcases their vehicles as cutting-
edge and forward-thinking. From safety features to advanced infotainment systems,
Mercedes-Benz leaves no stone unturned when it comes to providing the best driving
experience.

Mercedes-Benz’s marketing strategy also emphasizes the brand’s heritage and legacy. By
showcasing their storied history, Mercedes-Benz evokes a sense of timeless elegance, adding
to the allure and desirability of their vehicles. This storytelling approach creates a deeper
connection with consumers and reinforces the brand’s reputation as a pioneer in the
automotive industry.

Aspirational content plays a significant role in Mercedes-Benz’s marketing strategy. By

inspiring customers to chase their dreams with the promise of luxury, Mercedes-Benz taps
into the aspirations of their target audience. Whether it’s the thrill of a race or the freedom of
the open road, Mercedes-Benz creates a sense of possibility and adventure that resonates with
their customers.

Mercedes-Benz’s marketing approach goes beyond borders, speaking to an international

audience. With a global appeal, the brand transcends cultural boundaries and connects with
customers around the world. This global reach is a testament to the brand’s ability to adapt
and resonate with diverse audiences.

With a robust presence in key markets including China, North America, Germany, and the
Asia-Pacific region, Mercedes-Benz strategically positions itself as a dominant player in the
luxury car market. By investing in research and development, Mercedes-Benz ensures that
they stay ahead of the curve, offering their customers the latest advancements in automotive
technology.

Mercedes-Benz’s marketing mix strategy, encompassing the 4Ps- Product, Price, Place, and
Promotion, ensures a holistic approach to reaching their target audience. By collaborating
with social media influencers and partnering with artists like The Weeknd and Nicki Minaj,
Mercedes-Benz continuously engages younger generations, keeping their brand relevant and
desirable.

21
Mercedes-Benz’s commitment to automotive excellence, innovation, quality, and luxury is
evident in their marketing strategy. With a perfect blend of heritage, innovation, and
aspirational content, Mercedes-Benz captivates the hearts and minds of consumers,
reinforcing their position as a symbol of automotive excellence.

“WHETHER ITS WITH MY ENGINEERS IN THE TEAM,MY HOME

LIFE,OR MY FRIENDS,I DON’T LIKE THINGS TO GET
COMPLICATED
-AND ONE GOOD EXAMPLE WOULD BE THE STEERING WHEEL IN
MY MERCEDES FORMULA 1 CAR”

22
2.4 SALES DEPARTMENT:

We are a determined sales driven team that is dedicated to a variety of activities, true to the
motto: customer comes first. With sales and the best possible customer care in focus, we
alwas look after our customers' needs. Everything always adorned with the right marketing
activities. By the way, we are the only team that is spread all over Germany.
 January 11, 2024 – Mercedes-Benz Group sold 2,491,600 vehicles in 2023 (+1.5%),
despite supply-chain constraints and thanks to its focus on desirable cars and vans as
well as on the electrification of its fleet.
 Mercedes-Benz Cars sold 2,043,800 units in 2023 as demand for superior products
resulted in a rise of Mercedes-Maybach (+19%), G-Class (+11%) and Mercedes-
AMG (+4%) to 328,200 Top-End Vehicles last year. An additional 60,000 V-class
and EQV models were sold in 2023. In Q4 sales of Mercedes-Benz Cars reached
514,000 units, despite constrained product availability and included a 17% rise in
Top-End Vehicles quarter-on-quarter.
 Mercedes-Maybach sold 19% more vehicles in 2023, boosted by strong sales of the
Mercedes-Maybach GLS and S-Class versions in all key regions. In Q4 Mercedes-
Maybach launched its all-electric EQS SUV version in the U.S. market, ahead of its
broader roll-out to other key regions in 2024. The rise in Mercedes-AMG sales (+4%)
in 2023 included a 76% rise in high-performance battery electric vehicles.
 Sales of the G-Class remained strong and once again increased by 11% in 2023 ahead
of the introduction of the electric G this year. The S-Class remains the undisputed
leader in its segment, retaining its market share with around 50% in all key regions.
 Full-year sales in the Core segment reached 1,096,800 units (-2%) in 2023 mainly due
to supplier bottlenecks and the model changeover to the new E-Class, which was
introduced in China in December. Availability of the new GLC and E-Class was
constrained in many markets due to a shortage of 48-Volt systems. The C-Class saw
sales rise by 10% in 2023.
 Entry segment sales reached 618,800 units (+4%) in 2023 driven by the strong
demand of the EQA (+57%) and EQB (+109%).
 Fully electric Mercedes-Benz passenger car sales rose by 73% during the year, to
222,600 units, equivalent to 11% of overall sales and 19% including plug-in hybrids.
Sales of the EQE Sedan surged by 120% globally and BEV sales in the U.S. market
more than doubled (+167%) driven by the new EQE SUV.

23
24
2.5 TECHNICAL DEPARTMENT:

 Mercedes-Benz Research and Development India (MBRDI) is the largest

research and development center for Mercedes-Benz Group AG outside of
Germany. Started in 1996, the Bengaluru headquartered organisation plays a
prominent role in the development of new technologies like connected,
autonomous, shared, and electric in the mobility world. MBRDI, known for its
engineering innovations, has grown to a team of over 8,500 employees and is
one of the earliest technology and innovation center of a global automotive
company to set up a strong presence in India.

 In line with the global ambitions of the Mercedes-Benz Group, MBRDI plays a
prominent role in innovating and accelerating the future of sustainable mobility.
Over the last 25 years of its presence in India, MBRDI has established itself as
an innovation powerhouse. The engineers at MBRDI are committed to
providing an unparalleled experience and comprehensive digital capabilities,
with technology at the core. MBRDI harnesses the role of IT in accelerating the
future of automotive technology in terms of engineering, digitalisation, testing
and simulation, and data science.

 MBRDI offices in Bengaluru specialise in end-to-end capabilities in product

development and IT services. The satellite office in Pune focuses on interior
component designs and IT engineering.

25
 2.6 PRODUCTION DEPARTMENT:

The future has long been here: The digital transformation is changing the products as well as
their production. Module for module, Mercedes-Benz is networking the entire automotive
value chain – from design, through production, to sales and service. The fourth industrial
revolution is accelerating more and more. The foundations for a completely connected “smart
factory” are set.

 Digitalization, robotics, artificial intelligence – even recently this all sounded more
like science fiction than a Swabian production hall. Today, these developments are
changing industrial production fundamentally. Mercedes-Benz understands "Industry
4.0" to be the digitalization of the entire value chain. Physical and digital processes
are becoming increasingly intertwined. This also includes networking with customers:
Their needs and demands are and remain the guiding principle of all of the company's
work.
 Anyone who wants to keep impressing customers in the future, needs not only to
deliver excellent products. But at least as important are fast, flexible and individual
solutions. Even today, hardly ever two identical S-Class vehicles leave the assembly
line in Sindelfingen. The diversity of the drive versions is also increasing. How can
such complex tasks be resolved efficiently? The future of production belongs to the
intelligent networking of man, machine and industrial processes. All these aspects are
concentrated in one vision at Mercedes-Benz: the Smart Factory.

26
2.7 TOTAL QUALITY MANAGEMENT(TQM):

 Total Quality Management (TQM) is a management philosophy that involves all

aspects of quality that are of interest to both the consumer and the organization. The
method has shown to be a feasible way of cutting costs, increasing productivity and
improve in quality.
 A focus on the highest possible product quality includes compliance with stringent
environmental standards and the sparing use of vital natural resources. Mercedes Benz
has combined in house services worldwide in shared service in order to further
improve the quality and efficiency of their administrative functions and various
services.
 Due to growing technical complexity, continually rising requirements in terms of
emissions, fuel consumption and safety, Mercedes Benz goal of meeting and steadily
raising its quality standards, product manufacturing in the various divisions is subject
to production and technology risks. In order to achieve a very high level of quality,
one of the key factors for a customer’s decision to buy a product of the Daimler
group, it is necessary to make investments in new products and technologies that
sometimes exceed the originally planned volume.

27
2.8 QUALITY ASSURANCE:

Cooperation between the globally active automotive and supplier industries is increasingly
presenting both sides with major challenges in terms of high product and process quality.
This is particularly evident in the close integration of the areas of development, purchasing,
production, quality, and logistics with suppliers. In SQMS, the 0-km complaints between
customers and suppliers are processed.

SQMS is integrated into the complex system landscape of Mercedes-Benz. For example, part
data such as part numbers, colors or ZGS numbers from the passenger car development
systems are used via interface. In addition, SQMS uses part number/supplier combinations
from the purchasing system (purchasing contracts). Interfaces to accounting and logistics
automatically control cash and goods flows

The participants

 understand the zero-defect strategy of Mercedes-Benz Cars

 know the procedures for triggering a 0-km complaint
 know how a series test report is created and what the tasks are from taking over the
responsibility
 can create and manage an 8D report in the SQMS system independently
 know the individual steps of structured problem solving according to VDA8D
 can effectively apply the voluntary disclosure

28
 CHAPTER-3

3.1 SWOT ANALYSIS:

Strengths:
1. Strong brand reputation: Mercedes-Benz is synonymous with quality, luxury,
and performance. The brand has a long history of innovation and is associated
with cutting-edge technology, engineering excellence, and superior design,
which has helped it earn a strong reputation worldwide. Brand value increased
by 10% to
$56.103 billion since 2021.
2. Diverse product portfolio: Mercedes-Benz offers a wide range of vehicles,
including sedans, coupes, SUVs, trucks, vans, and buses, catering to a broad
customer base. This diverse portfolio allows the brand to meet customer needs
and preferences across market segments.
3. Focus on innovation: Mercedes-Benz invests heavily in research and
development to stay at the forefront of automotive technology. The company has
pioneered various technological advancements, such as safety features,
autonomous driving, and electric mobility, which help maintain its competitive
edge.
4. Global presence: The brand has a strong global presence, with manufacturing
facilities, dealerships, and customer service centers spread across multiple
regions. This extensive network enables Mercedes-Benz to cater to customers
worldwide and take advantage of growth opportunities in emerging markets.
5. Financial services: Mercedes-Benz Financial Services supports the brand’s
vehicle sales by providing financing, leasing, and insurance solutions to
customers and dealers. This integration of financial services helps facilitate the
purchase of Mercedes-Benz products and enhances customer loyalty.

29
Weaknesses:
1. High production costs: Mercedes-Benz vehicles are known for their high-quality
materials, advanced technology, and precision engineering, contributing to
increased production costs. These costs can make it challenging for the company
to compete on price, especially in markets where affordability is a key factor.
2. Dependence on mature markets: A significant portion of Mercedes-Benz’s
sales comes from mature markets, such as Europe and North America.
Economic downturns or stagnation in these regions can negatively impact the
company’s
revenue and growth prospects.
3. Complexity in the product lineup: Although a diverse product portfolio is a
strength for Mercedes-Benz, it can also lead to customer complexity and
confusion. With many models and options available, customers might find it
challenging to choose the most suitable vehicle for their needs.
4. Regulatory challenges: As a global automotive company, Mercedes-Benz faces
many regulations and compliance requirements in different countries. These
regulations can be complex, time-consuming, and costly, potentially affecting
the company’s ability to operate efficiently and expand in certain markets.
5. Late entry into the electric vehicle market: While Mercedes-Benz has introduced
its EQ sub-brand and announced plans for new electric vehicle models, the
company was relatively slow to enter the electric vehicle market compared to
competitors like Tesla, BMW, and Audi. This delay may have resulted in a loss
of market share and brand image in the growing EV segment.

30
Opportunities:
1. Electric vehicle market: The growing demand for electric vehicles (EVs)
presents a significant opportunity for Mercedes-Benz. The company can expand
its EQ sub-brand and introduce new EV models to cater to the increasing
environmental consciousness of consumers and comply with stricter emission
regulations. Mercedes-Benz announced an investment of more than 60 billion
between 2022 and 2026 to go fully electric.
2. Autonomous driving technology: As the automotive industry moves towards
self-driving vehicles, Mercedes-Benz can leverage its expertise in innovation
and technology to develop advanced autonomous driving systems. This could
attract new customers and set the brand apart from competitors.
3. Expansion in emerging markets: Developing economies such as China, India,
and Brazil offer growth opportunities for luxury car manufacturers like
Mercedes-Benz. The company can increase sales and diversify its revenue
sources by focusing on these markets.
4. Strengthening digital capabilities: Enhancing digital capabilities in online sales,
virtual showrooms, and personalized customer experiences can help Mercedes-
Benz adapt to the changing automotive landscape and meet evolving customer
expectations.
5. Partnerships and collaborations: Collaborating with technology companies,
startups, and other automotive manufacturers can help Mercedes-Benz access
new technologies and resources, drive innovation, and improve its products and
services.

31
Threats:

1. Intense competition: The luxury automotive market is highly competitive, with

well-established brands like BMW, Audi, Lexus, and Tesla vying for market
share. Increased competition can lead to price pressures, reduced margins, and
the need for continuous innovation to maintain a competitive edge.

2. Changing regulations: Stricter environmental regulations and emission standards

worldwide can impact the automotive industry, forcing companies
like Mercedes-Benz to invest in cleaner technologies like electric vehicles and
alternative fuels. Failure to adapt to these regulations could result in financial
penalties and loss of market share.
3. Economic fluctuations: Economic downturns or recessions can reduce consumer
spending, particularly on luxury goods like high-end vehicles. This could
negatively impact Mercedes-Benz’s sales and profitability, especially in mature
markets where the brand has a strong presence.
4. Technological disruption: Rapid technological advancements, such as
autonomous driving, connected cars, and electric vehicles, can disrupt
traditional automotive business models. Mercedes-Benz must continually invest
in research and development to stay ahead of these trends and maintain its
competitive position.
5. Supply chain disruptions: Mercedes-Benz, like other automotive manufacturers,
relies on a complex global supply chain for components and raw materials.
Supply chain disruptions due to natural disasters, geopolitical tensions, or other
factors can negatively impact the company’s production and overall business
operations.

32
3.2 CONCLUSION:

 Mercedes-Benz is a stalwart in the luxury automobile industry with a strong brand

image and a history of innovation. However, it faces challenges in the form of fierce
competition, the need for sustainability, and evolving market dynamics.
 To maintain and strengthen its position in the market, Mercedes-Benz must continue
to innovate, adapt to changing consumer preferences, and invest in sustainable and
digital initiatives. This article will give you a clear insight into the Mercedes Benz
SWOT Analysis.

33
BIBLIOGRAPHY:

 Abele, Rüdiger; Thomas, Peter (2007). Driving Force: 70 years of Mercedes-Benz

diesel technology. Bielefeld, Germany: Delius Klasing. ISBN 9783768819299.
 Adler, Dennis (2001). Mercedes-Benz: Silver Star Century. First Gear series.
Osceola, WI: MBI Publishing Company. ISBN 0760309493.
 —————— (2006). Daimler and Benz: The Complete History – The Birth And
Evolution of The Mercedes-Benz. New York: HarperCollins. ISBN 0060890266.
 —————— (2008). Mercedes-Benz. First Gear series. Minneapolis, MN:
Motorbooks. ISBN 978-0760333723.
 Alfieri, Bruno; Meier, Richard; Piano, Renzo (1995). Form. Mercedes-Benz: The
Roots and Rationale of Beauty. Milan: Automobilia. ISBN 887960080X.
 Boesen, Victor; Grad, Wendy (1981). The Mercedes-Benz Book. Garden City,
NY: Doubleday. ISBN 0385125542.
 Butterfield, Leslie (2005). Enduring Passion: The Story of the Mercedes-Benz
Brand. Chichester, UK: John Wiley & Sons. ISBN 047001802X.
 Engelen, Günter (2002). Mercedes-Benz Personensswagen [Mercedes-Benz
Passenger Cars] (in German). Vol. Band 3: Seit 1986 [Volume 3: Since 1986].
Stuttgart: Motorbuch Verlag. ISBN 3613021692.
 ——————— (2003). Mercedes-Benz Personenwagen [Mercedes-Benz
Passenger Cars] (in German). Vol. Band 4: Seit 1996 [Volume 4: Since 1996].
Stuttgart: Motorbuch Verlag. ISBN 3613023482.
 Heilig, John (1998). Mercedes: Nothing But the Best. London: Apple
Press. ISBN 1850768587.
 Hille-Priebe, Nicole (2008). Bolsinger, Markus (ed.). Design by Mercedes-Benz.
Bielefeld, Germany: Delius Klasing. ISBN 9783768825375.
 Hoppe, Heinz C. (1992). Serving the Star Around the World: the "Simple Life" in
East Prussia to the Daimler-Benz Board of Management. München: Südwest
Verlag. ISBN 3517013609.
 Kimes, Beverly Rae (1986). The Star and the Laurel: The Centennial History of
Daimler, Mercedes, and Benz, 1886–1986. Montvale, NJ: Mercedes-Benz of
North America. ISBN 0936573015.

34
 Kittler, Eberhard (2001). Deutsche Autos [German Cars] (in German). Vol. Band
[Volume] 6: seit [since] 1990 – Mercedes, Ford, Opel und Porsche. Stuttgart:
Motorbuch Verlag. ISBN 3613020521.
 ——————— (2005). Deutsche Autos [German Cars] (in German).
Vol. Offroader und SUV - seit [since] 1945. Stuttgart: Motorbuch
Verlag. ISBN 361302490X.

35
36