Company Mercedes- benz Essay Example | Topics and Well Written Essays - 750 words

Company Mercedes- benz - Essay Example This paper looks at the internal and external corporate strategy by Mercedes Benz and their entry strategies into new markets across the world. The paper also looks at the structure of the business and its affects the entry strategies of the business in new markets. The characteristic company in the automobile industry, Mercedes-Benz owned by Daimler AG, manufactures Mercedes Benz automobiles. The company has a good capital base and engages in manufacture of a range of automobiles. The most notable are the luxurious cars manufactured and sold in luxurious packages. The cars have given the company a competitive edge in the market for a long time and have amounted to large percentages of the company revenues (Mifflin, Hill & Jones 481). The new electronic and self-propelled automobiles are the latest brand in the high quality automobiles from the company. The engagement of the company in innovative automobile tuning and development is also a great branch of their development. AMG, a br anch of Mercedes-Benz propels the innovation activities in the company through the production of high quality and innovative engines that make the company a good brand worldwide. The company has entered into the businesses because they want to gain a competitive edge over the other people in the market (Mifflin, Hill & Jones 480). The revenue streams from the businesses also propel the people to enter the market. Mercedes-Benz has a proper entry strategy into the global market, bearing in mind the competitive nature of the market. The company mainly uses the need-based entry strategy where they develop brands that fulfill the needs of the market. In established and confiscated markets, the company uses product differentiation in order to penetrate the markets. With the number of automobile companies increasing, the company manufactures automobiles with unique features, which do not exist in the market. This helps the company to beat off competition from the other companies as they e asily convince the customers with the new models of automobiles (Mifflin, Hill & Jones 494). In penetration of the global market, Mercedes-Benz uses the specific model method in penetration. Different parts of the world use different models of vehicles and are willing to pay for the models. The company manufactures models that fit such markets hence the markets can pay the prices of the automobiles readily. The regional diversification of the models from the company helps the company to penetrate the automobile market easily and efficiently increase their sales in the regions. The market entry and penetration strategies cater for the strengths and policies of the company, which call for innovation and creativity as the base for the growth of the company. The main weakness of the company is the premium pricing policy. However, the regional, operational, and categorical production of the automobiles help to further the sales of the brands. The financial analysis below is proof of the performance of the company. source: Mifflin, Hill & Jones (501) The company structure of Mercedes-Benz supports the market strategy of the company very well. Mercedes-Benz has diversified companies producing automobiles in different area. The subdivisions in the company mainly base on the area that the model deals in. a different section