Mercedes Benz SWOT Analysis 2022 – Daimbler-Benz AG

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Mercedes Benz SWOT Analysis

SWOT Analysis from Mercedes Benz focuses on Strength as well as weaknesses, opportunities, and threats. Strengths and weaknesses are internal elements while Opportunities and threats are external elements. Here we are going to talk about Mercedes Benz SWOT Analysis.

Did You Know?: The first Mercedes-Benz introduced the modern automobile to the world.

SWOT Analysis provides a well-tested management technique that lets Mercedes Benz in comparison with its competitors and the industry to evaluate its performance in business.

Mercedes Benz is a Luxury Car Manufacturer. Mercedes Benz was established in the year 1926. Head Quarters of Mercedes Benz is in Germany. Mercedes Benz has a production output of 2.3 million vehicles in the world. Mercedes Benz has sedan, hatchbacks, multi-purpose vehicles, sports utility vehicles and sports cars.

Mercedes Benz At A Glance – Mercedes Benz SWOT Analysis

Company: Daimbler-Benz AG
Founders: Karl Benz | Gottlieb Daimler
Year of establishment: June 28, 1926
CEO: Ola kallenius
Headquarters: Stuttgart, Germany
Employees (Dec 2020): 1,73,000
Ticker Symbol: MB
Type: Public
Annual Revenue (Dec 2020): EURO€154.309 billion
Profit net income (Dec 2020): EURO€4.009 billion

Products & Services: Automobiles | Commercial Vehicles | Financial Services | Automobile Repair

Company Website: https://www.mercedes-benz.com/en/

Mercedes Benz Competitors 

Competitors: BMW | Audi | Jaguar | Porche | Lamborghini | Bugatti | Bentley

Mercedes Benz SWOT Analysis

Below Is The Detailed SWOT Analysis Of Mercedes Benz.

Mercedes Benz Strengths – Mercedes Benz SWOT Analysis

1. Good Image of the Brand: Mercedes Benz, like Audi and BMW is a well-known and reputable brand. It is also one of one of the top automobile manufacturer around the globe.

2. The sponsorship program: Mercedes Benz concentrates is the patron of New York Fashion Week, tennis and golf.

3. Manufacturing facilities around the world: Mercedes Benz has both automobile and bus manufacturing facilities in six continents and 26 countries which permits Mercedes Benz to keep their operating costs low and boost their profits.

4. Innovative: Daimler is the parent company of Mercedes Benz and always been acknowledged for its technological advancement. In 1886, Mercedes Benz invented the internal combustion engine, and introduced the “pre-safe” technology in the year 2013. Mercedes Benz was concentrating on the security features of their vehicle.

5. The stability of the financial system: Daimler, a parent company to a number of other famous brands, has a strong financial position that can help groups to reduce their expenses through the same sources.

6. Strong hold on developing markets: Mercedes Benz in emerging countries like India is supported by the luxury car companies such as AUDI, BMW etc. Mercedes-Benz’s principal goal in the emerging markets is to be an industry leader within the Luxury Segment.

7. Product portfolio: Mercedes Benz has a diverse range of vehicles including SUVs and sedans that allow them to compete with other companies in the market.

Mercedes Benz Weakness – Mercedes Benz SWOT Analysis

1. Maintenance and Service Costs: The cost of servicing is one of the major factors that impact the sales of any car or other vehicle. When compared to other competitors in the same industry Mercedes Benz’s maintenance expenses are quite high.

2. Distribution Network:  Although Mercedes Benz could expand strongly however, it appears to be slow in its growth as it makes the distribution of its automobiles very private which affects its supply and, consequently, its brand equity.

3. Conflicting objectives: Daimler is a large group and it is likely that Daimler could be a victim of the conflicting objectives. This could directly affect Mercedes Benz.

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Mercedes Benz Opportunities – Mercedes Benz SWOT Analysis

1. Demand for luxury vehicles: Deman for luxury vehicles is growing firms like VOLVO, Audi, BMW, etc. are placing bets on high-end vehicles and are targeting countries in the developing world because of the increased demand for the luxurious public transportation system.

2. Strategic Alliances: This could be a beneficial strategy for companies in the automotive industry. By leveraging advanced capabilities and cooperating with other businesses to differentiate their products.

3. The shift in development is towards Asian markets: Although the US and European markets are the primary driving market for this sector shifting to emerging markets such as India, China, and other Asian nations is due to the rise of disposable incomes, changing styles of living and steady economic conditions.

4. A growing Automotive Industries: Automotive reflects independence and economic growth. Automobiles enable people to work, live or play with ease that was impossible 100 years ago. Automobiles are connected to markets, doctors as well as employment. Most trips end with an economic transaction or another advantage to the high quality of life.

5. Technological advancement: Developing new technologies that are fuel-efficient and futuristic, as well as hybrid cars could assist in making Mercedes Benz emerge as a market leader in the world.

Mercedes Benz Threats – Mercedes Benz SWOT Analysis

1. A fierce competition: with other players in the sector Participation of companies like Audi, BMW, Volvo etc. that leave no opportunity unexplored to become an international player and a the first in many markets.

2. Price of Fuel Volatility:  At least for the segment of passengers fluctuation in the price of fuel remain the main driver for the growth of this segment. Legislation from the government regarding the use of alternative fuels , such as CNG. Shell gas is also a factor in inventories.

3. Economic Instability: macro-economic instability, recession, unemployment, etc. are all economic issues that will affect the automobile industry for years to take.

4. Investment and fixed costs: that are high in R&D Due to the fact that markets of old remain overcrowded and the industry is shifting towards emerging markets via factories, R&D centers, however the advantages of these moves are not yet fully realized.

5. Government Regulations: Policies of the government like reducing global warming by preventing personal transportation as well as fluctuations in the cost of fuel restricting roads permits’ validity and restricting the access of vehicles from outside the state are a few of the rules and regulations that have been enacted in various regions around the globe and impacting the field across the board.

6. Raw Material: The rising cost for Steel or other materials could directly impact the cost of production as well as sales for Mercedes Benz.

7. Price War: Price War is a different threat for the business.


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