Mercedes Benz Aavi Project Essay

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Mercedes Benz AAV Project 1. Q. What is the competitive environment faced by MB? Ans; Mercedes Benz is a world know Luxury car brand. Their main competitors are BMW, Lexus, Acura, Audi etc. At that time, not many of their luxury brand competitors were into AAV cars, companies who had AAVs in the market were GM, ford Jeep etc. But this was a rapidly growing market. 2. Q. How has MB reacted to the changing world for luxury automobiles? Ans: Luxury Car makers were hit hard by the recession the early 1990s. The car sales plunged and companies were showing losses. Mercedes Benz struggled with product development, cost efficiency, material purchasing, and problems in adapting to changing markets to face the tough market conditions Mercedes made several changes within its business. Mercedes streamlined the core business, reduced parts and system complexity, established simultaneous engineering programs with suppliers. In search of additional market share and new segments, MB started developing new range of products. New products introduced were the C-Class in 1993, the E-class in 1995, the new sportster SLK in 1996, and A class and M class all-activity vehicle (AAV) in 1997. In addition, MB moved its manufacturing facilities closer to the market that is the USA. Most, importantly it became more customer oriented and used customer opinions for developing almost every part of the car 3. Q. Using Cooper’s cost, quality and functionality chart, discuss the factors on which MB competes with other automobile producers such as Jeep, Ford, and GM. Ans. MB competes with other automobile producers such as Jeep, Ford, and GM in the AAV range. Also MB competes with Lexus, BMW, Audi etc. in the luxury cars segment. MB tries to develop its product along with these function groups by meeting the categories of safety, comfort, economy and styling. In other words, MB is

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