Smart for-Two Essay

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International Marketing Dr. Egan Case Study #9-1 Smart For-two Juan A. Florez Part I. Overview of the case The Automobile industry is under overwhelming pressure from government entities to minimize its adverse environmental impact of their products, but also from potential trends among environmental friendly consumers, and volatile prices at the pump in both Europe and the US. In 1998 Mercedez-Benz took on market adaptation and launch “The Smart For-two”; a joint venture between Daimler Chrysler and Swatch. This market adaptation strategy had its challenges and did not show signs of profitability for a long period of time. Nevertheless; Mercedes-Benzs spend a great amount of resources on the development of such vehicle in order to meet the needs and wants of the potential consumers and the ever changing market. Development The poor market performance of the Smart for-two could have been cause by a sum of different factors ; among them, analysis show that during the time of the launch of the Smart for-two the sport utility vehicle was one of the larges competitors in the market and consumers in the US where not ready to sacrifice size for the sake of saving money at the pump. Another factor could be appointed to the highly competitive compact-car segment and the costly restructuring to reduce Smart’s fixed cost. These factors hurt the brand even thought that its global sales had been growing steadily. Conclusion. It seems that the innovative and progressive thinking of Mercedes Benz was a little to early for market assimilation; Since at the time the European market demand for a smaller vehicle to tackle the narrow streets differ from the American consumers demands which at the moment favor what the SUV'S had to offer; size over savings. I think that this blunder could had been averted if the international marketing research process conducted

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