Case 8-47
Solution go to problem
1. What is the competitive environment faced by MB? Thecompetitive environment was that the company faced difficulty incontrolling costs, material purchasing, and a fast changing market.The needs of the customer were changing and MB was facingmonetary losses. With regards to the AAV market this was targeted ata segment that was expanding, the sports utility segment. Jeep, Fordand GM dominated this. 2. How has MB reacted to the changingworld market for luxury automobiles? MB has reacted by developingits own all activities vehicle that would compete in the fast growingsports utility segment. In addition, MB has moved its manufacturingfacilities closer to the market that is the USA. Most, importantly it hasbecome more customer oriented and has used customer opinions fordeveloping almost every part of the car. It worked extensively withcustomers, suppliers and its designers to develop a car that would notonly meet customer expectations but would also help MB make profits.3. Using Cooper's cost, quality, and functionality chart,2 discuss thefactors on which MB competes with other automobile producers suchas Jeep, Ford, and GM. MB competes with other automobileproducers by differentiating its chassis, transmission, air conditioner,electrical system and other systems. MB tries to develop its productalong these function groups by meeting the categories of safety,comfort, economy and styling. In other words, MB is using the'function groups' to meet the concerns of the customers. MB is tryingto differentiate its higher priced product by positioning itself as betterin terms of safety, comfort, economy and styling. 4. How does theAAV project link with MB strategy in terms of market coverage? MBstrategy in terms of market coverage is that it wishes to streamline itscore business the AAV project helps MB to streamline its corebusiness. MB strategy was that it should have additional market share,new segments, and new niches. MB started developing
1. What is the competitive environment faced by MB? Thecompetitive environment was that the company faced difficulty incontrolling costs, material purchasing, and a fast changing market.The needs of the customer were changing and MB was facingmonetary losses. With regards to the AAV market this was targeted ata segment that was expanding, the sports utility segment. Jeep, Fordand GM dominated this. 2. How has MB reacted to the changingworld market for luxury automobiles? MB has reacted by developingits own all activities vehicle that would compete in the fast growingsports utility segment. In addition, MB has moved its manufacturingfacilities closer to the market that is the USA. Most, importantly it hasbecome more customer oriented and has used customer opinions fordeveloping almost every part of the car. It worked extensively withcustomers, suppliers and its designers to develop a car that would notonly meet customer expectations but would also help MB make profits.3. Using Cooper's cost, quality, and functionality chart,2 discuss thefactors on which MB competes with other automobile producers suchas Jeep, Ford, and GM. MB competes with other automobileproducers by differentiating its chassis, transmission, air conditioner,electrical system and other systems. MB tries to develop its productalong these function groups by meeting the categories of safety,comfort, economy and styling. In other words, MB is using the'function groups' to meet the concerns of the customers. MB is tryingto differentiate its higher priced product by positioning itself as betterin terms of safety, comfort, economy and styling. 4. How does theAAV project link with MB strategy in terms of market coverage? MBstrategy in terms of market coverage is that it wishes to streamline itscore business the AAV project helps MB to streamline its corebusiness. MB strategy was that it should have additional market share,new segments, and new niches. MB started developing