1. What is the competitive environment faced by MB?
The competitive environment faced by Mercedes Benz is one filled with many different car manufactures and car models. Mercedes has several competitors in terms of price and quality on all of their product platforms. Historically, Mercedes biggest competitors have been Lexus, BMW, Audi, and Cadillac. The economic downturn coupled with the restructuring of domestic auto manufactures has shifted Mercedes competition. In recent years there is gaining popularity in domestic vehicles. Rather than just competing with luxury automobiles, Mercedes is now competing with newly designed domestic automobiles, including those manufactured by Jeep and Ford. These vehicles are listed at a slightly lower price point than most Mercedes but offer many of the same features and reliability once only offered by luxury brands. In addition to the initial cost savings of these domestic vehicles, regular service and maintenance is substantially lower than that of luxury vehicles. This competitive environment requires that Mercedes continue to manage costs for all new and existing products while upholding their long reputation of delivering quality products. It also requires that Mercedes consistently develop and introduce new products to stay current and suit changing markets.
2. How has MB reacted to the changing world market for luxury automobiles?
Mercedes Benz struggled with product development, cost efficiency, material purchasing, and problems in adapting to changing markets in the early 1990s. In reaction to the changing world market for luxury automobiles Mercedes has made several changes within its business. Mercedes has streamlined the core business, reduced parts and system complexity, established simultaneous engineering programs with suppliers, and developed a new range of products. In 1993, Mercedes introduced the all new C-Class to its line up of vehicles. In the years following, Mercedes