Mercedes, a brand synonymous with luxury has fallen behind its competitors. The company now ranks third behind BMW and Audi. Mercedes has been losing market share because of a tough economic climate, a small product mix, and major problems in China. The debt crises in Europe has partly been responsible declining sales to a 20 year low. The company is expected to lower its earnings forecast again for 2013 while it re-tools its product mix. The article mentioned an interesting problem with the firm. "Daimler's sales there ground to a near halt in 2012, in large part because of coordination its two, of often-dueling sales networks." I think this is a great example of corporate culture crossing international lines. To repair the problem, Mercedes combined the two organizations but this can still be a problem. Culture, incentives, and treatment of employees are different in every country. China is still an important market for Mercedes due to the phenomenal growth of the middle class. If the two divisions are working against one another, the entire firm will lose which is evidently happening in this case.
To capture new market share in the Americas and Europe, Mercedes developing new models to appeal to young professionals in a bid to build brand equity in this demographic. Mercedes' vision is to overtake both BMW and Audi by 2020, however if this trend continues its future will continue to look bleak.
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