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swot analysisi (BENZ)
SWOT analysis
Strengths
– Worldwide Brand Name:
Daimler-Benz was created since 1926 by two German automobile pioneers, it headquarter was establish in Germany. As company is highly concern on quality of products and process, it becomes worldwide acceptance, reliability and well-known in the field of prestigious and luxury car.
– High Quality and Superior Engineering Products:
Company develops its image for engineering and manufacturing high quality cars for the premium segment. So, this has been a key asset of company ever since.
– High Safety Concern:
Mercedes-Benz attempts to diversify away from competitors, company decides to focus on safety which is the second of MoslowжЉЇ needs that customers always concern after satisfy physical needs.
– Effective Channel of Distribution:
Benz has a lot of customers within Thailand and also in other countries; they are mostly concern on services that Benz provides. In order to give sufficient services, Benz sets up many dealers throughout Thailand which means Benz has strongly control over its channel of distributions.
– After-Sales Services:
This kind of services is one of the most important elements that customers use as criteria for purchasing decision. Mercedes realizes this kind of customers?needs so it tries to get brand loyalty and long term customers?relationship from this point. The way company does is setting up many dealers throughout Thailand in order to satisfy services needs and also provides other services such as 3 years warranty without mileages concerning.
– Innovation:
Car is the product that needs technology to support all the time, so Mercedes-Benz always be the first one who initiates new minor design such as new round front light. This makes products look more modern and more attractive to the customers.
Weaknesses
– Narrow Market Segment:
Mercedes-Benz customers are the one who able to pay for this range of price that offset with high quality and safety car, it emphasizes on the niche market. Due to high price, it is hard to get large amount of customers which related to larger market share in automotive industry.
– High Production Costs:
Car is the product that always needs technology support. Company needs innovation to differentiate its products from competitors, so Benz invests heavily on advanced technology of machinery which considers as the fixed cost of the company and also mainly focus on variable cost such as the cost of hiring high skilled technician.
– High Price:
When compare the price between Mercedes Benz and direct competitor which is BMW Company, price of Benz is higher than BMW within the same model and horse power. This might be because BenzжЉЇ reputation is more superior to BMW, so it can set high price to cover all costs and boost the image of high quality.
– Less Trendy in compare to rival BMW
BMW cars are very popular among young people since they are perceived as trendy. But popularity of Benz is low among young people since Benz cars are perceived as old fashion and less trendy.
Opportunities
– Advanced technology:
Nowadays, computer provides many benefits to automotive industry. Many programmers invent automate machine to support in production function and create system for adding more value to the products. Hence, cars are more safety and automatic which is easier to use, Benz also improve its products to be