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Daimler AG Case Study

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Summary

The problem definition for this report is the following: Can Daimler AG increase their sales in China by 30% at the end of the year (2015)?
China was chosen due to the fact that this country is part of the BRIC-country and because China has the biggest automotive market of the world at the moment. Several factors make the market attractive for Daimler AG such as the fact that the population in the big cities keeps growing, the demand for passenger cars is rising and the sales of Daimler AG in the previous year in China already increased by 24%. Daimler has a great marketing position, a wide variety of products and a strong brand portfolio. Because of this, the company also serves a huge target group, and several niche markets. Daimler …show more content…

● Extensive investments in the future of the company.
Core competencies

The core competencies of Daimler AG lie in their company structure, which is designed like a democracy government structure. This provides efficiency for the company and allows it to deal with crises and opportunities quick. Daimler AG has worked years on developing a corporate culture which promotes and encourages ethical behavior.

Internal analysis

The organization

Daimler AG is continuously striving to improve their sustainability performance and further develop and define their strategy more accurately. The company incorporates sustainability in all of its activities and assures systematic consideration of stakeholders’ demands. In their sustainability management, they focus especially on the long lasting and effective establishment of a culture of integrity. They aim to find out what expectations stakeholders have of them, and which requirements they put on themselves in order to be prosperous on a regular …show more content…

However, when focusing especially on the Chinese market, the company is not realizing its fullest potential. Even though, a very big rise in sales could be seen in China, compared to its competitor it this amount could be much higher. It would be wise for Daimler AG to lay more emphasis on the fact that their vehicles are very environment friendly which is needed since the environment in China is suffering from the overpopulation. If Daimler wants, they could even confront their biggest competitor with the fact that their cars are not environment friendly at all. The fact that the government tries to impose regulations that could hinder the use of cars shouldn’t be too big of a problem since this is only in some cities, and the local population usually finds a way around these. Furthermore it should be advised that Daimler should invest less in research and development since it doesn’t give the desired amount of profit. Instead the company should invest in promotion since it requires extra attention in China due to the difference in culture. If this is not done, a huge opportunity might be missed to sell even more vehicles in this continuing rising market. But if this is done, then Daimler AG could realize the goal of increasing their sales in China by approximately 30% by the end of the year

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