Mercedes-Benz
What is the competitive environment faced by MB?
MB's competitive environment consists of other brand manufacturers producing all-utility vehicles, a new market for automobile manufacturers in the 1990s. Competitors were also produced vehicles that conformed to consumer safety demands (airbags, etc.) and that were cost-efficient. By the time MB entered into the AAV market, consumers were moving towards more luxury brand automobiles, which conformed more to MB's aim.
How has MB reacted to the changing world market for luxury automobiles?
It has accommodated consumer demand for more safety -- as the sampling of consumers showed this to be the most common demand in vehicles with a "relative percentage rating of 41%" (Albright, 2000, p. 3). But, of course, most significantly, it has expanded its luxury class to include production of the AAV -- a new type of vehicle for MB, never before produced. Its purpose is to combine the SUV phenomenon with the luxury brand stylings of MB for a new vehicular experience.
3) Using Cooper's cost, quality, and functionality chart, discuss the factors on which MB competes with other automobile producers such as Jeep, Ford, and GM.
Using Cooper's cost, quality and functionality chart, the factors...
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The two major rivals on the Chinese market are BMW and Audi. As a consequence, BMW has cut its retail prices in 2005 for its three and five series sedans by 12% or 13%, which caused a decrease of $12,048 for BMW 530i (Xinhua News Agency, 2005). As specialists in the field have predicted, since 2005 the Chinese luxury and sports vehicles market has diversified, and so did the competition.
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