Mercedes-Benz
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Mercedes Benz:
Why Mercedes Benz is unlikely to expand into Africa and Japan
Mercedes-Benz, the luxury brand of Daimler AG, has adopted a multinational strategy in its current incarnation. It has branches virtually all over the world, but Japan and Africa are notable exceptions. On the surface, this may seem curious, given that Japan has long been known as a nation with a strong tradition of producing cars and is also a highly industrialized nation with a great degree of wealth. Africa is part of the developing world, along with India and China, which means that it is poised to offer a fairly extensive market for new cars to meet unmet demand. But there are sound infrastructure and cultural reasons that Mercedes-Benz has chosen not to extend its outreach into those nations.
First and foremost, Japan is already dominated by its own car manufacturers, including Toyota, Nissan, Mitsubishi and Honda, along with many others. Japan pioneered the revolutionary JIT (just-in-time) inventory system, in which car manufacturers would cultivate close, exclusive relationships with suppliers, enabling them to keep a lean supply chain and order only what they needed. "No longer were the preceding...
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