SWOT of Mercedes Essay Example for Free

SWOT of Mercedes Essay Strengths Due to Mercedes is a leading of automobile companies and lead other manufacturer around the world. It is well established, provides high quality vehicles, and enjoys very good branding, earning itself plenty of respect and prestige. It is a well-known provider of luxury, offering solid design and expertly tuned ride comfort, making them one the most comfortable cars to ride. The company is also market savvy, with good access to global distribution with an array of agreements and alliances. Weaknesses The great quality means that they are price is very expensive, with much of the cost as a result fashion. The strong branding which promotes this has positives and negatives consumers like a good brand, but high prices can also be an issue. Promotion is one clear source of weakness. The companys promotional campaigns are rare, and the cars take a long time to make, which can lead to impatient customers. Recently, UAW contracts have cast the company under a negative light. Mercedes Benz should not lose sight of the ever changing market base. And keep a keen eye on the needs of the consumer, and the competitors. Opportunity There will always be plenty of opportunities for Mercedes-Benz, which can lead to higher profits and future expansion. The new clean energy cars will be the future, and will be a major new opportunity for the company if they can secure the right technology. Booming car markets in the world offer new places to sell, and the honing of already established features will ensure that new customers will want to purchase from Mercedes-Benz. Threats Competition is increasing, as new and dominating Asian car markets move towards the global stage. Japan and America have increased car tax for large luxury cars, which makes them less desirable. There are also more subtle social and cultural factors which could have consequences for profitability in the future.