Global car industry case 2009
Transcript of Global car industry case 2009
THE DAIMLER – CHRYSLER MEREGER
By: Mehul & Tanmay
INTRODUCTION
Here in this case there are two companies. Daimler Benz & Chrysler
:Daimler Benz: CEO – Jurgen Schrempp
Largest industrial firm in Europe
Product: Luxury Car, Commercial Vehicle, SUV (Sports Utility Vehicle)
other hand, Aero Plane, Train & Helicopter
:CHRYSLER:
CEO – Robert Eaton
3rd largest car maker in the U.S.
Product: light trucks, pickups van & minivan
MERGERMERGERHere in this case the merger is between
Daimler Benz and Chrysler. Company make merger to avoid technology
threat and overheads. Some other merger such as
GM to SAAB (Subsidiaries Opel in Germany & Vauxhall in England) FORD to British Jaguar, Volvo & Aston Martin BMW to Rovers (Mini) & Roles Royce
Star:
High business growth and strong market share
If any company in star position it must have high profit & growth.
Daimler Benz & Chrysler alone can’t reach this stage
By merger company can
Question Mark:
High Growth & weak market share
To avoid this position company has to increase investment, customize the product and advertisement of products.
For Example – Hording , Visual Adv. & Pamphlet
Cash cow:
Low growth rate & strong market share
Daimler Benz & Chrysler are in this position
To avoid this position companies make merger to increase growth rate
Dog:
Low growth rate & weak market share
At this position any company may be windup the business.
SWOT Analysis
S – Strength W – Weakness O – Opportunity T – Threat
Strength::Before Merger :
For Daimler strength is luxury car, innovation small car, average profit per vehicle is higher than GM, Ford & Chrysler.
Low cost
For Chrysler strength is low price car, light truck, pickups and minivan.
:After Merger:
At the time of merger Daimler sell fewer vehicle than Chrysler but earn high revenue. Chrysler CEO speaks fluent English, German, French & Italian and had already worked in GM, BMW & Ford. Other hand Daimler’s CEO worked in U.S. & South Africa. After merger it prove to be strength of the company.
Weakness: It focuses only luxury segment in only European countries. High priced position. Lack of product for Asian market.
Opportunity: To introduce new model Focus on new segment To overcome trade barriers.
Threat: New entrance
Change in technology
Government Policy