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