Daimler-Benz Case Study

3028 Words 13 Pages
I. Introduction: The world of business is perhaps the sole determinant of wealth distribution in the global system, being in control of the world's assets and finances and governing the different methods of their usage. Within business, lies the power to influence, change and conquer individuals and nations; this allows businesses a wide range of opportunities to freely expand while ignoring all restraints. Among the most prominent characteristics of business is cooperation; it is exactly that which allows businesses to flourish beyond their geographical and political boundaries. Cooperation in that sense happens in many different methods, in many cases, two companies get together and cooperate in a single instance on a project or a venture. …show more content…
Chrysler, on the other hand, was founded by Walter P. Chrysler in 1925 and maintained itself as one of Detroit's Big Three, along with Ford and General Motors, after it acquired Dodge in 1928. The two companies displayed two different business strategies and styles in car manufacturing. Daimler-Benz focused a big part of its production in building top notch, high-value, technically advanced vehicles, usually placing expensive price tags on their products due to their superior quality. This has naturally positioned the corporation under a spotlight where its products are more centered on more up-scale clientele. Therefore, the company's market strategy would often focus on the luxurious and unique traits of their products. Contrarily, Chrysler had been known to manufacture cars that are more affordable and that more than often feature no fancy specifications or special engines, but rather adopted a marketing strategy that largely targeted the mass market, especially as it remained one of the most affordable automobile brands in the United States; its local …show more content…
In one way, Chrysler was to benefit from Daimler's reputation, quality and ever-renewable innovation, while Daimler was to benefit from Chrysler's trendy marketing strategies. Another indicator that this merger would have been successful is the initial allocation of $47 billion for research and development purposes, an investment that should have served as a step to efficiently integrate both corporations' best assets and produce a final result that relies on the strengths of each. Other factors that could have possibly contributed to the success of the merger was the timely failure of Ford's safety measures, which should have opened up the market for a new competitor to introduce the desired measures and achieve massive sales. Also, the initiation of a hybrid car project should have been a valuable asset for the company if it were to reach the production phase. Furthermore, this merger between a North American and a West European company should have allowed them both to enter new territories in China as they would be able to more effectively focus their attention on new markets. Another valuable asset that should have aided the success of this merger was re-branding, if the newly conceived DaimlerChrysler was to market itself properly as a new brand that combines both the professionalism of German design and

Related Documents