Mercedes Benz Aav Essay

1986 Words Oct 16th, 2012 8 Pages
Mercedes-Benz AAV
1. What is the competitive environment faced by MB?

The competitive environment faced by Mercedes Benz is one filled with many different car manufactures and car models. Mercedes has several competitors in terms of price and quality on all of their product platforms. Historically, Mercedes biggest competitors have been Lexus, BMW, Audi, and Cadillac. The economic downturn coupled with the restructuring of domestic auto manufactures has shifted Mercedes competition. In recent years there is gaining popularity in domestic vehicles. Rather than just competing with luxury automobiles, Mercedes is now competing with newly designed domestic automobiles, including those manufactured by Jeep and Ford. These vehicles are
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Mercedes has, for the most part, upheld the same strategy with its sports cars. Mercedes currently offers the SLK for around $80k, much cheaper than the competing Audi R8 at $125k but Mercedes also offers its most expensive sports car the Mercedes Benz SLR McLaren. The SLR sticker price is roughly $450k, which landed it on the list of the top –ten most expensive sports cars in the world. Although the SLR was included on the list of the most expensive sports cars in the world, it was far from being the most expensive, in fact, it was the cheapest. The SLR was easily beat out by Ferrari, Lamborghini, and Bugatti for sports car pricing. Because of this, the sports car platform, particularly the SLR, brings Mercedes down to the mid-upper range portion of Cooper’s chart.

Functionality – Mid-Upper Range – If this were 5 years ago, Mercedes would have placed at the upper range for functionality on Copper’s chart. All Mercedes come standard with luxury features such as leather interiors, heated seats, excellent stereo systems, and tons of technology, which would have merited a high rating in the functionality portion of the chart. Unfortunately for Mercedes, newly redesigned domestic vehicles now offer many of these same features in their standard models and almost all in their top-of-the-line models. For example, the Jeep Grand Cherokee Overland Summit comes standard with full leather interior, heated seats and

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