Business proposal - Assignment Example

The company records low unit sales and lags behind Volkswagen AG and BMW in China. The stiff competition has to overall underperformance in China. The aim of this proposal is to look at the challenge facing the company and how they can be solved. It targets prospective investors and luxury automobile dealers who are willing to explore business opportunities in order to meet their goals. The audience needs to be concerned because any threat to the downfall of the Mercedes-Benz will affect them.

Because the Mercedes-Benz defines class, prestige and luxury, its fall in the market will translate to lose of status and class and profit to the targeted audience. In order to Increase Unit sales and beat the stiff competition, Mercedes-Benz should first carry out research on consumer tastes and preferences to establish their needs. The findings will lead to the second solution of investing on new models. Adjusting its organization structure to be more flexible is yet another solution to the problem.

A flexible structure ought to be established because it supports quick decision making and newer models will lead to increased market share hence beating the competition. The proposal also gives a solution of developing a cohesive strategy of targeting areas that highly populated with high class persons. Such audience have the capacity of buying the Mercedes-Benz which is likely to boost its sales. Despite having achieved high record sales of 1.46 million cars globally last year, the Daimler’s Mercedes-Benz car faces a lot of stiff competition from the Germany rivals and small cars who are still leading in terms of profitability, unit sales and appeal especially to the younger generation (Acquisdata snapshot 50).

The major root of the challenge facing the Mercedes-Benz stems from the China market where it records under-performance. The China market is a vital market to pay attention to because it of its high