Which country builds best cars, Germany or Japan (Mercedes vs Lexus) - Assignment Example

? Which country builds best cars, Germany or Japan? (Mercedes versus Lexus) It is a very difficult choice to compare these two best selling brands. Mercedes (German make) has launched various models up till now ranging from passenger cars, trucks, bicycles, buses, vans and sports models. On the other hand Japanese made Lexus has comparatively lesser models in the market (Dawson, 2011). For a better comparison we can select the two top selling Luxury models of both cars, S class Mercedes versus LS class Lexus. The choice of best build cars can be done by setting specific criteria. Customer who wants to make a decision before buying any of these two cars will consider all of the below mentioned aspects. 1. Reliability: In earlier models, Mercedes had some issues in electrical wiring, suspension and brakes but after their out-sourcing, these issues have been resolved. Speaking of today, Mercedes is no doubt a reliable car. Japanese Lexus on the other hand is not equally known for its reliability. 2. Safety: German cars are no doubt much safer then Japanese as proved by crash tests carried out on these cars. 3. Quality: Mercedes and Lexus both are comparable in terms of quality but still Mercedes has an edge over Lexus. 4. Prestige: Mercedes has its origin back in year 1885 and is the oldest automotive brand still in demand. Over the years, Mercedes has set a bench mark for other companies and a lot of customers are willing to pay extra bucks for its prestige and brand name, while Lexus firstly introduced in 1989 is also making its way to set a better standard for their company. 5. Style: Mercedes Benz has always been famous for its stylish design. Lexus however is not very famous for this, they have few exceptional models but there are many cars which are not very famous because of their outer look. 6. Paint quality: Mercedes and Lexus fall in same category in terms of good paint quality. 7. Performance: Mercedes gives a better performance; it has a upper hand in dealing high speed controls while Lexus falls a little behind at high speed. 8. Technology: Germans pay too much focus on technology, they launch a car with special features one year and the next year same features happen to hit the market by Japanese in their new edition. That is how Japanese keep their prices cheaper; they don’t have to spend extra on research and development. German cars are very well engineered. 9. Fuel economy: In Japan Gas prices are high, that is why they focus on fuel economy while making a car and Lexus is more fuel efficient then a Mercedes Benz. Mercedes S class proves to be heavy on fuel efficiency. 10. Interior design: Although Lexus offers a very nice interior but since it is affiliated with Toyota, much of it resembles like a Toyota. Mercedes however has a very genuine appealing Interior. It depends on personal taste but Mercedes ranks higher in interior. 11. Spare parts: If a Mercedes car breaks down then one has to pay a lot to get it fixed again in terms of expensive spare parts and labor cost but a Lexus offers much cheaper spare parts and maintenance. 12. Price: Lexus LS is way cheaper then S class Mercedes. If a customers wants features like leathered seats, universal remote transmitter, heated seats then he has to pay extra for a Mercedes Benz but these features come as standard in a Lexus series. In view of above mentioned criteria Mercedes leads in most of the aspects while Lexus proves to be more economical. According to Galanes and Adams “question of policy”, recommendations that can be given to Lexus for improving its market value include i) more focus on innovation and genuine designs ii) focus on safety features iii) focus on technology . Which country builds best cars, Germany or Japan? In this era of global market competitions, it becomes very difficult to make a decision about choosing a brand best suitable for you. Automobile industry over the past few years has grown tremendously but there are still some leading companies who have managed to establish their repute. Mercedes is one of those names which has its origins in 1885 and continued to grow till now. Lexus on the other hand started off in 1989 and has made its mark in the automobile industry. Only specific class of people can afford these two brands Mercedes and Lexus and once a customer has to make a choice between them, it becomes a question of repute. Customers look forward to good value for money and future prospects of what they will possess for five to ten years. Expensive cars represent an achievement of a lifetime especially for moderate customers. Certainly, the customer would prefer a brand which is genuine in design which also means that he/ she does not doubt the credibility of the manufacturer in terms of replication or modification of design (Heshmati & Sohn, 2007). Mercedes is the genuine manufacture whereas Lexus takes on after it. Procedures like reverse engineering and replication of new technologies and techniques in car manufacturing are not new to Japanese cars including the Lexus. The car loving customer of the 21st century is well aware of this scenario which makes him pick the right choice (Patel, 1995). This is especially true for the value and brand oriented customer. Manufacturers like Mercedes & Lexus are well cognizant of such buyers and will definitely quote a price-tag to suit their customers. It is important to note that car makers do not just quote prices but they evolve prices as a result of the estimated market price of their product which is certainly determined by their customers. Lexus manufacturer must evolve policies to fulfill customer’s expectations, innovations, genuine designs and technologies by investing in research and development. This may lead the company to hiring more engineers, more crash testing expenditures and resultantly expensive cars but would earn a good name for a growing brand like Lexus (Hatzichronoglou, 1997). It is pertinent to mention that any company needs decades to develop a good repute especially when the market is full of competitive sellers. Usually newer companies become copy-cats in order to catch up or make space among the leading brands, but at a later stage when the company makes some place it almost forgets injecting innovation & customer satisfaction associated their product which hinders their way up the ladder over a period of time. In earlier models, Mercedes had some issues in electrical wiring, suspension and brakes but after their out-sourcing, these issues have been resolved. Speaking of today, Mercedes is no doubt a reliable car. Japanese Lexus on the other hand is not equally known for its reliability (Nelson, 1992). Lexus must improve and design its own safety features and style as part of its implementation plan for manufacturing. Its quality and performance should gain customer confidence. Any out of the box gadgetries are sure to target more customers in the market place. Lexus needs to reconcile its product line from customer point of view (Tether, 2000). This means that the company’s manufacturing policy should dictate strict rules and ethics. Original designs, customer care likings, superior quality & a set of unique technologies will surely make a lot of difference for Lexus. References Dawson, C. (2011). The Relentless Pursuit .Singapore: John Wiley & sons Heshmati, A. Sohn, Y. (2007). Commercialization and transfer or technology. New York: Nova Science Publishers,Inc Hatzichronoglou, T. (1997). Revision of High technology sector and product Calssification.Paris Nelson, R. (Ed.), (1992), National Innovation system: A comparative Analysis. Oxford Uni. Press Patel, P. (1995). Localized production of technology for global market. Cambridge Journal of Economics 19 (1), 110-154 Tether, B.S. (2000), Who co-operates for innovation, and why? An empirical analysis. London: Norton Read More