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One product of a famous company - Essay Example

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This aspect makes the company an important economic sector in terms of revenue. Like any other organization, the Mercedes Benz Company has its own creative marketing strategy, which helps in…
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One product of a famous company
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One product of a famous company

Download file to see previous pages... Common supply factors affecting sales and profitability in the Mercedes Benz Company include efficient operations, presence across segments, accessibility to latest technologies, finance availability, wide dealer networks and price of the Mercedes Benz. Other supply factors include production factors, government taxes and policies.
In order to move towards a sustainable and a profitable market structure, the Mercedes Benz Company must ensure that it increases its product affordability. The company must also ensure it implements a better advertising and marketing, financing options, and price of the product.
Different elasticity concepts tend to influence Mercedes Benz pricing strategy. The concepts include availability of substitute products, responsiveness of quality in terms of the motor vehicle, time and importance of the motor vehicle in the consumers’ budget (Rhoads, 2014, 78).
With its performance in the global markets, it is evident that the Mercedes Benz Company is utilizing its resources efficiently. The Mercedes Benz Company is currently performing well in the motor vehicle (Lamb, Hair, & Mcdaniel, 2010, 57). This aspect is reflected in the company’s revenues and performance index, which indicates that the company is among best performing companies in the motor vehicle industry. Performance and revenues demonstrate efficient use of resources in the organization.
The macroeconomic environment plays a significant role in comprehending how the external forces affect a company (Altug & Chadha, 2003). Mercedes Benz being a high-end car is definitely affected by changes in economic growth as it determines the money in people hands. People will not have the money to buy the car in times of economic downtimes. Consequently when the economy is under turmoil, the success of the company is undermined because the car’s models are expensive hence people will not have the ...Download file to see next pagesRead More
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