One product of a famous company - Essay Example

Comments (0) Cite this document
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…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91% of users find it useful
One product of a famous company
Read TextPreview

Extract of sample "One product of a famous company"

MICRO AND MACROECONOMIC ANALYSIS OF MERCEDES BENZ and Micro and Macroeconomic Analysis of Mercedes Benz The Mercedes Company designs, manufactures and markets the Mercedes motor vehicles. 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 enticing its reluctant customers.
Microeconomic analysis
a) Demand factors
Common demand factors affecting sales and profitability in the Mercedes Benz Company include advertising and marketing, financing options, price of the product (Mercedes Benz), income of the buyers, and increase in affordability. Other factors include the availability of easy financing, demographic drivers, exports, and new offerings.
Supply factors
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.
b) Mercedes Benz market structure
The Mercedes Benz operates in a perfect market competition where the theoretical market structure does not feature any barriers.
c) Explain what the company can do to continue to operate in this profitable market structure or move towards a more profitable or sustainable market structure.
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.
d) Comment on the different elasticity concepts that can influence the pricing strategy or the competitiveness of the chosen product/company
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).
e) Comment on whether the company is using its resources efficiently or inefficiently
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.
Macroeconomic Analysis
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 money to buy it.
Unemployment will also have a negative effect on the success of the company, and this is because people will not be in a position to purchase the car as they will have other uses for money. Additionally inflation will definitely have a negative impact on the company because the price of the car will be high and people have other pressing needs that they would rather attend to in times that the value of their money is diminished (Guscina, 2008).
Fluctuations in the balance of payments will affect the success of Mercedes-Benz in that when it is favorable, there will be more money in the country hence people will have enough to buy the luxury car as compared to when it is unfavorable. Fluctuations in exchange rates also affect the triumph of the company, and this can be explained in terms of the current exchange rate. If the rate is favorable where one is able to get a good rate to import the car, definitely the sales of the company will increase and vice versa.
The business life cycle will have a great impact on the GDP of a country, and this will translate to the performance of Mercedes-Benz as it influences the money in supply in a given country (Thomas & Lipschultz, 2008). Consequently, if the GDP is high, it means that the living standards of people are also high, and this will translate to people buying the luxury car hence the company’s success. On the other hand, if the GDP is low, people will be living in poor conditions and will not be in a position to acquire the luxury car.
Altug, S & Chadha, J. S. 2003. Dynamic Macroeconomic Analysis: Theory and Policy in General Equilibrium, Cambridge University Press, Cambridge.
Guscina, A. 2008. Impact of Macroeconomic, Political, and Institutional Factors on the Structure of Government Debt in Emerging Market Countries, Issues 2008-2205, International Monetary Fund, New York.
Kurtz, D. L., & Boone, L. E. (2011). Contemporary business. Hoboken, NJ, Wiley.
Lamb, C. W., Hair, J. F., & Mcdaniel, C. D. (2010). MKTG4: student edition. Mason, OH, South-Western Cengage Learning.
Rhoads, C. (2014). The entrepreneurs guide to running a business strategy and leadership.
Thomas, J & Lipschultz, S. 2008. A Microeconomic Analysis of the Full-Size Automobile Market. Economics & Business Journal: Inquiries & Perspectives 1 (1). Read More
Cite this document
  • APA
  • MLA
(“One product of a famous company Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
One product of a famous company Essay Example | Topics and Well Written Essays - 500 words. Retrieved from
(One Product of a Famous Company Essay Example | Topics and Well Written Essays - 500 Words)
One Product of a Famous Company Essay Example | Topics and Well Written Essays - 500 Words.
“One Product of a Famous Company Essay Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF One product of a famous company

Nokia Company Product Marketing Plan a realistic goal for Nokia to increase its market share by 10% within a period of one year. The objective would also be to create a target market segment through providing effective communication such as by using social networking sites, company’s own website and various other direct and indirect communication processes. It can be said that by fulfilling these objectives Nokia, which is famous for user-friendly products, now they can earn goodwill with this eco-friendly mobile phone. The company can also get a scope to manufacture a different model of phone and also introduce various attributes with affordable prices. Target Markets &...
24 Pages(6000 words)Assignment

Famous People have a private life without journalists following them at all times. Famous people and private life One of the prominent figures of the twentieth century, Princess Diana, wife of Prince Charles, died in a car accident in 1997 when the paparazzi or yellow newspaper journalists followed her for knowing more about her private life. “Later tests showed the driver had been well over the legal alcohol limit, but immediate blame was on the photographers and their seemingly incessant quest to capture images of Diana that could be sold to the press”(Lewis, 2011). In other words, Princess Diana suffered death because of the over ambitions of the paparazzi to make more money by selling hot news about the private...
2 Pages(500 words)Essay

Product : X - Box 360 - Company : Microsoft

..., the tech giant is rolling out a major movie-style marketing blitz aimed at driving its motion-sensing device to the top of holiday wish lists.” (Atkinson 2010). However, when one looks at the overall picture, and analyze, whether the Microsoft is able to get back the investment of 500 million dollars through heightened sales, it is not so. That is, even after the 500 million dollars marketing campaign, Microsoft is able to sale a lesser number of consoles than expected. Importantly, the revenue earned from those sales, is a lot less than the 500 million dollars spent, let alone there is a profit. According to market research company, NPD, immediately after that marketing campaign, the Xbox 360 sales for...
7 Pages(1750 words)Term Paper

Macroenvironmental Impact on the Company Product Sales

...Monster Gum in the market, it is imperative that it carries out an analysis on the impacts of microenvioronment on the sales of its product. The objective of this paper is to explore the microenviornmental components; demographic, environmental, economic and cultural factors will likely impact on the sales of “Monster Gum.” Demographics One area of particular interest with regard to market analysis is the demographics. This is refers to population trend study such as population size and movement; birth and death rates; gender, age and ethnic origin (Elearn 85). All these components that make up demographics will affect Monster Corp’s sales of the monster gum. For instance, the company is...
3 Pages(750 words)Essay

Famous Artworks

...?Full Comparing Master Artworks to Novice’s Famous paintings are often magnified that it could not be avoided that other artists base their artworks from them. For instance, the artwork above is obviously similar to that of Leonardo da Vinci’s Mona Lisa. The subject matter is about a beautiful woman. However, da Vinci’s art will perhaps always hold the characteristic that made it very famous which is the woman’s mysterious smile (Jones). For the first artwork, the woman is portrayed to seemingly smile however, on a closer look the woman actually is not smiling. Perhaps this is the manner the artist reflects a similarity to the expert’s famous art. The feature that clearly tells that the...
3 Pages(750 words)Essay

Company Introduction, Market Segmentation, and Product Repositioning

...strength that Holden Trucking Services ill have as a trucking company will be the fact that it will operate as a localised firm and this will help in delivering personalised and more affordable services to the customers. This will position the firms above every other competitor in the market. Holden Trucking Services also seeks to serve the underserved market and this will help in making sure that Holden Trucking Services will not face too tight competition. It will also mean that the firm is able to provide a unique product which will differentiate it in the market. Holden Trucking Services will also be able to lure it customers based in affordable and efficient services as these are not available in...
6 Pages(1500 words)Research Paper

Company intro and 2 product descriptions

...HERBELAIR Introduction "Take care of your skin and body. It is the only place you have to live in." - Jim Rohn Herbelair is in Herbal Body Care products business and since its inception it has been a reflection of customer requirements. Herbelair is a Taiwan based company and has focused on developing safe, natural and innovative range of body care products prepared with herbal components so that you look great without bothering about any ill-effects on your skin. Herbelairensures, always, that the consumer gets his value for money and this is the most prominent reason behind Herbelair's successful establishment in domestic market and increasing impact in other countries. Herbelair provides you the benefit of ordering goods online... and...
2 Pages(500 words)Article

Company Introduction, Market Segmentation, and Product Positioning

...will be offered to the third segment i.e. branded juice companies and sandwich manufacturers to meet the customer’s requirements so that they can brand the company’s machines with their product ranges. For equipment business, two markets will be targeted; one is the equipment supply companies who are the large sized supply houses offering a wide range of equipment to the food and beverage industry and other is the restaurants and hotels market that are the end users who will be provided top quality products and equipment. SWOT Analysis of Express Vending LLC The SWOT analysis of Express Vending LLC gives a brief snapshot of the...
5 Pages(1250 words)Research Paper

Famous trials

...Due Case: Leo Frank (1913) Facts of the case Mary Phagan was 13 year old girl who worked at a local pencil company in Atlanta, Georgia. She was brutally murdered at the company’s premises on 27th April, 1913, when she went to pick her paycheck. A watchman, Newt Lee, found the corpse in the basement of the company and alerted the police. As one of the prime suspects, Newt Lee was taken in for interrogation. However, the coroner’s reports indicated that there had been trials to assault the girl sexually and thus the prime suspect was Frank Leo. Frank Leo was regarded as a sexual addict who molested women to have sexual contacts with him. The investigations asserted...
2 Pages(500 words)Essay

Japanese Famous Product

...Japanese Famous Product As the globes fourth-largest buyer of U.S. products and the globes third-largest financial system, Japan is market, which must be regarded by all U.S. exporters (U.S. Commercial Service 2). Sony Corporation is among the nations and the worlds largest company. The firms diversified business is mainly centered on electronics, entertainment, games and financial services sectors. Sony is one of the worlds leading manufacturers of electronic products for professional markets and consumers and ranks 87th on the list of Global Fortune 500. According to U.S. Commercial Service (2), Sony uses reputable, well-linked...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic One product of a famous company for FREE!

Contact Us