Mercedes Company Developments - Case Study Example

Mercedes Company Developments (Name) (University) Introduction Founded in 1871, Mercedes company manufactures different types of advanced automobiles such as family cars, and commercial tracks (Bhasin, 2016). Since historical, Mercedes company has had constant innovations that had massive contribution towards the company ability in attaining automotive global leadership position. Currently, the industry is attributed for being at the forefront in manufacturing the electric driven vehicles, improving the safety of the driver and passengers, attaining global competitive advantage, and improving on the organization sustainability. As such, this paper seeks to identify and analyze Mercedes company growth based on the innovation strategies, value preposition, the sustainability efforts and competitive strategies in the motor industry. Innovation Attention Assist In road Transport industry, long journeys without road stops expose drivers to fatigue which carry high risk of road accidents. This is because majority of the drivers are unware of the fatigue hence onset of drowsiness while driving. Mercedes company is renowned for inventing attention assist vehicles purposefully to foster the safety of drivers and passengers by reducing the increasing number of accidents. The attention assist model was to target majority of the drivers exposed to drowsiness or the sleep deprived drivers whom are known to fall asleep while driving. The model basically alerts the driver to stop the car and take some rests after detecting unique driving style from the driver (Mercedes-Benz USA, 2017). Attention Assist model employs the use of sensors that analyze driver behavior and recognizes vast driving styles due to driver’s tiredness (Mercedes Benz, 2017). For example, the model detects vast steering corrections that can suggest the onset of the driver drowsiness. Additionally, Attention Assist invention considers and array of factors such as how the driver interacts with the vehicle controls, switches, crosswinds, and road smoothness purposefully to alert the driver on how to keep the eye on the road. Basically, it can be argued that Mercedes Attention Assist was purely a reverse invention. This is because the core purpose of invention focused on identifying the existing customer pain, the decrease of the automobile accidents, and development of a product that solves the customer problems, thus the innovation of Mercedes attention assist (Parkman, 2017). Essentially, Mercedes attention assist invention underwent glocalization by selling the attention assist equipment to the current users of Mercedes vehicles (Parkmann, 2017). Glocalizationinvebtion is also showcased through the optimization of the Mercedes vehicles to target the developed-global consumers and the premium price for the margin orientation (Parkmann, 2017). Sustainability According to Taticchi, business sustainability refers to business technique under which creates long-term shareholders values by advocating for the existing opportunities and managing organization risks in economic field, environmental changes, and social developments (Taticchia, 2017). Recently, Mercedes company launched the Mercedes EQ Model which is an electric driven brand purposefully to foster the sustainability development of the company (Mercedes-Benz Germany, 2017). The model adheres to the zero emissions of the CO2 to the environment as per the regulatory of the various governments. To ascertain the organization sustainability towards environment and business, EQ model uses only 5-minute charge time for 100 Kilometer, adheres to comprehensive electro mobile ecosystem, strong and cost efficiency for the targeted consumers. Mercedes new E-Class model was certified with ISO 14062 environmental standard for the vehicle environmental compatibility (Daimler AG, 2016). E-Class model is attributed for having impressive overall performance in CO2 emissions, 27% less use of primary energy in comparison to its predecessors, saving of 600 liters of fuel, and high percentage use of quality recycled plastics during E-Class manufacturing (Daimler AG, 2016). Lastly, E-Class model guarantees use of allergy-friendly to its interior users under the certification of European Center for Allergy Research Foundation (ECARF) (Daimler AG, 2016a). Mercedes focused on reducing costs as a means of improving the company sustainability. Under the case study of Dreier, Mercedes company designed a VI engine that is renowned for cutting consumption and costs. The design of VI engine operations ensures that the CO2 emissions towards the environment is minimized while little amount of fees under the government regulatory are paid for the emissions (Mercedes Benz, 2017). Essentially, the VI engine is attributed for reduction of fuel consumption by 3% to 5% (Mercedes Benz, 2017a). As such, it can be argued that Mercedes sustainability focuses into the entire life cycle of the automotive right form the identifying of the raw materials, the car production process, its many years of use, and its eventual recycle process. Critically, Mercedes engagement into sustainability is perceived to focus on improving the company brand reputation, reduction of cost while improving energy efficiency, increase competitive advantage, better innovations for service offerings, and to enhance stakeholder relations. Competitive Advantage Mercedes attains competitive advantage among other automobile manufactures competitors by creating sustainable competitive advantage through innovation and creation of premium brands. Mercedes company has employed a strong engineering technology that basically purposefully to foster innovative products against its competitors such as BMW. Through innovations, Mercedes produce quality cars through differential technique by employing broad product range, linkages, and fast mover innovation hence a winning advantage to the competitors. Additionally, Mercedes company is renowned for creation of premium brands still under the differential innovation approach. Such an approach has positioned Mercedes Benz to be the top selling premium vehicles across United States of America in 2017 (Mercedes Benz, 2017 b). Such an outstanding result can be attribute to Mercedes technical team in innovate solutions that focuses on improving on customer safety, manufacturing vehicles that are of touch of class, durability, and sustainability. Examining the 2008 global financial crisis, majority of the global automotive manufacturing companies had to slash the purchase price of automotive so as to survive in the crumbling economy (Godon, 2016). Contrarily, Mercedes company did not adhere to the price war and succeeded in differentiating the company premium brands from the competitors. This is because Mercedes premium brands are hard to be imitated by other automobile companies, status symbol car, and of luxury. As such, it can be argued that Mercedes innovative competitive advantage basically focuses on the differentiated product line by being a class leader in the automotive industry. Value Proposition In contemporary society, Mercedes Benz brand has grown into unquestionable value and unsurpassed design simply because of its value preposition. The Mercedes company value preposition entails both the German engineering and the international flare that have worked together to ensure that Mercedes automobiles meet the needs, demands, and the desires of the automobile buyers across the globe. Firstly, the value prepositions of Mercedes are based on premium features to provide the owners with a world class touch of experience in automotive sector. The premium features ranges from best technology outfit security, safety features are up to standards, a glide of comfortably is guaranteed, and adaptive cruise control (Aristocrat Motors, 2017). Firstly, the value preposition of Mercedes company focuses on target market. The company identifies potential customers whom are able to purchase the company products. Essentially, the company has developed different models of automobiles such as Mercedes-Benz CLA, GLA, and Mercedes C-Class as an approach of developing offering that appeals most to the target customer’s preferences. Secondly, the value preposition of Mercedes is based on the value. The Mercedes prices are high simply because of the tangible and the intangible attributes of the vehicles such as the engine, cruise management, wheel drive, comfort, prestige, and exhilaration. Such a value preposition ensures that Mercedes customers get value of what they pay for. Thirdly, Mercedes employs the use of proof as a means of value preposition the target audience. Proof reinforce Mercedes Benz evidence based on quality, sustainability, strength, and durability through the company historical development of the innovation process, testimonials from the previous users, fact sheets, and the provocative points. Such a process creates powerful message for Mercedes company value preposition. Lastly, Mercedes value of preposition are highly embedded to the company differentiation technique. Mercedes value of differentiation focus on the best alternative solutions for the road transport system rather than just immediate substitutes. This has enables the company to gain massive growth simply because it has expanded its frame of references that are unique, and non-imitable from the competitors. This suggest why majority of customers will always settle for Mercedes varied types of brands. Conclusion Conclusively, Mercedes proves to be a well-established company due to its imperative performances in the automobile and transport industry. The company brand is attributed to quality, class, and status production of vehicles. Such enlisted aspects have spearheaded Mercedes company to remain a prominent brand in the automotive luxury vehicles industry. Contrarily to such successful efforts, Mercedes is currently facing stiff competitions from BMW and the Audi company. Recently, BMW introduced SUV models that almost have similar concept and appearance of Mercedes (Trefis, 2014). As such, Mercedes company need to put much efforts in innovating electric based and environmentally friend vehicles so as to improve of the product value preposition and the organization sustainability. These will enable the company to attract huge number of potential customers hence realizing its return of investment. References Aristocrat Motors. (2016). Mercedes-Benz Value Preposition. Available at http://www.aristocratmercedes-benz.com/clp-mercedes-benz-value-proposition. [Retrieved on 6th/August/2017]. Bhasin, H. (2016). Marketing Mix of Mercedes Benz. Available at http://www.marketing91.com/marketing-mix-mercedes-benz/. [Retrieved on 6th/August/2017]. Daimler AG. (2016). Environmental Check for New E-Class. Available at http://3blmedia.com/News/Environment-Check-New-E-Class. [Retrieved on 6th/August/2017]. Daimler, AG. (2016). Mercedes-Benz Sustainability Magazine 365. 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Mercedes-Benz USA. (2017). Attention Assist. Available at https://techcenter.mercedes-benz.com/en_CA/attention_assist/detail.html. [Retrieved on 6th/August/2017]. Parkmann, M. (2017). Reverse Innovation. Available at https://drive.google.com/file/d/0B4jOpNrnRM3ZZDlHTVd3Zlc3ZjQ/view. [Retrieved on 6th/August/2017]. Taticchi. E. (2017) The Business Case for Sustainability. Imperial College Business School, p. 11. Available at https://drive.google.com/file/d/0B4jOpNrnRM3Za2xrbU1JZGxOOXc/view. [Retrieved on 6th/August/2017]. Trefis. (2014). Daimler's Mercedes-Benz Faces Stiff Competition From BMW And Lexus In The U.S. Forbes. Retrievefromhttp://www.forbes.com/sites/greatspeculations/2014/06/17/daimlers-mercedes-benz- faces-stiff-competition-from-bmw-and-lexus-in-the-u-s/. [Retrieved on 6th/August/2017]. Read More