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Global car industry case 2009

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Global car industry case 2009

  1. 1. THE DAIMLER – CHRYSLER MEREGER By: Mehul & Tanmay
  2. 2. INTRODUCTION <ul><li>Here in this case there are two companies. </li></ul><ul><li>Daimler Benz & Chrysler </li></ul><ul><li>:Daimler Benz: </li></ul><ul><li> CEO – Jurgen Schrempp </li></ul><ul><li> Largest industrial firm in Europe </li></ul><ul><li> Product: Luxury Car, Commercial Vehicle, SUV (Sports Utility Vehicle) </li></ul><ul><li> other hand, Aero Plane, Train & Helicopter </li></ul>
  3. 3. <ul><li>:CHRYSLER: </li></ul><ul><li>  CEO – Robert Eaton </li></ul><ul><li>  3 rd largest car maker in the U.S. </li></ul><ul><li>  Product: light trucks, pickups van & minivan </li></ul>
  4. 4. MERGER <ul><li>Here in this case the merger is between </li></ul><ul><li> Daimler Benz and Chrysler. </li></ul><ul><li> Company make merger to avoid technology </li></ul><ul><li> threat and overheads. </li></ul><ul><li>Some other merger such as </li></ul><ul><li>  GM to SAAB (Subsidiaries Opel in Germany & </li></ul><ul><li> Vauxhall in England) </li></ul><ul><li>  FORD to British Jaguar, Volvo & Aston Martin </li></ul><ul><li>  BMW to Rovers (Mini) & Roles Royce </li></ul><ul><li> </li></ul>
  5. 6. <ul><li>Star: </li></ul><ul><li> High business growth and strong market share </li></ul><ul><li> If any company in star position it must have high </li></ul><ul><li> profit & growth. </li></ul><ul><li> Daimler Benz & Chrysler alone can’t reach this stage </li></ul><ul><li> By merger company can </li></ul>
  6. 7. <ul><li>Question Mark: </li></ul><ul><li> High Growth & weak market share </li></ul><ul><li> To avoid this position company has to increase </li></ul><ul><li> investment, customize the product and advertisement </li></ul><ul><li> of products. </li></ul><ul><li> For Example – Hording , Visual Adv. & </li></ul><ul><li> Pamphlet </li></ul>
  7. 8. <ul><li>Cash cow: </li></ul><ul><li>  Low growth rate & strong market share </li></ul><ul><li>  Daimler Benz & Chrysler are in this position </li></ul><ul><li>  To avoid this position companies make </li></ul><ul><li> merger to increase growth rate </li></ul>
  8. 9. <ul><li>Dog: </li></ul><ul><li> Low growth rate & weak market share </li></ul><ul><li> At this position any company may be windup </li></ul><ul><li> the business. </li></ul>
  9. 10. SWOT Analysis <ul><li> S – Strength </li></ul><ul><li> W – Weakness </li></ul><ul><li> O – Opportunity </li></ul><ul><li> T – Threat </li></ul>
  10. 11. <ul><li>Strength: </li></ul><ul><ul><li>:Before Merger : </li></ul></ul><ul><ul><li>For Daimler strength is luxury car, innovation small car, average profit per vehicle is higher than GM, Ford & Chrysler. </li></ul></ul><ul><ul><li> Low cost </li></ul></ul><ul><ul><li> For Chrysler strength is low price car, light truck, </li></ul></ul><ul><ul><li>pickups and minivan. </li></ul></ul><ul><li> </li></ul>
  11. 12. <ul><li>:After Merger: </li></ul><ul><li>  At the time of merger Daimler sell fewer </li></ul><ul><li> vehicle than Chrysler but earn high revenue. </li></ul><ul><li>  Chrysler CEO speaks fluent English, German, </li></ul><ul><li> French & Italian and had already worked in </li></ul><ul><li> GM, BMW & Ford. </li></ul><ul><li>  Other hand Daimler’s CEO worked in U.S. & </li></ul><ul><li> South Africa. </li></ul><ul><li>  After merger it prove to be strength of the </li></ul><ul><li> company. </li></ul>
  12. 13. <ul><li>Weakness: </li></ul><ul><li> It focuses only luxury segment in only </li></ul><ul><li> European countries. </li></ul><ul><li> High priced position. </li></ul><ul><li> Lack of product for Asian market. </li></ul>
  13. 14. <ul><li>Opportunity: </li></ul><ul><li> To introduce new model </li></ul><ul><li> Focus on new segment </li></ul><ul><li> To overcome trade barriers. </li></ul><ul><li>Threat: </li></ul><ul><li> New entrance </li></ul><ul><li> Change in technology </li></ul><ul><li> Government Policy </li></ul>

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