Mercedes Benz Case Study
2. Easy availability of spare parts in the market
3. Special designer cars for women.
1. Availability of low cost and more efficient domestic and Japanese cars in the market
Porters Five Forces
Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. Based on the information derived from the Five Forces Analysis, management can decide how to influence or to exploit particular characteristics of their industry. Porter's five forces for Mercedes-Benz Company are:
1. Bargaining power of suppliers: Suppliers of Mercedes supplies various parts of the cars such as engine parts and mounts, steering and transmission parts etc.
2. Bargaining power of customers: customers have a wide option of cars in the market. Some of these cars are low cost and high efficiency cars. Therefore consumers bargain for the price and quality of cars.
3. Threat of new entrants: new entrants could change major determinants of the market environment (e.g. market shares, prices, customer loyalty) at any time. There is always a latent pressure for reaction and adjustment for existing players in this industry.
4. Threat of substitute: there are many