Daimler Swot Analysis
Daimler Swot Analysis

Daimler Swot Analysis

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  • Pages: 7 (3434 words)
  • Published: October 25, 2017
  • Type: Swot Analysis
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Daimler AG ( Daimler or “the company” ) is engaged in the development and fabrication of assorted automotive merchandises. chiefly rider autos. trucks. new waves. and coachs. The company besides provides fiscal and other services associating to its automotive concerns. Daimler chiefly operates in North America and Western Europe. It is headquartered in Stuttgart. Germany and employed 271. 370 people as on December 31. 2011. The company recorded grosss of E106. 540 million ( $ 148. 346. 3 million ) in the fiscal twelvemonth ended December 2011 ( FY2011 ) . an addition of 9 % over FY2010. The operating net income of the company was E8. 755 million ( $ 12. 190. 5 million ) in FY2011. an addition of 20. 4 % over FY2010. The net net income was E5. 667 million ( $ 7. 890. 7 million ) in FY2011. an addition of 26 % over FY2010.

KEY FACTS

Head Office Daimler AG Mercedesstrasse 137 70327 Stuttgart DEU 49 711 17 0 49 711 17 94022 hypertext transfer protocol: //www. Daimler. com

Phone Fax Web Address

Gross / turnover 106. 540. 0 ( EUR Mn ) Financial Year End Employees Stuttgart Ticker Frankfurt Stock Exchange Ticker December 271. 370 DAI DAI

Daimler AG © MarketLine

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Daimler AG
SWOT Analysis

SWOT ANALYSIS

Daimler is engaged in the development and fabrication of assorted automotive merchandises. chiefly rider autos. trucks. new waves. and coachs. The company besides provides fiscal and other services associating to its automotive concerns. Daimler has a strong trade name acknowledgment. which gives it important competitory advantage and enables it to register higher gross revenues growing in domestic. every bit good as in international markets. However. intense competition presents a important hazard to the co

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mpany’s ability to heighten its gross per vehicle and keep its market portion.

Strengths

Strong trade name acknowledgment and market portion Extensive production and gross revenues web Strong focal point on research and development Strong public presentation of Daimler trucks in Japan Opportunities Increasing demand for autos in Asia Pacific Poised to profit from the turning demand for intercrossed electric vehicles Strategic cooperation with Renault-Nissan Accelerating planetary truck market

Failings

Merchandise recalls indicates diminution in merchandise quality Legal proceedings probably to halter repute Heavy debt could restrict growing Threats Competitive force per unit area in the automotive markets Stringent environmental ordinances Foreign currency fluctuations

Strengths

Strong trade name acknowledgment and market portion Daimler is one of the taking automotive companies in the universe. The company holds a portfolio of strong trade names in the automotive industry. Its trade names include Mercedes-Benz. Smart. Maybach. Freightliner. Mitsubishi Fuso. Western Star. Setra. Orion. and Thomas Built Buses. These trade names are among the strongest. most desirable premium trade names in the universe. For case. in 2011. Mercedes-Benz was ranked as the Germany’s strongest automotive trade name harmonizing to a recent survey by industry experts.

Through the survey. the industry experts assessed the public presentation of all the major automotive trade names sold in Germany in six classs: trade name image. market strength. client satisfaction. merchandise strength and vehicle quality. environment. and safety. The company’s strong trade name image gives it important competitory advantage and helps it to register higher gross revenue

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growing in domestic. every bit good as in international markets.

Daimler AG © MarketLine

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Daimler AG
SWOT Analysis

In add-on. Daimler holds important market portion. For illustration. the company’s Mercedes-Benz autos section holds a 5 % portion of the Western European market. 1. 9 % portion of the US market. 1. 4 % of the Chinese market. and 0. 9 % in Nipponese market. Similarly. Daimler Trucks hold 37. 5 % market portion in Germany. 22. 3 % portion of the Western European market. 25. 2 % portion of the Brazilian Market. and 20. 8 % portion of the Nipponese market. Mercedes-Benz Vans holds 18 % of the Western European market and 28. 1 % of the German market. Additionally. Daimler Buses has a market portion of 27 % in Western Europe. 50 % market portion in Germany. and 43. 1 % market portion in Brazil. Strong trade name acknowledgment allows Daimler to bear down premium monetary values than its rivals and therefore register comparatively higher borders. In add-on. robust market portion across different geographicss gives Daimler a competitory advantage over its equals and helps it to keep a niche in the market topographic point.

Extensive production and gross revenues web Daimler has a diversified geographic presence with production installations in 18 states worldwide. Daimler operates a sum of 66 production locations worldwide. The company owns 29 locations in Europe. 17 locations in the North American Free Trade Agreement ( NAFTA ) part. six locations in Latin America ( excepting Mexico ) part. three locations in Africa. and eight locations in Asia. The company is actively involved in fabrication autos. coachs. new waves and trucks through these locations. During FY2011. Daimler produced 2. 137. 243 vehicles worldwide. Strategic placement of the company’s production installations shields the company from unanticipated concern hazards originating from any one location and helps in uninterrupted flow of production. In add-on. the company besides has an extended gross revenues web with about 8. 000 gross revenues mercantile establishments worldwide.

Daimler operates 4. 008 gross revenues mercantile establishments in Europe. 1. 427 gross revenues mercantile establishments in the NAFTA part. 593 gross revenues mercantile establishments in Latin America ( excepting Mexico ) part. 333 sale mercantile establishments in Africa. 1. 596 sale mercantile establishments in Asia. and 271 gross revenues mercantile establishments in Australia/Oceania part. During FY2011. the company sold 2. 111. 106 vehicles worldwide. Such an extended production and gross revenues web helps Daimler to turn to the billowy demand of vehicles across the Earth in a more efficient mode. which in bend allows it heighten its grosss. Strong focal point on research and development Daimler strongly focuses on research and development ( R & A ; D ) to spread out its merchandise portfolio and to better the functionality. quality. safety. and environmental compatibility of its merchandises.

The company’s R & A ; D attempts are directed at developing new merchandises and procedures and bettering the capablenesss of bing merchandises. Daimler invested E5. 634 million ( about $ 7. 844. 8 million ) on R & A ; D in FY2011. stand foring 5. 3 % of the entire net gross

revenues. The company employs about 23. 200 employees to develop sustainable and advanced merchandises. Daimler has a portfolio of over 21. 000 rational belongings rights and a wide spectrum of hallmarks and protected designs including 2. 175 patents. In 2011. the company launched a new series of four-cylinder gasolene engines. The burning processes of these engines are based on the 3rd coevals of the Mercedes-Benz direct fuel-injection engineering. which was introduced in 2010 in the BlueDIRECT V6 and V8 engines. In add-on. Mercedes-Benz presented its first electric vehicle with a scope extender. the B-Class

E-CELL PLUS construct auto in 2011. The combination of electric thrust and gasolene engine in the new auto ensures suitableness for both day-to-day usage and long-distance drive. Its energy storage unit is a lithium-ion battery that allows up to 100 kilometres of locally zero emanation drive. Furthermore. Daimler is besides be aftering for technological developments in the luxury section with its F125! research auto. In this vehicle. Daimler is be aftering for a zero-emission drive with H. thereby stressing the potency of H2 as an energy beginning for the hereafter. The company’s strong R & A ; D focal point has enabled it to develop advanced vehicles and engineerings. which gives it an advantage over its equals in a competitory market place.

Strong public presentation of Daimler trucks in Japan Daimler trucks section has seen a important growing in its gross revenues in the past twelvemonth in Japan irrespective of the natural catastrophe in Japan doing production to be suspended at Fuso’s workss. As a consequence of efficiency hiking steps. the company was able to return to high degrees of production in June 2011. despite supply constrictions and a hard market environment. Continuing Reconstruction attempts in Japan have brought an increased demand for transit services in their aftermath. and therefore besides a greater demand for commercial vehicles.

Production breaks caused by procurement troubles with the company’s providers were closely examined by squads of experts at Fuso. who besides actively helped to work out the related jobs. As a consequence of this attack. Fuso managed to sell 147. 700 vehicles in 2011. registering an addition of 5 % over 2010. The Nipponese market accounted for 27. 000 of these unit gross revenues. stand foring an addition of 9 % . Additionally. due to a great client response to the Fuso Canter. Daimler was able to significantly increase its portion of Japan’s light-duty truck section to 23. 5 % . Such public presentation helps the company to hike its gross base and besides strengthens its geographical presence in Japan.

Failings

Merchandise recalls indicates diminution in merchandise quality Daimler announced callbacks that cover some of its most popular theoretical accounts due to fabrication and design jobs. For case. in April 2012. Daimler Trucks North America. a subordinate of Daimler. recalled around 10. 000 Freightliner and Western Star trucks due to safety belt and maneuvering jobs. The company recalled up to 8. 747 late built Freightliner Cascadia trucks and Western Star 4900s. and 1. 000 Freightliner Cascadia and Business Class M2 theoretical accounts.

Similarly. in March 2012. Daimler Trucks North America ( DTNA ) recalled about

110. 000 Freightliner. Sterling. and Western Star trucks manufactured since 2006. The callback was a consequence of damaged engine fuel lines. Harmonizing to Daimler. the callback impacted vehicles utilizing Detroit Diesel EPA 07 and EPA 10. DD13. and DD 15/16 engines manufactured between January 2006 and February 2012. Thus. important merchandise recalls indicates diminution in merchandise quality which could negatively impact the consumer assurance in Daimler’s merchandises and could strive its gross revenues. Legal proceedings probably to halter repute The company and its subordinates were subjected to assorted legal proceedings. claims and governmental probes. For case. in 2004. Daimler was subjected to probes by the US Securities and Exchange Commission ( SEC ) and the US Department of Justice into possible misdemeanors by the company of the anti-bribery. record-keeping. and internal-controls commissariats of the US Foreign Corrupt Practices Act ( FCPA ) .

In relation to this instance. in 2010. Daimler was found guilty for go againsting the FCPA Torahs. which resulted in the company paying mulcts and punishments of $ 93. 6 million and agreed to spill net incomes of $ 91. 4 million. In add-on. Daimler’s Russia-based subordinate. Mercedes-Benz Russia and Germany-based subordinate. Daimler Export and Trade Finance were found guilty for go againsting the anti-bribery commissariats of the FCPA. As a consequence. Mercedes-Benz Russia paid a mulct of $ 27. 4 million. while Daimler Export and Trade Finance paid a mulct of $ 29. 1 million. Similarly. in January 2011. the European Commission ( EC ) carried out antimonopoly probes of European commercial vehicle makers. including Daimler. If antimonopoly violations are discovered. the EC can enforce considerable mulcts depending on the gravitation of the violation.

Such legal proceedings adversely impact the repute of the company besides ensuing in immense fiscal punishments and repeat of such cases in hereafter could negatively impact the company’s fiscal place. Heavy debt could restrict growing In FY2011. Daimler had entire outstanding debt of E62. 167 million ( $ 86. 561. 3 million ) as compared to E53. 682 million ( $ 74. 746. 8 million ) in FY2010. This heavy debt could coerce the company to apportion a considerable part of hard currency flows from operations to debt service payments ; limit the company’s ability to obtain extra funding ; and lose advantage against its rivals who may hold less debt. Further. if the company fails to bring forth sufficient hard currency flow from operations to serve its debt. it would coerce the company to cut down or detain capital outgos. sell assets. seek extra capital or restructure or refinance its liability. further impacting its public presentation.

Opportunities

Increasing demand for autos in Asia Pacific The Asia-Pacific new autos market has experienced fluctuating growing in recent old ages. After a slowing in 2011. the market is predicted to see strong growing until the terminal of the prognosis period. Harmonizing to MarketLine ( a unit of Informa plc ) . the Asia Pacific new autos market is expected to bring forth grosss of about $ 543 billion in 2012. In add-on. MarketLine forecasts the public presentation of the new autos market to speed up and enter grosss

of $ 783. 8 billion in 2015. an addition of 44. 3 % compared to 2012. In add-on. MarketLine besides estimates that the ingestion volumes of the Asia Pacific new auto market is expected to turn from 25. 7 million units in 2012 to 35. 5 million units in 2015. an addition of 38. 1 % from 2012. Daimler has a important presence in Asia Pacific including production installations in states such as China. Japan. Indonesia and Vietnam.

The turning demand for new autos in the Asia Pacific part therefore represents an chance for the company to capitalise on this market and spread out its grosss and net incomes. Poised to profit from the turning demand for intercrossed electric vehicles The world-wide demand for electric vehicles ( EVs ) and plug-in intercrossed vehicle ( PHEV ) is steadily turning estimated to turn systematically over the following few old ages. Harmonizing to industry beginnings. the gross revenues of EVs are expected to turn to 2. 5 million vehicles per twelvemonth by 2020 and PHEVs are expected to make gross revenues of about 5 million by 2020. By 2030. gross revenues of EVs are projected to make 9 million and PHEVs are projected to make about 25 million.

The ultimate mark is to accomplish 50 million gross revenues of both types of vehicles yearly by 2050. Rising energy costs and increased emanations ordinances are likely to increase the demand for HEVs. as intercrossed engines are more fuel efficient and less fouling than conventional gasolene and Diesel engines. Cost disparities between HEVs and conventional light vehicles are expected to worsen as production volumes addition. The primary markets for HEVs will be within the US. Western Europe. and Japan. although the quickly turning Chinese market is besides expected to see comparatively strong demand for these fuel efficient and environmentally friendly vehicles.

Daimler has a strong focal point on developing intercrossed vehicles. The company has successfully launched Mercedes-Benz B-Class F-CELL. Mercedes-Benz A Class E-CELL. Mercedes-Benz Vito E-CELL. Mercedes-Benz S 400 BlueHybrid. Sprinter Plug-In-Hybrid. Mercedes-Benz E320 BLUETEC. and smart fortwo electric thrust. In add-on. Daimler signed an understanding with BYD Company to set up a joint venture in China for the industry of electric vehicles. In add-on. the company is besides in the initial phases of developing F125! . an emission-free single mobility auto. Hence. the quickly turning demand for HEVs will supply the company an chance to capitalise on its bing place in this section and increase its grosss. Strategic cooperation with Renault-Nissan Daimler is focused on taking assorted enterprises to spread out its presence.

In this context. in April 2010. the company signed a wide strategic cooperation with Renault-Nissan Alliance that would enable both groups to profit from a scope of concrete undertakings. As portion of the trade. Renault-Nissan Alliance acquired 3. 1 % interest in Daimler and Daimler acquired 3. 1 % interest in each in Renault and Nissan. The partnership is aimed at collaborating on the smart fortwo. a smart trade name four-seater. and the following coevals of the Renault Twingo.

It besides includes powertrain sharing and co-development on future undertakings with applications across rider autos and

light commercial vehicles. including sharing and co-development of Diesel and gasolene engines from the Renault-Nissan Alliance. to be used in the new smart and Renault Twingo and to be adapted and modified with Mercedes-Benz features for its new coevals of premium compact autos ; sharing of gasolene and Diesel engines between Daimler and Infiniti ; and sharing of a Renault-Nissan Alliance Diesel engine and transmittal for the Mercedes-Benz Vito. The partnership besides focuses on join forcesing in the field of light commercial vehicles. The partnership is expected to supply cost benefits to the company on fuel-efficient and green engineerings as stricter environmental ordinances are bit by bit introduced over the following decennary. In add-on. the partnership will supply Daimler an chance to beef up its smart branded little autos concern.

Furthermore. this cooperation increases the fight of all spouses through a significant addition in volumes. taking to economic systems of graduated table and cost sharing in development. This will besides assist in widening and beef uping the company’s merchandise offering. efficient use of all available resources and developing the advanced engineerings for the coming decennary. Accelerating planetary truck market The planetary trucks market entered a period of crisp diminution from 2008 to 2009 before retrieving with strong. dual digit growing in 2010. The market is expected to keep positive degrees of growing from 2011 through to the terminal of the prognosis period in 2015.

Harmonizing to MarketLine. the planetary truck market is expected to enter a entire value of about $ 592 billion in 2012 and is expected to turn to a value of $ 774. 6 billion in 2015. Similarly. harmonizing to MarketLine. the market ingestion volumes are expected to enter about 20 million units in 2012 and the volumes are expected to speed up to a record about 26. 1 million units in 2015. Daimler has a important presence in the planetary truck industry. It manufactures fuel-efficient little. medium and heavy-duty trucks.

In add-on. company’s demand for medium and heavy-duty trucks grew reasonably in 2011. The growing was chiefly driven by the markets of North America. Western Europe and Japan. In the NAFTA part. demand for trucks recovered strongly and increased by a good 40 % . chiefly due to the demand to replace older vehicles. Hence. the speed uping planetary truck market would function as an chance for Daimler to foster heighten its market portion.

Menaces

Competitive force per unit area in the automotive markets The planetary automotive markets are extremely competitory. Daimler faces strong competition from automotive makers in its assorted markets. The competition among assorted car participants is likely to escalate in visible radiation of go oning globalisation and consolidation in the world-wide automotive markets.

The factors impacting competition include merchandise quality and characteristics. safety. monetary value. environmental public presentation. every bit good as efficiency of merchandise development and fabrication system. constitution of gross revenues and service systems and gross revenues finance. The company faces strong rivals. some of which are larger and may hold greater resources in a given concern country. Some of its cardinal rivals are AB Volvo. BMW. Fiat. Ford Motor. General Motors. Honda Motor. Isuzu Motors. PSA

Peugeot Citroen. Tata Motors. Toyota Motor. and Volkswagen. Many makers. including Daimler. have comparatively high fixed labour costs every bit good as important restrictions on their ability to shut installations and cut down fixed costs. To countervail these high fixed costs. some of the company’s rivals have responded by trying to sell more vehicles by adding vehicle sweetenings. supplying subsidised funding or renting plans.

They are besides offering option bundle price reductions. other marketing inducements. and are cut downing vehicle monetary values in certain markets. These actions have had. and are expected to go on to hold. a important negative consequence on Daimler’s vehicle pricing. market portion. and runing consequences peculiarly on the low terminal of the market. It besides presents a important hazard to the company’s ability to heighten its gross per vehicle and keep its market portion. Stringent environmental ordinances The European Union ( EU ) Commission and the EU Parliament have adopted a directive that establishes progressively rigorous emanation criterions for rider and light commercial vehicles for theoretical account old ages 2005 and thenceforth ( Euro 4 ) . Under the directive. makers will be responsible for the emanation public presentation of these vehicles for five old ages or 100. 000 kilometres. whichever occurs foremost. A more rigorous emanation criterion ( Euro 5 ) was adopted by EU legislative organic structures and became effectual from 2009.

The EU Commission intends to specify even more rigorous emanation criterions ( Euro 6 ) . which. if adopted. will go compulsory around 2014 or 2015. Similarly. the Kyoto Protocol for the decrease of nursery gases came into consequence in 2005. As a consequence. Japan is now faced with the dashing undertaking of cutting back nursery gases by 6 % from the 1990 degree by 2012. The emanation criterions adopted across assorted parts can ensue in extra costs for merchandise development. proving. and fabricating operations of Daimler. Foreign currency fluctuations Daimler is an endeavor with world-wide operations. Its concerns are conducted in a assortment of currencies. from which currency hazards arise.

The company generates about 63. 1 % of its grosss from markets outside Europe. Since a important part of the company grosss are generated outside the Euro currency part and the procurance of production stuff and support are besides organized on a world-wide footing. the currency hazard is an highly of import factor for Daimler net incomes. Any alterations in demand and refinancing conditions. fluctuations in exchange rates have a important impact on the company’s net incomes.

This related in peculiar to the US Dollar. the Nipponese Yen. the British Pound and the Chinese Renminbi. The value of the company’s equity investing in foreign states may fluctuate based upon alterations in foreign currency exchange rates. These fluctuations. which are recorded in a cumulative interlingual rendition accommodation history. may ensue in losingss in the event a foreign subordinate is sold or closed at a clip when the foreign currency is weaker than when the company ab initio invested in the state. Any unfavourable alteration in other currencies would therefore hold an inauspicious impact on the profitableness of the company.

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