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What are the strategic issues in the case of 'Daimler Crysler' and the world automobile industry?
Member rating: No Rating | Words: | Submitted: Thu Jul 15 2004
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DiamlerChrysler Case Submitted in partial Fulfillment of the Requirements of the Strategic Management Course To Dr Deepak Kapur 15th July 2004 By Nishith Mohanty Nivedita Ahuja Nivedita Ramgopal Padmaja Ganeshan Parineeta Cecil Lakra WHAT ARE THE STRATEGIC ISSUES IN THE CASE OF 'DAIMLER CRYSLER' AND THE WORLD AUTOMOBILE INDUSTRY? The following could be stated as issues that face Daimler-Chrysler and the Automobile industry. 1. Technological challenges 2. Cost reduction 3. Excess capacity 4. Market Segment and Market positioning 5. Other challenges Technological changes: In the past, global leaders in car manufacturing had the competitive advantage of technology. They were technologically differentiated and advanced and their cars could offer features that their competitors could not. In the 21st century, designs and technologies have converged among manufacturers. The automobile giants like Daimler-Chrysler have to come up with new types of differentiation. The critical scale issues are related to the huge and increasing costs of new product development. The cost of developing new model is steeply increasing as a result...
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