Mercedes Benz company
Strengths
Mercedes Benz is among the main companies in the motor vehicle industry. It has various strengths that allow it to thrive in the competitive motor vehicle market place. The strengths include but are not limited to the successful track record of innovating new products, steady brand portfolio, highly skilled personnel, along with extraordinary performance in the new market. The company has established proficiency at entering the unprecedented markets, and this habitually makes the firm to be successful. Entering new markets has considerably enabled Mercedes Benz to enjoy a colossal revenue stream that has promoted its performance and sustainability in the industry. Likewise, the strong brand portfolio has dramatically assisted the firm in expanding into new product categories, which consequently has promoted the competitive advantage of Mercedes Benz.
Weaknesses
The limitations of the company include poor financial planning, poor product demand forecasting, inability to handle the problem of new entrants along with the gap in the product range sold by the corporation. The firm is poor at fiscal planning, and the asset to liquid ratio of the firm suggests that Mercedes Benz can utilize the cash more effectively than what the firm is currently doing. Similarly, the gap in the commodity range offered by the company habitually provides the competitors with an opportunity to enter the market and offer substitute commodities to the products offered by the company.
Opportunities
The opportunities enjoyed by the company encompass the starting up of fresh markets because of the government consensus, new environmental policies, new taxation policies together with the declined inflation rate. The new environmental regulations are anticipated to establish a fair playing field, which will eventually offer the company an opportunity to its advantage in the latest automation and grasp market share in the current product category. Moreover, a new taxation law can influence the way of conducting business, and this can open fresh chances for the company to improve its profitability. Don't use plagiarised sources.Get your custom essay just from $11/page
Threats
The threats faced by the company entails the development of new technologies by the competitors, intensive competition, change in the buying behavior of the consumers, the rising strength of the local distributors and the liability laws. Intense competition from the rivals of the company has pilled pressure on the profitability and the overall sale of Mercedes, and this has adversely affected the performance and profit margin of the company.
Audi SWOT Analysis
Strengths
The capabilities of the company allow the firm to penetrate into the new markets along with enabling the company to protect its market share. The strengths of Audi, therefore, include a steady free cash stream, solid dealer community, steady distribution pathway together with the excellent operation in the new markets. The company has established skills in accessing fresh markets where it effectively utilizes the market to build a new revenue stream, which has resultantly helped in fostering the sustainability of Audi in the motor vehicle industry. The firm has created a compact dealer community through inducing a culture among the suppliers and dealers where the dealers promote the production of the firm.
Weaknesses
The limitations of Audi include a high depreciation rate in the workforce, inability to tackle the challenge of new entrants, limited success outside the main enterprise, need for more investment in automation, and the lack of capacity to integrate the company with the distinct work culture. The company has faced several hindrances in moving forward to other products segment, and this has dramatically lowered its success outside its main business. The firm also requires to allocate more money in automation to synchronize the process across the board since its current assets in technology do not match with the vision of the company.
Opportunities
The opportunities available for Audi include decreasing the cost of transportation caused by the decline in shipping prices, stable free cash flow, availability of the new technologies for the company, new tendency in the behavior of the consumers, and environmental policies. The presence of new technologies offers an opportunity for the firm to practice a new pricing approach in unprecedented markets to allow the company to retains its loyal consumers with its products. Likewise, a stable free cash stream offers Audi with the chance of investing in the adjacent product segment to enhance its revenue flow.
Threats
The threats faced by the firm include the shortage of skilled workforce in the specific universal market, the varying demand of the highly profitable products, rising raw materials, and the liability laws in different nations. The need for valuable products habitually keeps on since it is sessional, and it constitutes a threat to the gainfulness of Audi. Additionally, the rising material threatens the profitability of the company while the lack of skilled personnel threatens the steady growth of the profit of the company in the markets with a shortage of workforce.