Vision: ”Reduce the amount of cars in the world to 10% (from 1,2 billion cars to 120 million cars)”
Mission: ”Everybody should be able to enjoy the Mercedes-Benz luxury!”
As a part of improving my vision and strategy building skills, I have decided to pick interesting random companies and generate quick vision, mission and strategic actions for the company. For the analysis I’m using traditional SWOT analysis and strategy canvas that was introduced by Roman Pichler: link
Picking up the companies I’m using random company lists found in here: link. For the first company I decided analyze was Mercedes-Benz. That company is interesting one because there is ongoing change in car industry for the electric motors. Mercedes-Benz is traditional luxury company that is moving not that fast.
Strengths:
- Luxury brand having premium product
- Expensive quality brand image
Weaknesses:
- Old fashioned
- Delivering big cars using mostly diesel
Opportunities:
- Electric transformation
- Trend in ride share and less cars
Threats:
- Not responding to big change in industry
- Buyers are not that dynamic either
Based on the SWOT points, Mercedes-Benz should promote environment friendliness by producing less but high quality cars instead of electric transformation for now. They could easily change their used fuel to renewable ethanol. Also trend in ride share industry could benefit Mercedes-Benz by providing long lasting cars with less models and high availability for spare parts. This justifies high price for their cars also in the future when customers are not willing to buy expensive cars for the private use.
Based on the strategy canvas and findings, vision and mission for the long term could be stated as added in the beginning of the post. Also immediate actions that are needed to make the strategy change are listed:
Immediate actions:
- Reduce the models significantly
- Run on renewable fuels (ethanol)
- Get rid of engines running on diesel