Introduction –
Mercedes-Benz business model focuses on manufacturing luxury automobiles, offering a range of high-quality vehicles and services worldwide. The journey from making the horse cart the first motor car with a motor engine to today’s self-propelled motor tax is a testimony to the creation of Mercedes-Benz. Today Mercedes-Benz car is known as luxury car all over the world. The revolution of the electronic car sees a lot of changes in the auto sector, in which changes are seen in the concept of motor engine. The international companies that we see in the auto sector, in which Mercedes Benz is considered to be the oldest company.
Safety and great features have been the most important part of Mercedes-Benz’s brand value since its inception and is seen as a luxury car. In the success of any entrepreneur, if he does not have a Mercedes Benz car, then his success is considered incomplete, such a belief is seen in the society. With a case study of Mercedes Benz, we will try to understand its marketing, manufacturing process and success formulas.
Mercedes Benz It is considered to be an important international brand of Germany’s auto sector, in which it will try to know how it has established its dominance in the market over time. How Mercedes Benz got this name of the company and which people have contributed significantly to the success of the company. Through this article, we aim to inspire those who want to have some dreams in the business field through case studies and biographies of successful people.
Mercedes Benz Company History –
The world’s first motor car was built in 1886 by converting a horse carriage into a motor car for the first time through Karl Benz. Whose value was 150 US dollars, which if seen in today’s date can be 4544 US dollars. The Mercedes Benz has been created by the company of Gottlieb Daimler Inn and their co-operative engineer Wilhelm Maybach using the technology of the petrol engine.
Emil Jellinek, an entrepreneur and his daughter’s name was Mercedes and he was a part of Daimler Motoren Gesellschaft, which later led to the company’s important brand name Mercedes-Benz. Emil used to market the company’s brand in this high society and had contacts with the Aamir people of the world, which he used to sell these vehicles initially.
Before the First World War, these two companies used to work separately, but after this world, due to the economic condition of Germany, both companies merged and in 1926 Mercedes Benz this brand got to see the world for the first time. The company put this brand in front of the world as its luxury brand and in other truck production in India, the company has successfully established its product under the name BharatBenz.
Karl Fredrick Benz (1844-1929) –
Karl Benz’s father passed away when he was only two years old when he was born, his mother gave him good education and made him a mechanical engineer, despite the adverse economic situation. 1871 He was trained by his experience and skill as a workshop foreman and a good designer. That was the era of horse carriage which was the most modern means of movement, which Karl Benz dreamed of converting into a motor car.
From 1878 he was working on a gasoline two-stroke engine and in the first month of 1879 he succeeded in it. Seeing this success, he established the Mannheim Gas Engine Factory in October 1882, in which his share was only 5 percent. Due to which he managed to keep his influence in this company only in technical matters, but he could not do anything in the rest of the work of the company.
In January 1883 he left this company and started working for another company, and this seal continued until he met Gottlieb Daimler. In 1906, he started his own company named Carl Benz & Sons. In 1912, he resigned from the post of Managing Director of this company and gave all the rights to his son. He was a member of the Board of Directors of Daimler Benz AG Company from 1926 to 1929.
Gottlieb Daimler (1834 -1900) –
Gottlieb Daimler was born in 1834 and began his training as a gunsmith in France. He completed his education in France and England and began his career as a draftsman in 1862. In 1863 he began working as a machine inspector, where he met Wilhelm Maybach, who would later become an inseparable part of Mercedes-Benz, and became well-known in the company as a skilled designer.
Resigning from his job in 1882, he worked at his own site to build a four-stroke engine, powered by gasoline, with the help of Maybach. He developed the internal combustion engine which is today known as Grandfather Clock. For this amendment, he put all his life’s capital at stake and then he needed more money. For which he started a company named Daimler Motoren Gaselshaft and solved this problem with other partners.
But later due to differences in purpose, Maybach and Daimler decided to leave the company. Later, when the company’s financial and technical condition deteriorated, it was decided to recall Maybach, but he refused to join the company without Daimler. So both were taken back to the company in 1895. Maybach later created the Phoenix engine, which became very popular and gave the company a new direction.
Business Model of Mercedes Benz –
The company is the most famous company in the auto sector, which has been important in the manufacture of motor cars, so the company has taken advantage of it well to increase its brand. The company is mainly seen as a luxury product which is much more expensive than other manufactured cars. Therefore, to differentiate the Mercedes car from the rest of the car production, the company has paid a lot of attention to the safety in the car, which sees the least human loss in a car accident.
Mercedes-Benz always tries to be at the forefront of technology, so in today’s technology era, the company has ventured from America NVEDIA, through which it is ready to see more and technology equipped vehicles in the market. The company is competing with companies like Germany’s BMW and Tesla in electric vehicles, so the company always has to be ready in terms of branding.
From cycles to trucks, a lot of production is done by the company, but Mercedes Benz has kept this brand separately for the luxury car production, which is dependent on the price and facilities. In truck production in India, the company started production under a different name, the main reason being that they would say that the car production should not be harmed by this. Therefore, from the very beginning, the company is always ready to be on top of the market from some important sources.
Success Strategies of Mercedes Benz –
Safety -Technology -Brand
Safety, Technology and Brand This has been the main driver of the company’s success for the last hundred years, and Mercedes Beige being this luxury brand, the company does not need to pay special attention to cost control. In the society, people who buy Mercedes Benz vehicles are seen as successful people in the society, this equation has been created by the company with its brand value. The company uses modern technology in safety for each of its vehicles, so this brand is a dream for all sections of the society.
Due to the highest adherence to the safety standards set in the auto sector, this brand is trusted in the logo and every successful person dreams of buying a Mercedes Benz. Because this brand belongs to Germany and nationalism was at its peak during Hitler’s time and through this we see that Hitler personally used Mercedes Benz. Since that time, many car models from Germany’s auto sector have been world-renowned for quality and technology.
Before the introduction of electronic vehicles in the market, it was considered necessary to have a modern engine in order to buy a car in the market, so Mercedes Benz from its inception has always kept this objective in mind to provide better engine to the customers than its competitor. But since the last few days, since the beginning of making electronic vehicles, computer technology has replaced engine technology, for which Mercedes Benz has ventured from a technology base company like NVIDIA and is ready to provide the best technology.
Major Competitors of Mercedes Benz –
- AUDI (Germany)
- Bayerische Motoren Werke – BMW (Germany)
- Porsche (Germany)
- Lamborghini (Italy)
- Bugatti (France)
- TESLA Motors (USA)
German companies have established their dominance in the auto sector through the best engine technology for the last 100 years. Talking about India, Japanese company Toyota has tried to compete with Mercedes-Benz in India. Mercedes Benz It is a luxury brand worldwide and is known for its high price tag hence it is not seen in the general car segment.
In India, the company has introduced itself as BharatBenz in the service sector like trucks and transportation, so that their luxury brand image remains in the car sector. The revolution of electric vehicles has changed all the equations of the auto sector and has prepared the market to develop vehicles like an electronic gadget like mobile in the future. Through which all the companies in the market are using computer technology for vehicles.
Therefore, the revision in the auto sector is going to be very important, for which the company has increased its revision budget for the last few years and has kept it up to 7 percent. In the future, computer technology in the auto sector is going to be the new medium to establish dominance in the market. Therefore, the company which was ruling the market before this is going to be a big turnaround now. The biggest example of which is the increasing demand for Tesla vehicles. Therefore Mercedes Benz Company is fully prepared for this.
EV Car Revolution & Mercedes Benz –
Mechanical Engine and Gasoline Engine It was earlier used in vehicles and the engine is the most important part for it, but in electrical vehicles through electrical motor, the vehicles were changed due to problems like air pollution and noise pollution. . The technology of engines was replaced by motor vehicles, due to which the companies which earlier had efficient engines of modern technology, used to dominate the company market.
Earlier in the auto sector, the German company had built its dominance in the market and these companies have contributed a lot in the manufacture of vehicles for the last 100 years. The problem of these vehicles has been that due to this, the amount of pollution has increased a lot since the last few years, due to which the rise in global temperature had become our problem, so it was important to make electric vehicles synonymous as soon as possible. Therefore, in view of this change, Mercedes-Benz has made changes in its policy immediately.
The changes we have seen from computer to Android mobile since last 20 years, similar changes are going to be seen in the auto sector in the next 20 years. In view of this, the company has prepared itself for the changing market by doing business venture with the American technology base company NVIDIA and using the strength of its luxury brand, the company is ready to provide modern EV vehicles to the customers through computer technology. .
NVIDIA Technology & Mercedes Benz –
Mercedes-Benz President Ola Kallenius and NVIDIA CEO Jensen Hong have entered into this venture in 2024 to put the company ahead in the future of electronic car competition through automation. NVIDIA This company is the world’s leading company which is considered to be the technology sector company of America. Electronic vehicles have seen the biggest change in the auto sector and the companies which were considered to be leading in the auto sector before that, it is going to be very difficult for them to compete without technology in future.
Recognizing this, Mercedes Benz Company has entered into this agreement with NVIDIA Company. What will be the strategy for Mercedes-Benz cars for the next few years will be decided jointly by the chief executives of both the companies. The NVIDIA company is going to work on how technology and how Mercedes-Benz cars can be improved through automation. Through the NVIDIA DRIVE platform, this tech company will work to give a direct picture of what the next generation car will be for the Mercedes-Benz company.
Like the Nokia company did not recognize the change in the mobile sector and took pride in being the best company in the world. As a result, Huawei’s Android and iOS technology ended the world’s largest mobile company like Nokia. In view of this, considering the future of electronic vehicles, Mercedes company has done this deal keeping in view the changes in the future. Their aim is to make the company remain the best company in the coming future.
Bharat Benz & Mercedes Benz –
The market of India is an accessible option for international companies to establish business in many other countries, in which whatever legal process is done, it has to be done once. Mercedes Benz This brand is seen as a luxury brand in India. Whose price is to see products with prices above 20 -30 lakhs. Therefore, it was quite a risky task to enter the market in the truck sector with bigger vehicles than these cars. The potential for this to affect the brand value of the company was quite high.
Therefore the company created a company in India under the name BharatBenz to launch its production in the field of carriage service in India, which will only produce in this area. This company was established keeping in mind that most of this Mercedes Benz will not have any effect on this expensive luxury brand. For this, the company tried to know through the people driving trucks through surveys across the country that how trucks should be in India.
For this, keeping in mind its own reputation, the company conducted this survey with the aim of doing something different from the proposed truck business. Through this, the company has done the work of providing services in the production of vehicles according to the problems faced by the truck drivers. Before this, the rest of the companies could not even imagine the air condition cabin, the company tried to give it at the same price and used high technology keeping in view the roads of India, due to which the company has created a different place in the proposed market.
Features of Mercedes Benz Company –
- Mercedes Benz This company started with two names which are different, in which Mercedes this name is the name of his daughter Emil Jellinek and Benz this name was given to the company after the name of Karl Benz.
- The company spends 7 percent of its expenditure every year for expense revision.
- The most important reason for the success of the company is that the company’s safety, technology and brand run on this formula, due to which the company has carved a niche for itself in the market.
- For the production of electronic vehicles, the company has tied up with the company NVIDIA, through which they are going to use artificial intelligence in car production.
- Mercedes Benz is seen as a Bharat status symbol and this car is quite expensive, so to enter the truck production in India, the company created a separate company under the name of BharatBenz so that Mercedes Benz does not harm this brand.
- Mercedes company focuses more on modification to make better vehicles in the international market than competitors like Tesla, BMW and Audi.
Conclusion –
Mercedes Benz Company’s vehicles This is seen as a luxury brand and is considered a symbol of success. The company has given 100 years to make such a statue. People who buy it consider it a dream come true experience in India. Through this article, we have tried to know how the company was established and which people were more involved in its establishment.
The company has seen a lot of bad times after the Second World War and its journey from emerging to becoming the world’s most powerful auto sector company has been very important. Through safety, status, and brand, the company has been able to differentiate itself from the rest of the competitors in creating a diverse clientele. The company has been criticized through many cases in the matter of pollution, but the company has made its product successful in the market by improving it too.
The manufacturing of electric cars has seen a complete change in the production process and before that the companies which were on the top in the market due to modern and efficient engines will have to make a different strategy in which the Mercedes company has taken the technology company along with the future policy. has created. This brand is a brand connected with the sentiments of the logo, which is a reliable and luxury brand, which we get to see a different customer segment, we have tried to study it through this article.
