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Daimler AG Company Analysis

Daimler AG is a renowned automotive manufacturing and engineering company that engages in the production, development and distribution of trucks, cars, vans and the management of the Daimler Group, in Germany. Its different automotive lineups include the Daimler Trucks, Mercedes-Benz Cars, Daimler Buses, Mercedes-Benz Vans, Daimler Financial Services. Originally AG founded in 1926, it was a German manufacturing company that produced internal combustion engines and motor vehicles, after which it entered a Joint Venture with Benz to produce cars of their lineup. Chrysler Corporation and Daimler-Benz in 1998, announced a cross-border deal that was at the time considered the world’s largest, and as a result Daimler-Chrysler AG became the new company name. But later on the parent company name was changed to “Daimler AG”. Today, in over 20 countries and 8500 sales centers, Daimler AG boasts of one of the largest production facilities in the world (Reuters, 2018).

Daimler product segments and lineup includes automotive vehicles of Mercedes Benz, ranging from various A Class to B Class Models. They also offer SUVs, coupes, roadsters, luxury sedas and convertibles. Their trucks segement manufactures heavy vehicles under the brand names of Mercedes-Benz, Western Star, Freightliner, FUSO and BharatBenz. Buses, having over 30 production units in the NAFTA) region. It also produces commercial vans, the Citan urban delivery and the Vito mid-size van, produced in over nine different regions. Their bus segment under its various brand names, offers fully built-up buses including Setra and MercedesBenz. The ‘Daimler Financial Services’ division is responsible for sales and support in 40 countries today, also offering fleet management services in Europe (Reuters, 2018).

Owing to its brand image, the name itself gives Daimler AG a competitive advantage. Besides that it has a unique standardized layout, that all connected factories use on a shared cyber network, the data is monitored and collected in real time to increase their production efficiency. Data from integrated factories in Beijing, Tuscaloosa or Sindelfingen allows Daimler to introduce common procedures and standards in order to boost efficiency. For them to move from location A to location B, a single product line hardly takes 6 months. This flexibility and quick response to changing markets provides them a decisive and distinct competitive advantage (Ilona Wissenbach, 2015). Daimler’s growth in emerging markets such as India, China, Russia or Brazil while being able to offer many parts distribution and aftermarket overlap, with similar engine offerings also give it a decisive competitive advantage (TodaysTrucking, 2014).

Daimler’s ability and decision to delay implementation of new EU refrigerants according to MAC directive, also allowed it to save millions of euros in the previous few years providing it a huge competitive advantage over other manufacturers who had already made investments for compliance. (Gray, 2013).

References

Gray, J. (2013, July 30). Italian MEP calls for emissions ban. Retrieved from Jules Gray: https://www.worldfinance.com/markets/italian-mep-calls-for-daimler-ban-over-emissions-directive

Ilona Wissenbach, E. T. (2015, June 17). Networked factories key to Daimler’s productivity drive. Retrieved March 15, 2018, from Reuters: https://www.reuters.com/article/us-daimler-mercedes-production/networked-factories-key-to-daimlers-productivity-drive-idUSKBN0OX1XY20150617

Reuters. (2018). Daimler AG: Overview. Retrieved March 15, 2018, from Reuters: https://in.reuters.com/finance/stocks/company-profile/DAIGn.DE

TodaysTrucking. (2014, August 1). New Daimler trucks boss ready to tackle NA market challenges. Retrieved from Today’s Trucking: https://www.todaystrucking.com/new-daimler-trucks-boss-ready-to-tackle-na-market-challenges/

 

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