A SWOT analysis measures internal and external environmental factors that must be deployed in the strategic form of earning maximization of profitability. Opportunities and threats are external factors that must be inferred for their impact on an organization. This part of the paper is explaining Opportunities, threats, and their relative relation with PESTEL factors. Organizational strategies are then arranged according to the given scenarios and opportunities for Mercedes Benz.
Opportunities
Hybrid and fuels efficient cars are being developed in the economies that pursuit an effort from Mercedes to enter new markets and sustain their current position. A global brand is an emerging trend in international markets. Mercedes Benz can move on in various cultures and markets to get more advantage for international branding opportunities. The automobile market is a luxurious market that has fast growth in all international and local markets. They must look for the marketing opportunities as available in all countries.
Suggesting and working in the Resources are available whereas markets are requiring highly effective managed resources are all levels. There will be a large level of opportunities leading towards market expansion and higher profitability in markets. New clean cars a source of higher profitability and technology compliance if they will work in all the markets. The Chinese market is booming for cars that allow them to sell their products in a more diverse and technology-oriented market. Features of Mercedes Benz are already established, the only need that is required is launching Mercedes Benz in the Chinese market (Rahim, 2013).
Threats
Fuels prices are increasing that causes’ automobile industry a lowering demand shift. Mercedes Benz is also facing it up to its severe limits. Competition is much more than anticipated from the industry analysts. Media marketing and direct marketing trends are increasing in international marketing. Segmentation techniques and switch over various market differentiation strategies provide an opportunity to sustain market position.
Government policies are increasingly tricky and getting more strict as ever they were for the automobile sector. There is increasing competition because a dominating and new Asian care market is moving towards the international level. Car taxes have been increased in America and Japan, for luxury cars that are causing a demotivation among luxury car lovers. There are other various cultural and social subtle levels of the factors that cause future profitability for Mercedes Benz.
Relation/Impact of PESTEL on opportunities and Threats
Politically, Mercedes Benz has scandals involvement but there are also stronger and more empowered viewpoints. Studebakers have a strong relationship with Mercedes Benz from 1958 to 1963. Their insolvency transferred all of the dealerships with Mercedes Benz. They have won the Award of sustainable organization and they are relisted as Average automobile by USA rating and recommended to the S-Class and E-Class communities in the USA. Economic trends traced back to their technology involvement and causing an increase in employment, removing inflation as well as deploying natural resources in a more sophisticated manner through providing Eco-friendly cars. In the listings of CO2 levels of the cars listing, Mercedes was listed as the worst manufacturer as it emitted 181 g and 188 g of CO2 based upon 14 manufacturers ’ analyses.
Producing at the global level, Mercedes is providing light commercial, passenger, and heavy commercial cars. In 2007, Mercedes Benz showed seven different hybrid models for cars. It provided a breakthrough in car classes. For legal issues, there is no boundary or issue created that can be related to the threats or opportunities. Government regulations are mandatory to be supported whereas in case of measuring up the legal history there was logo change in the Mercedes Benz model that thrived them for more transparent working. Environmental opportunities must be availed by all the organizations and automobiles. B-Class is greener than every company could be. Australian/pacific Mercedes Benz is working passionately for their CSR perceptions and responsibility. Technology assessment and measures are taken by Mercedes in all of the regions as they have to mentor the ranges and technical measures for their new models (Rabu, 24-03-2014).
Critics mainly lye with the strategies and their actions must be supported with their efficiencies and economic conditions. The next factor that has strong collaboration with Threats and opportunities is ecological or environmental factors. They are working for more effective outlooks whilst at the same time striving for the best input or pollution-free working. Starting from the uplifting in their strategies and an economic consultant, they are working in a more sophisticated manner. The more they are far away from their planning and assessment, the more they are suffering. They are mainly German manufacturers but they have launched their cars in many cultures. Some of them are giving good responses for their products whereas some of them are not. There is the continuous manner of the dealings and strategies in the alignment of the efforts. More specifically, there would be an additive edge for marketing and launching new products in various markets if all of the factors will be overcome through proper utilization of resources and available opportunities.
