BMW

vs.

MERCEDES BENZ

By,
Amogha Abbur
Bidoura Chakraborty
Deepak C N
Dilip K
Kajari Ghosh
AUTOMOTIVE INDUSTRY PROFILE
•History
•Auto motive market
•Crisis
•Strategies

Automotive market in India

•Its history
•Major players in the market
•Crisis in India
COMPANY PROFILE- MERCEDES BENZ
Mercedes-Benz : German manufacturer
 Division of parent company : Daimler AG
 CEO – Dieter Zetsche

Origin :
 Mercedes-Benz has it’s origins in Karl Benz's creation.
 The Mercedes automobile was first marketed in 1901 by Daimler.
 Merger between Karl Benz and Daimler in 1926.
VISION AND MISSION OF MERCEDES BENZ

VISION:

• To be more successful
• To meet the demand for future mobility
• To create everlasting value for our share holders, customers,
work force and society in general

MISSION:

•To give our best for customers.

QUALITY & PRODUCTION
Quality
 Mercedes-Benz had a reputation for its quality and durability.
 J.D.Power surveys demonstrated a downturn in reputation in this during the
late 1990s and early 2000s.
 Mercedes showed dramatic improvement by shifting from 25 th to 5 th place.
 It also received the Platinum Plant Quality Award for it’s Mercedes’
Sindelfingen, Germany assembly plant. 
 Along with it’s native Germany, Mercedes – Benz cars are also produced in
the following countries:- Argentina, Austria, Bosnia &Herzegovina, Brazil,
Canada, China, Egypt,USA,etc.
 Mercedes-Benz’s Product Portfolio includes, Passenger Cars, Sports Cars,
Electric Vehicles, Concept Models, Buses, Vans, Trucks & Bicycles.
INNOVATIONS & ACHIEVEMENTS
 The internal combustion automobile, honeycomb radiator.

 The first passenger road car to have brakes on all four wheels (1924).

 Traction control system, airbags, pre-tensioners in s-class

 In September 2003, Mercedes-Benz introduced the world's first 7-speed automatic transmission
called 7G-Tronic.

 Mercedes-Benz pioneered a system to detect an imminent crash and prepares the car's safety
systems to respond optimally.

 Mercedes Benz developed a fatigue-detection system, known as Attention Assist

 Mercedes Benz invented the adaptive high beam assist system

 Half a century of vehicle safety innovation helped win Mercedes- Benz the Safety Awards at the
2007.
 COMPANY PROFILE - BMW
 Bayerische Motoren Werke AG (BMW) is a German automobile, motorcycle and
engine manufacturing company. BMW is known for its performance and luxury
vehicles.

 Bayerische Motoren Werke G.m.b.H. came into existence in 1917. Having been
founded in 1916 as Bayerische Flugzeugwerke AG (BFW), it became Bayerische
Motoren Werke Aktiengesellschaft (BMW AG) in 1918.

 The dominating shareholder of the BMW Aktiengesellschaft since 1959 is the

Quandt family, which owns about 46% of the stock. The rest is in public float.

 BMW’s arch-rival in the premium car segment in USA and Europe is Daimler
Chrysler’s Mercedes Car Group. Other main competitors of BMW in Western
Europe include Volkswagen , General Motors (Opel, Saab, Vauxhall), Porsche,
Renault, Toyota (Lexus) etc.
 Models include, 1series, 3series, 5series, 6series, 7series, X1, X3, X5, X6, Z4, M3,
M5, M6, X5 M, X6 M, ActiveHybrid X6, ActiveHybrid 7.
INNOVATIONS & FINANCIAL ANALYSIS
 Hydrogen – H2R (1 and 2) Hydrogen Combustion Engine
 V10 engine
 Variable Twin Turbo Diesel
 Straight-six petrol engine
 xDrive all-wheel-drive system
 MINI Convertible soft top system
 Seven-speed SMG transmission

 net income dropped 74% to €78 million in third quarter 2009 compared to €298 million
in 2008.
  Although revenue figures (€11.8 billion) wereas predicted, net income was below
predictions by about €150 million. 
 This factor is further accelerated by governmental programs throughout the third quarter
that emphasized small car makers. Also seen was a drastic drop in the net profits of
BMW from 3134 Million Euros in 2007 to 330 Million Euros in 2008(the drop was
89.5%).
VISION & MISSION STATEMENT

 BMW’s Vision is - Uniqueness through diversity,

Leadership, taking Risk, courteous.

 BMW’s Mission Statement is - "To become the most

successful premium manufacturer in the car industry"
COMPARATIVE ANALYSIS OF BMW AND MERCEDES
BENZ

10000000
9237780
9000000
8282803
8000000

7000000 6517288

6000000
5407000
5000000
3912700 2008
4000000

3000000 2524325
2174299
2000000 1439918
1000000

0
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COMPARATIVE STUDY OF MARKET SHARE OF COMPANIES

15.00%
13.30% 13%
11.90%

10.00% 9.30%
9%
8%

5.60%
5%
5%
5.00% 4%
3% 3.10%
3%
2%
2.10%
2007
0%
0.00% 2008
Toyota General Motors volkswagen BMW Honda Mercedes change in Prod.

-5.00%

-7%

-10.00%
-11%

-15.00%
REVENUE LINES OF MERCEDES BENZ AND BMW

58000

56018
56000

54000
53197
52430
52000 51280
Revenues of BMW in Euro
50000 Million
48999
revenues of Mercedes cars in
48000 47772 Euro Million

46000

44000

42000
2006 2007 2008
MERCEDES BENZ : TREND ANALYSIS

2.5

1.98
2
1.8 1.8 1.85 1.8
1.7 1.71 1.7
1.67 1.7
1.68
1.55 1.58
1.5
1.38
Actual net income of Mercedes
1.23
1.17 1.18 1.14 Benz in DM billion
1.03 Expected net income of Mercedes
1 0.95 Benz in DM billion

0.5

0
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
 BMW : TREND ANALYSIS

3.5

3.13
3 2.87

2.5
2.242.23 2.24 2.2
2.07 2.11
2
Actual net income of BMW in
euro billion
1.5
Expected net income of BMW in
Euro billion
1.17

0.5
0.33

0
2004 2005 2006 2007 2008
 REGRESSION TRENDS OF BMW

60
56.02
53.2

50
46.6
48.9
Bxy=2.5377
44.3
Byx=.13328
40

Coefficient of
30
correlation,r=0.5815

sales of BMW in euro Type of correlation :

20 billion
Moderate
Actual net income of
BMW in euro billion
10

2.24 2.24 2.87 3.13

0.33
0
2004 2005 2006 2007 2008
CORRELATION TRENDS OF MERCEDES BENZ

Bxy=46.619
Byx=0.01446

Coefficient of
correlation,r=0.8211

Type of correlation :
High
SWOT ANALYSIS OF MERCEDES BENZ
Strengths
•Reputation for quality and durability
•Became synonyms for prestige and excellence
•Continuous improvement in quality
•Joint ventures with companies to introduce hybrid fuel efficient model

Weakness

•Performance over fuel efficiency.

•Faces competition in terms of technology from other brands like BMW s.
•Costly German production base

Opportunities

•Expansion of European union large market block opened.

•Underexplored Asian markets.

Threat
•Other big companies in the line manufacturing same products.
•Rising price of raw materials.
•Fuel prices and small car manufacturers
•New entries
SWOT ANALYSIS OF BMW
Strengths
•Intelligent cars(the technology and the artificial intelligence that they provide
with the cars
•Security
•Customer relationship
•High adaptability production

Weakness
•Heavy cost German based production unit
•Maintain its German engineering excellence still get cost competitiveness

Opportunities
•Expansion of European union
•Underexplored Asian markets

Threats
•Other big birds in the line manufacturing same product line
•Rising price of raw materials
•Fuel prices and small car manufacturers
•New entrants
COMPETITORS OF BMW AND MERCEDES BENZ

15.00%
13.30% 13%
11.90%

10.00% 9.30%
9%
8%

5.60%
5%
5%
5.00% 4%
3% 3.10%
3%
2%
2.10%
2007
0%
0.00% 2008
Toyota General Motors volkswagen BMW Honda Mercedes change in Prod.

-5.00%

-7%

-10.00%
-11%

-15.00%
 OUR LEARNINGS AND CONCLUSIONS
•Niche market enjoyed by the luxury car makers

•Effect of economic downturn

•R & D is the key for survival of any company

•The new concepts introduced :

 The use of new materials

 Light-weight structures
 Mechatronics
 Communication technologies
 Efficient Dynamics
• Extensive quality control

• Excellent customer relationship

• Extensive use of information systems