Question

The ultimate goal of strategic management is the attainment of competitive advantage. With

reference to Mercedes Benz automobile manufacture and with adequate theoretical context, critically discuss the
Mercedes Benz automobile manufacture competitive advantage.

How to sustain a competitive advantage using differentiation, low cost strategy and best cost strategy. Apply and give examples for Mercedes Benz automobile manufacture.

Answer 1

Mercedes Benz has achieved competitive advantage through differentiation, low-cost strategy, and best-cost strategy.

Step-by-step explanation:

Mercedes Benz automobile manufacture has achieved competitive advantage through various strategies such as differentiation, low-cost strategy, and best-cost strategy.

1. Differentiation: Mercedes Benz has differentiated its automobiles by focusing on luxury, design, and advanced technology. They offer high-quality vehicles with innovative features that set them apart from their competitors. For example, they were the first automobile manufacturer to introduce airbags in their vehicles.

2. Low-cost strategy: Mercedes Benz has also implemented cost-saving measures in their manufacturing processes that enable them to offer competitive prices. They optimize their supply chain, use efficient production methods, and negotiate favorable pricing with suppliers.

3. Best-cost strategy: Mercedes Benz combines elements of differentiation and cost leadership to offer high-quality products at competitive prices. They strive to provide superior value to their customers by offering luxury features at affordable prices compared to other luxury brands.

These strategies have helped Mercedes Benz sustain a competitive advantage in the automobile industry. They continuously innovate and adapt to changing customer preferences, ensuring that their vehicles meet the demands of the market.