Mercedes Benz AAV Project 1. Q. What is the competitive environment faced by MB? Ans; Mercedes Benz is a world know Luxury car brand. Their main competitors are BMW, Lexus, Acura, Audi etc. At that time, not many of their luxury brand competitors were into AAV cars, companies who had AAVs in the market were GM, ford Jeep etc. But this was a rapidly growing market. 2. Q. How has MB reacted to the changing world for luxury automobiles? Ans: Luxury Car makers were hit hard by the recession
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MERCEDES-BENZE- ALL ACTIVITY VEHICLE a) What is the competitive environment faced by MB as it considers launching the AAV? The competitive environment was that the company faced difficulty in controlling costs, material purchasing, and a fast changing market. The needs of the customer were changing and MB was facing monetary losses. With regards to the AAV market this was targeted at a segment that was expanding, the sports utility segment. Jeep, Fordand GM dominated this. Reinforce that Mercedes
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Mercedes Benz - All Activity Vehicle (AAV) Problem Identification: Mercedes-Benz (MB) always took advantage of its loyal customers and a good brand image until it faced its first financial loss in 1993 due to cost inefficiency, issues with material purchasing and the inability to adapt to market changes. Since the loss, MB has been trying to react to environmental changes by identifying new segments and developing a whole new range of products. MB’s most far reaching project was the All Activity
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upper range of zone. An interesting point to discuss is that Mercedes does not produce the most expensive sports utility vehicle. This distinction is reserved for the Land Rover; however, they strategically placed themselves toward the luxury end of the spectrum. Also, unlike many Japanese examples, Mercedes does not use target costing as a strict cost control mechanism to produce the lowest priced product in its class. D) Hur kan AAV-projektet kopplas till MBs strategi i fråga om marknadstäckning
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an application of management accounting techniques to support change management. Starting with an excellent review of the strategic management of new product lines by Mercedes Benz, Tom Albright contributes an interesting and insightful picture of how target costs need to consider both current and strategic value issues. Mercedes’ use of a target cost index to integrate cost and strategic value is particularly interesting. The next three cases focus on the implementation and use of the balanced
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