Cycle & Carriage

Q1) How burning(prenominal) was the Mercedes Benz statistical distribution agreement to C & C? The Mercedes Benz distribution agreement was important to almost everyone associated with C&C, including employees, customers, shareholders. However, since the question states ?how important, it is essential for us to define how Mercedes Benz is the most important and to whom in C&C. As seen from the case, we know that Mercedes Benz distribution agreement do up the largest proportion of profits in C&C due to its prestigious brand name. Thus, we feel that the shareholders were most concerned with the distribution agreement. Based on the case, we lav assembly the benefits that Mercedes Benz brought round to C&C into two main categories, namely visible benefits and intangible benefits. Tangible benefits ? Financial strength -C&C car gross r even upue accounted for 80% of total revenue, while sales of Mercedes Benz accounted for 80% of the total profits. Intangible benefits ? Reputation / Brand hold dear -C&C was associated with Mercedes Benz in the minds of Singaporeans. -Mercedes Benz cars were the ultimate status attribute in Singapore and Malaysia.

-The brand is so strong that even the demand for these cars was not affected by frequent and longstanding complaints of C&Cs poor customer and after-sales service, as surface as the high prices and waiting lists. -Sales were also plumb resistant to broader economic conditions. Mercedes-Benz sales rose 6% in 2001 to 3457 units, despite Singapore suffering its worst recession in decades. Based on the Porters Generic Strategies, C&Cs approach to owning Mercedes Benzs sole distribution rights was Focus Differentiation strategy. Differentiation overall Cost Leadership Focused DifferentiationFocused Cost Leadership As seen from the framework above, C&Cs strategic target group is particularly the high-end consumers, who are looking for a car that can match up with their status. Also, their strategic advantage lies in the high... If you compulsion to get a full essay, order it on our website: Orderessay

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