This case study focuses on the entrance of Daimler AG in form of their brand Mercedes-Benz Cars, in the following Mercedes-Benz, originally founded in Germany, into the Hungarian automotive market.
Mercedes-Benz is active in the field of passenger cars and this specific section will be addressed. Even though previous interaction with the Hungarian market was conducted in the past, the focus will lie on the successful engagement of Mercedes-Benz since 2008, when the decision to build a car assembly plant in Kecskemét was taken.
For its foreign engagement in Hungary, Mercedes-Benz used an offshore outsourcing strategy shown by strong engagement with local suppliers which produce many parts for the car manufacturer, in combination with equity investment in the final assembly plant. This makes Mercedes-Benz a fragmented MNE as it uses outsourcing, while at the same time it is an original design manufacturer. It's designs and produces are crucial parts of its cars itself.
The core business strategy is described for Mercedes-Benz with respect to four aspects: strengthening core businesses, growing globally, leading in technology and pushing digitalization. Regarding the strengthened core business and growing globally, this leads to further increase sales of high-tech cars, especially in China and Asia. With respect to leading in technology and pushing digitalization, Mercedes-Benz aims at expanding its technological leadership in the field of security, autonomous driving, connectivity and drive systems.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Type of MNE and Internationalisation of Mercedes-Benz
- Daimler's core business strategy
- FDI in Hungary
- The Market Environment in Hungary
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This case study aims to analyze the entry of Daimler AG's Mercedes-Benz brand into the Hungarian automotive market. It explores the company's internationalization strategy, its core business approach, and the market environment in Hungary. The study utilizes Porter's Five Forces model to assess the competitive landscape faced by Mercedes-Benz.
- Internationalization Strategies of Multinational Enterprises (MNEs)
- Market Entry Strategies and FDI Decisions
- The Impact of Foreign Direct Investment on Local Economies
- Competitive Dynamics in the Automotive Industry
- Porter's Five Forces Model and its Application
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter provides an overview of the case study, focusing on Daimler AG's Mercedes-Benz brand and its entry into the Hungarian automotive market. It highlights the significant growth of foreign direct investment (FDI) in Eastern and South Eastern Europe after the end of the Cold War.
- Type of MNE and Internationalisation of Mercedes-Benz: This chapter examines Mercedes-Benz's internationalization strategy, particularly its approach to foreign engagement in Hungary. It discusses the company's use of off-shore outsourcing, equity investment, and its status as a fragmented multinational enterprise (MNE) with a high degree of internationalization.
- Daimler's core business strategy: This chapter delves into Mercedes-Benz's core business strategy, outlining its four key aspects: strengthening core businesses, growing globally, leading in technology, and pushing digitalisation. The chapter emphasizes the company's focus on increasing sales of high-tech cars, particularly in China and Asia, and its commitment to technological leadership in areas such as autonomous driving and connectivity.
- FDI in Hungary: This chapter provides an analysis of foreign economic activity in Hungary, focusing on net FDI trends from 2001 to 2012. It highlights the Hungarian government's success in attracting FDI and the significant role of German FDI, particularly in relation to the construction of the Mercedes-Benz factory in Kecskemét.
- The Market Environment in Hungary: This chapter applies Porter's Five Forces model to analyze the market environment in Hungary, examining factors such as the threat of new entrants, the bargaining power of suppliers and buyers, rivalry among competitors, and the threat of substitutes. The chapter aims to provide a comprehensive assessment of the competitive landscape faced by Mercedes-Benz upon entering the Hungarian market.
Schlüsselwörter (Keywords)
The key focus topics of this case study include foreign direct investment (FDI), multinational enterprises (MNEs), internationalization strategies, market entry, competitive dynamics, Porter's Five Forces model, the automotive industry, the Hungarian economy, and Mercedes-Benz.
- Quote paper
- Stefan Bömer (Author), 2018, A Case Study of Daimler AG's Entry in the Hungarian Automotive Industry, Munich, GRIN Verlag, https://www.grin.com/document/1166990
