Mercedes Benz India Case Study Example | Topics and Well Written Essays - 2250 words

Mercedes Benz India - Case Study Example The case bring into focus the issues that the Chief Information Officer of the global automobile company’s India subsidiary faces while catering to the decision of the top management officials of shifting the global automobile company’s India based manufacturing operations from the already existing site in Pune to the newly acquired sites at Chakan. The world’s twelfth largest car maker in terms of production volume was one of the first foreign automobile companies to enter the Indian market through the process of formation of a joint venture with Tata Engineering Locomotives Company (TELCO). The company focused on evolving growth in the company by the process of manufacturing of various models of automobiles falling mostly to the commercial segment over the next couple of years/. Around the year 1994, the company focused on the process of development of the E-class luxury sedans for the company’s Indian portfolio. Owing to the significant growth in the number of first generation entrepreneurs handling successful businesses in the Indian market as well as the significant growth in the number of Indian high net worth individuals over the recent years, the market of India belonging to the luxury automobile segment appeared highly appealing to the luxury carmakers all over the globe. Most of the luxury carmakers around the globe, felt that the luxury automobile market in India is ripe for investments due to the rising number of high net worth individuals market and will increasingly contribute to a significant amount of growth for the company. This led to a rise of investments in the Indian market by luxury car makers around the world thereby significantly increasing the competition that is already existing in the Indian market. The Mercedes Benz India, which is the Indian subsidiary of the world’s twelfth largest car maker in terms of production volume, Daimler AG undertook an internal sur vey. The internal survey that was undertaken by Mercedes Benz India forecasted a highly favorable rate of growth in terms of production and sales for the company’s luxury segment portfolio. This prompted the organization to focus on the acquiring of new production facilities within the Indian landmass in order to significantly augment and catalyze and capitalize on the growth opportunities and prospects with regards to the forecasted demand for the company’s portfolio belonging to the luxury vehicles. However, a series of uncertain macro economic factors which got initiated in the middle of the year 2007, due to the subprime crisis in the United States significantly created a shortage of cash flow for the highly capital and credit intensive automobile sector all over the world. The global crisis had a spillover effect on the organization’s various other product portfolios, thereby creating the scenario of non sustainability and uncertainty for the companyâ€℠¢s predicted forecasted growth rates. Overview of Porter’s 5 Forces Model The Porter’s 5 forces model increasingly falls in the domain of strategic management, the processes, tools and tactics of which are increasingly employed by organizations