I'm very unsure what to make of this "Hate Post". In principle, you are describing exactly the corporate strategy that is supposed to turn the premium manufacturer into a luxury manufacturer. You don't restructure a company in the same way. Such projects only take place over decades. As a result, risk analyses and exit strategies are naturally taken into account and planned for. However, as a public limited company, the shareholder value must be taken into account to a disproportionate extent, so intercultural communication must of course not be excluded.
It is therefore perfectly natural to have to abandon the segment of the average earner in order to generate higher margins later on. The direct aim is to drive away these buyer groups in order to achieve a new social status. However, "der Stern" has this prestige because it is already firmly anchored in the luxury segment with AMG and Maybach. The Western idea of prestige, that you have to drive a Mercedes, BMW, Audi etc. in order to achieve social status, simply does not exist in the Chinese car market due to income levels. This simply contradicts their mentality. The buyer group should be in the top 10% in order to achieve a sustainable margin strength.
This phenomenon can already be seen in Germany and the USA. Which target groups can really afford to maintain a premium car? Only those who manage an equally disproportionate budget, which encourages the envy of others. Nevertheless, people always look at you on the road if you own such a car. Whether you perceive a car as a status symbol is a matter of individual freedom.
The fact is, however, that it does have a certain status, especially in Western corporate circles, when you arrive at a company meeting in an S-Class rather than a Dacia Duster. In business terms, it creates a certain level of trust, as the status, success and know-how of the respective business partner can be gauged under certain circumstances. (Of course, this cannot be generalized.) After all, such a car can only be easily maintained if the company is successful.
In this respect, your text describes not so much an individual problem at Mercedes, but rather the general situation of German premium manufacturers. 😅
It is therefore perfectly natural to have to abandon the segment of the average earner in order to generate higher margins later on. The direct aim is to drive away these buyer groups in order to achieve a new social status. However, "der Stern" has this prestige because it is already firmly anchored in the luxury segment with AMG and Maybach. The Western idea of prestige, that you have to drive a Mercedes, BMW, Audi etc. in order to achieve social status, simply does not exist in the Chinese car market due to income levels. This simply contradicts their mentality. The buyer group should be in the top 10% in order to achieve a sustainable margin strength.
This phenomenon can already be seen in Germany and the USA. Which target groups can really afford to maintain a premium car? Only those who manage an equally disproportionate budget, which encourages the envy of others. Nevertheless, people always look at you on the road if you own such a car. Whether you perceive a car as a status symbol is a matter of individual freedom.
The fact is, however, that it does have a certain status, especially in Western corporate circles, when you arrive at a company meeting in an S-Class rather than a Dacia Duster. In business terms, it creates a certain level of trust, as the status, success and know-how of the respective business partner can be gauged under certain circumstances. (Of course, this cannot be generalized.) After all, such a car can only be easily maintained if the company is successful.
In this respect, your text describes not so much an individual problem at Mercedes, but rather the general situation of German premium manufacturers. 😅
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@Hannes_SK Thank you for your constructive feedback 😊
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