Comparative Essay on Mercedes and BMW
Mercedes-Benz and BMW have been competing head-to-head for market share in the luxury car market for more than four decades now. In 1959, BMW almost went bankrupt and nearly sold out to Daimler-Benz, the maker of Mercedes-Benz cars. It was able to recover in 1992 when it surpassed the worldwide sales of Mercedes. In response to BMW’s success, Mercedes had changed its image overtime. While there are many differences for the two car manufacturers, Vella (2008) noted they are more similar than different wherein one car expert says that Mercedes wants to become BMW and vice versa.
Basic difference is that BMW targeted its sales pitch to the younger market whereas Mercedes is more focused on its mature market base. Changes in the image are done in order to attract younger buyers who are interested in sporty and performance-oriented cars. This is another comparison wherein Mercedes focuses on luxury and comfort while BMW is focusing its energy on performance and driving dynamics. BMW therefore focuses on consumer quality that is coupled with environmental responsibility unlike Mercedes which deals more with safety innovations (Black, 2009, p. 212; Vella, 2006).
Keegan (2008) assert that prior to the standing of the two German car giants today BMW already sought the global market in 1994 when it built and opened a plant in South Carolina. Compared to Mercedes, the desire to become a global player started in 1998 when it bought the Chrysler Corporation. Both companies are well represented whereby coupes, sedans, convertibles, roadsters and SUVs represent BMW and sedans, coupes, convertibles, tall wagons, SUVs, roadsters, and other fine vehicles represent Mercedes.
Keegan (2008) made mention as well that owners of both BMWs and Mercedes Benz have some things in common which is vehicle maintenance. What is good for both car manufacturers is that they teach consumers of equipping cars with only the finest OEM parts most of which are German born and bred.
When it comes to total cost of ownership (TCO) which is calculated as estimated depreciation plus maintenance, financing, tax, insurance, fuel, and repair costs over a five-year period, Mercedes cars has higher five-year TCO which means that BMWs are about 6% less costly to own in long-term.
Vella (2006) further noted that both BMW and Mercedes has a common enemy which is the Japanese car manufacturers considering that they are both German. Japanese automakers are making a push towards the luxury markets. However, this could be difficult since BMW and Mercedes are among the top three most highly prized auto brands. This means that despite the advances of Jaguar, Lexus, Infiniti and others luxury brands BMW and Mercedes are favored brands. Both companies also topped the list of most recognised luxury brand names for consumers with more than million net worth.
References
Black, K. (2009). Business Statistics: Contemporary Decision-Making. John Wiley and Sons.
Keegan, M. (2008). German Vehicles Comparison: BMW Vs. Mercedes. Car Parts Stuff Magazine.
Vella, M. (2006). German Throwdown: BMW vs. Mercedes-Benz. Business Week.
Vella, M. (2008). BMW vs. Mercedes-Benz. Business Week.
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