DaimlerChrysler
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This essay aims at analysing the merger between Daimler-Benz and Chrysler; it is centred on the company with regards to the changing world of the automobile industry. It will evaluate the motives for the merger, Porter's five forces and PESTLE analysis will be conducted on the automobile industry. The culture web will be used to discuss the effective of the solutions of the post merger integration problems. A SWOT analysis will then be conducted, leading to an assessment of the current situation and evoking its possible evolutions in the future.
COMPANY OVERVIEW
DaimlerChrysler is the third largest car manufacturer in the automotive industry. The company was formed through merger between Daimler-Benz and Chrysler in 1998. Before the merger Daimler-Benz operated in four business segments: Automotive (passenger and commercial vehicles), Aerospace, Services and Directly managed business. Chrysler Corporations operated in two principal segments: Automotive operations and financial services.
MOTIVES OF THE MERGER
It is evident there is nothing easy in merging two companies of such a scale, and being so different, on an extremely competitive market which has overcapacity of 20 millions cars.
On an industrial level, the complementarities between Daimler-Benz and Chrysler seem to prove positive, as the company is present on all segments of the automotive industry, without notable overlaps, and the first models showing a true cooperation in shared technologies, distribution, purchasing, engineering, research and development (R&D)...