“The essence of strategy is choosing what not to do.” —Michael Porter
“Our strategy is designed to avoid non-core activities to focus on winning where it matters: dedicated electric vehicles and proprietary car software. We will take action on structural costs, target strong and sustained profitability. With this new strategy we are announcing our clear commitment to the full electrification of our product portfolio and our determination to ensure the business is fully carbon-neutral, in line with our Ambition 2039 target.”
Recently, Mercedes-Benz unveiled their ambitious plans to dominate the luxury automobile segment. The company has released a series of videos which details their business strategy. Each video features presentations from key managers within design, engineering, and marketing. The videos offer a stunning admission of Daimler’s past mistakes, shortcomings, and weak financial results. Going forward, management is embracing a relentless focus on EV’s, profitability, and lowering emissions. The key six pillars of Daimler’s new business strategy include the following:
- Think and act like a luxury brand
- Focus on profitable growth
- Expand customer base by growing sub-brands
- Embrace customers and grow recurrent revenues
- Lead in electric drive and car software
- Lower cost base and improve industrial footprint
Click the following link to access Daimler’s website and watch the video series that reveals the company’s roadmap for the future. The videos are worth watching because they represent how incumbent automobile manufacturers are adapting, combating, and navigating the radical changes facing the industry.
See video here.