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BMW Group versus Mercedes-Benz Group

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BMW Group versus Mercedes-Benz Group

Introduction

In every sector, there has always been competition, which keeps companies on their toes.

When these rivalries emerge, the customer is always advantaged, as they will be sure of great

value at a price that is not very extravagant. In the automobile industry, competition has been the

talk of the day, as many companies are taking measures to stay ahead of their competitors by

designing vehicles that customers would love most. These include incorporating the latest

specifications and features that align with current technological advancements and that

customers would enjoy using. Two of the companies that can be used in this scenario are BMW

and the Mercedes-Benz Group, which for decades have shaken the global market through the

production of luxury vehicles. This piece seeks to come up with a comparison between the BMW

Group and the Mercedes-Benz group, seeking to understand what these two brands have done to

stay relevant in the market.

The BMW Group and the Mercedes-Benz Group are situated in Germany, and their

primary goal is to manufacture luxury vehicles for customers. BMW is headquartered in Munich,

Germany, while Mercedes-Benz has its headquarters in Stuttgart. BMW presents a compelling

value proposition with the slogan that presents it as “the ultimate driving machine,” but

Mercedes-Benz's value argument asserts that there is a straightforward rationale for selecting a

Mercedes-Benz over any other luxury vehicle (BMW Group, 2023a; Mercedes-Benz Group,

2023). The Mercedes-Benz brand has consistently demonstrated exceptional value and

unparalleled style, starting with the pioneering work of Karl Benz and his invention of the first

gas-powered engine in 1886. This legacy of innovation has continued to the present day, with

Mercedes-Benz remaining at the forefront of advancements in vehicle safety and connectivity.

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Both value propositions exhibit sustainability as they effectively incentivize buyers to make

automobile purchases.

BMW and Mercedes-Benz have clearly stated their operations efforts in their mission and

vision statements. Undeserved values that demonstrate the greatness they aspire to at the end of

the day guide these efforts. The BMW Group's mission statement states its purpose and

commitment to becoming “the world's leading provider of premium products and premium

services for individual mobility.” (BMW Group, 2023a). In addition, the company has a vision

that focuses on ensuring that the group becomes “the most successful premium manufacturer in

the industry.” Clear values serve as the company's compass, encouraging responsibility, trust,

openness, appreciation, and transparency among all stakeholders and clients (BMW Group,

2023a). On the other hand, Mercedes-Benz has not been left behind in stating its operation

mission and vision obligation, ensuring that it produces state-of-the-art automobiles with

contemporary technology. The mission of the group is to “inspire and create an exceptional place

to work and to do business. One employee, one customer, and one vehicle at a time.” (Parker,

2023). The mission also states the efforts of the company in creating a transparent environment,

premium auto inventory, individualized customer care, and the luxury experience deserved by its

customers. For the company’s vision statement, the group seeks to create products that “foster an

environment that empowers employees and promotes innovation, relationships, and growth.”

(Parker, 2023). These would be through the inspiration of the customer's confidence in a

transparent environment and the production of premium automobiles.

The BMW Group and the Mercedes-Benz Group are known for their production of a

wide variety of goods and services. These products are exclusively different across these

companies, but all are geared towards customer satisfaction. For instance, BMW produces
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automobiles and offers premium financial and mobility services. Some of the products under this

brand included the BMW, the BMW i, the BMW M, the MINI, the MINI John Cooper Works,

the Rolls-Royce Motor Cars, and the BMW Motorrad. The company also provides several

services, some of which include Alphabet, Designworks, and BMW Group Financial Services,

which seeks to lease the BMW Group’s commercial customers automobiles and motorcycles

(BMW Group, 2023). On the other hand, Mercedes-Benz is known for its brand and services,

with some of its products including Mercedes-Benz, Mercedes-Me, Mercedes-AMG, and

Mercedes-Maybach, while some of its services include the Mercedes-Benz Bank, Mercedes-

Benz Financial Services, and Athlon. For financial services, the company has been offering

finances, leases, fleet management, insurance brokerage, and other innovative mobility services

to its customers (Mercedes-Benz Group, 2023).

In addition, after the delivery of various products and services to customers, the

companies have realized financial growth locally and globally. Based on the 2022 report from

the company, BMW has a total of 149,475 employees in various sectors of production. At the

same time, the company confirmed that they had 2,399,632 vehicles successfully delivered to

their customers and 202,895 motorcycles delivered to their customers. From the sales of

vehicles, motorcycles, and services, the company has earned a total of 142,610 million euros

(BMW Group, 2023b). On the other hand, the Mercedes-Benz group realized significant

financial mileage, which was based on last year's (2022) financial report. The company has

slightly higher hiring values than those of the BMW Group, with its employees standing at

170,000. The total automotive sales that the company had made at the end of 2022 were

2,456,063 vehicles, which earned the company 150,017 million euros (Mercedes-Benz Group,

2023).
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When comparing the BMW and Mercedes-Benz, some key features, such as the costs,

engine performance, and interior design, can be utilized. The BMW 3 series and the Mercedes-

Benz C-Class, both 2017 and 2018, can be compared. The BMW 3 of 2017 cost buyers at least

$33,450, while that of 2018 was around $34,900 with a horsepower of 320, which enjoys a full

digital setup. A selection of buttons is located precisely underneath the infotainment system, the

screen has been removed entirely, and the gear shift lever now has what seems like significantly

more weight to it. On the other hand, the C-Class of Mercedes-Benz, which was pioneered

during the same time, has 275 horsepower and great interiors. The car's seats are finely fitted and

designed to match the curve of one's body to provide a more pleasant ride. In addition, it features

wood-made trim, which gives the cabin an even more unique appearance.

In terms of pricing, both brands make efforts to provide automobiles that are

competitively priced. It is evident that individuals incur significant expenses while purchasing

luxury vehicles, provided that their financial resources permit such expenditures. Nevertheless,

for individuals seeking to minimize expenses, BMW is likely to be a more favorable choice.

When conducting a comparative analysis of identical models, it becomes evident that BMW

offers comparatively lower prices. In terms of technological capabilities, both brands possess

extensive and advanced technological features. Nevertheless, the presence of technology within a

Mercedes-Benz is abundant. It is crucial to acknowledge that Mercedes-Benz has exerted a

substantial impact on various industries, particularly in the realm of technology (Wang & Kong,

2022). The Mercedes S-Class presents a plethora of visual and functional features. For example,

the technology of this device enables users to engage in activities such as browsing music,

establishing navigation routes, and accessing weather forecasts.

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The BMW has a stoke price, whose annual average is around €96.17, with an average

volume of 1.02 million. In a year, the stock price ranges from €68.44 to €113.46. On the other

hand, in the Mercedes-Benz group, the stoke price is averaged at €65.61 annually, with the

values fluctuating from €50.56 to €76.10. Both BMW and Mercedes-Benz enjoy both national

and international markets. Although these companies are headquartered in Germany, they have

extended their operations to other nations such as China, the United States, and South Africa.

According to recent reports, China accounted for the majority of BMW Group sales in 2022,

with the United States, Germany, the UK, South Korea, and France purchasing only up to 25%

of the total sales (Statista, 2023).

In China, Rolls-Royce, BMW, and MINI sales accounted for 33.1 percent of the total

sales. The customers bought around 793,500 vehicles in 2022, which was one of the greatest

sales (Statista, 2023). On the other hand, for the Mercedes-Benz group, sales were highest in the

European market, with over 618,900 brought in in 2022. The Chinese market is in second place

with approximately 753,900 vehicles sold in the area, while the United States purchased 300,800

vehicles. The company has been attempting to resume outsourcing passenger cars to Egypt, and

it anticipates that the locals will support the new initiative. The Mercedes-Benz group, however,

has been experiencing challenges in striving in some regions, such as North America, South

America, and Europe, with sales in those regions declining. However, with recent efforts, the

company has attracted new customers, with revenue increasing from the global market to up to

109.7 billion euros in 2021 from 57.4 billion euros in the last ten years (Statista, 2023a).

Conclusion

In conclusion, the BMW and Mercedes-Benz groups manufacture lucrative cars that fit

various luxury needs. These companies serve as close rivals, all intended to produce automobiles
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that would be the choice of many customers locally and in the global market. Over the years, the

companies have developed sustainable strategies guided by their missions and visions, producing

state-of-the-art automobiles that have always satisfied their customers. However, despite being

rivals, they have always agreed to adopt new technologies that generate eco-friendly vehicles.
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References

BMW Group. (2023). Brands & Services. BMW Group - English.

[Link]

BMW Group. (2023a). BMW Group Mission, Vision & Values | comparably. Comparably.

[Link]

BMW Group. (2023b). Company. [Link]

Mercedes-Benz Group. (2023). Benz group at a glance: Mercedes-Benz Group. Mercedes.

[Link]

Parker, B. (2023, August 4). Mercedes-Benz Mission Statement: & vision: Core values: Analysis

(2023). Business Strategy Hub. [Link]

statement-vision-core-values-analysis/

Statista. (2023). Car sales by market: Mercedes-Benz 2022.

[Link]

markets/

Statista. (2023a). Key automobile markets of BMW Group 2022.

[Link]

Wang, J., & Kong, F. (2022, April). Research on thermal management system of next-generation

hybrid electric vehicle. In Journal of Physics: Conference Series (Vol. 2260, No. 1, p.

012022). IOP Publishing.