The Marketing Environment: Chrysler corporation

The DaimlerChrysler Corporation is a diverse international business that has many subsidiaries all around the world. Since the merger of Daimler-Benz and Chrysler Corporation in mid-November 1998 DaimlerChrysler has had many interesting things happening within their ranks.

Between January 20, 1999 and March 5, 2001 DC has been sued by its number 1 shareholder, projected losses in the million to billion dollar areas, made joint ventures with its competitors, become the fourth largest provider of financial services, restructured some of its brands, closed American plants, sold off some of its divisions, and has expanded operations and modernizations in many of its Canadian and American factories.

Competitive ForcesNow that the DaimlerChrysler conglomerate has been undone and a private equity firm is set to take over operation of Chrysler, current and would-be owners of new Chrysler products are wondering what it will mean for them. In the short term, the answer is likely to be, “Business as usual.” Corporations as large as Chrysler do not change direction quickly and it will take time to see what sort of management changes Cerberus Capital Management LP, which paid $7.4 billion for an 80 percent stake in Chrysler, will make. Looking long term, though, there are some questions that may be on buyers’ minds.

For example, many of the latest Chrysler vehicles contain parts sourced from Mercedes-Benz. Will the DaimlerChrysler divorce mean those replacement parts could become scarce or more expensive? That’s not likely to happen. Manufacturers and their suppliers continue to keep a stock of replacement parts generally for at least 10 years, and because most Chrysler vehicles are built in large numbers, secondary suppliers would likely find it profitable to fill any parts void.

Economic ForcesIt is surely good, after a lively economic boom, to have a shake-out so that the best firms survive and thrive, and not to support weaker companies whatever the economic forces against them. That is how the United States has ended up with companies like General Motors and Chrysler. All the same badly run companies with excessive debt levels have to be allowed to fail in order for the fittest to survive. These are the companies that will deliver future economic growth through higher levels of productivity and not by holding out a hand for government cash.

Chrysler also has less to worry about in the global economic slump as it can rely on the stimulus packages of other countries to raise the oil price and inject cash back into its coffers. That is another good reason for Chrysler not to get carried away with market intervention.

Technological ForcesNext up we have in-vehicle wireless internet connectivity, which Chrysler promises will turn your car into a mobile hot spot. It will use a combination of WiFi and 4G broadband connectivity to keep your car connected to the internets, and Chrysler says you’ll be able to access your email, as well as download music movies right in your car.

For the 2008 model year, In addition to the host of new innovations offered on 2009 Chrysler, Jeep and Dodge vehicles, Chrysler’s product development team has created its unique Knowledge Based Engineering system to speed vehicle development time. Using the company’s proprietary software, engineering data and knowledge, engineers were able to develop the all-new Dodge Challenger in just 21 months, chopping several months off the normal vehicle development time.

The Knowledge Based Engineering process is now in widespread use at Chrysler, with a goal of speeding development time on all future Chrysler vehicles.

Cultural and Social ForcesChrysler was the very symbol of American adaptability and resilience. Chrysler valued efficiency, empowerment, and fairly egalitarian relations among staff; whereas Daimler-Benz seemed to value respect for authority, bureaucratic precision, and centralized decision-making. These cultural differences soon became manifest in the daily activities of the company.

For example, Chrysler executives quickly became frustrated with the attention Daimler-Benz executives gave to trivial matters, such as the shape of a pamphlet sent to employees. From the perspective of Culture and Social forces, India is country in transition with vast potential and challenges, very significant accomplishments, but also respect for the past and social traditions. The key for Chrysler to succeed is the ability to integrate the traditional system into the modern outlook and form a hybrid strategy for management of Chrysler.

References”Walter Percy Chrysler.” The Columbia Encyclopedia, Sixth Edition. 2008. Retrieved May 23, 2009 from, G. (2009, May 2). Chrysler Bankruptcy – Saved by Fiat? Retrieved May 23, 2009, from—Saved-by-Fiat?&id=2296890Kelly,