Date Submitted:
03/18/2011 03:23 AM
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Corporate Finance –Chrysler Case

Chrysler
Boons:
Price, according to the reading material, the price of Chrysler’s large car is similar as Mercedes-Benz’s C-Class car. The lower price is one of the reasons for Chrysler success. For the lower price, the product could account for dominant position in the whole market. Two-third of Chrysler’s trucks dominate the truck market may prove my viewpoint.

Short cycle of concept-to-market: first of all, low development costs leads to the lower price for Chrysler cars. Considering other operating cost, if a corporation has a low development cost, then this corporation has advantage of competition. For Chrysler, a lower development time means Chrysler may innovate new car model compared with other corporation, adjust its operating mistakes and so forth. Secondly, innovation, as we know, the Chrysler mainly relies on new car’s model and costumers cherish the new cars as well, therefore, innovation could keep Chrysler’s sale blooming. Thirdly, good supplier relation, I think that similar as network. Good supplier relationship firstly provides a stable operating environment because a stable supplier line keeps Chrysler’s production.

International strategy: in my opinion some people will not agree my view because Chrysler focus on only some part of the world’s market that may triggers the shrink of Chrysler sales all over the world since if the market has some crisis, Chrysler’s sales must be influenced. Granted, I admit the mentioned viewpoint. However, I think the Chrysler’s marketing strategy fit its operation. As I know, if a company especially car production corporation utilize an expanding sales strategy, it must allocate a great amount of money in advertising and other expanding market policies. For Chrysler, lower development cost has brought massive of advantages. Moreover, based on Chrysler’s brand, it already had advertising influence all over the world especially in some developed countries. Consequently, focus on developing country like south…

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