Amid the pandemic outbreak, here's how Mercedes is rethinking its business strategy

Amid the pandemic outbreak, here’s how Mercedes is rethinking its business strategy

Mercedes is rethinking its business strategy

The COVID-19 outbreak is fast spreading its tentacles across several industries, the automotive sector being one of them. Soon after the outbreak of the pandemic, the industry has been struggling to keep their sales going however as March dawned, the situation had worsened. With consumer footfalls decreasing and manufacturing plants being closed down, sales have fallen down sharply. The best they could do was sit back and wait for the lockdown to be lifted while hoping that the crisis soon comes to an end.

Among the companies that have closed down their production is Mercedes – one of the best luxury car companies in India and the world alike. With the current scenario leading to severe headwinds in businesses, what many are concerned of is whether consumer behaviour will remain the same or not as once we get out of the crisis. In this regard, Mercedes-Benz India CEO Martin Schwenk highlights the measures the company is taking to deal with the possible impact.  While the automotive giant has halted their production and dealerships temporarily, it hasn’t cancelled any major planned initiatives.

Furthermore, another strategy it is planning for which other companies may want to look up to is recalibration and reprioritisation of its short term objectives. “The current situation gives us new ways to rethink our business and support our customers and digital approach is an emerging trend as many customers are adopting the digital experience seamless,” said Schwenk. However, its prime concern remains the same – normalisation of things. Other than that, the automobile marque is looking forward to increase customers’ demand and speed up its production once everything settles down.

Earlier, Mercedes-Benz has been planning to launch its first electric vehicle in India in April however, there has been a major roadblock with the rise in coronavirus outbreak hampering its supply chains from China.  In light of the increasing number of reported cases in India the number of which has surpassed 8000, the luxury carmaker has joined hands with local authorities to set up temporary 1500-bed hospital in Pune.