Daimler to axe luxury cars subsidiary Maybach

This is a good example of a Corporate level strategy. Daimler deduced that the performance of the Mayback SBU was not at the expected level and decided to withdraw. The figures for this decision are very interesting, the sales were only 20% of the target set.
Another very interesting point is that Daimler is going to re-enter the luxury end of the market with a new strategy: 'the firm is expected to target the low-priced section of the luxury market' which could be linked to the price leadership generic strategy even at the luxury market.

Daimler to axe luxury cars subsidiary Maybach

German industrial group Daimler is preparing to disband its ultra-luxurious Maybach car marque.
The decision follows almost a decade of trying to make Maybach a profitable rival to Rolls Royce and Bentley.

Read the whole article at: http://www.bbc.co.uk/news/business-15917550

BA scraps the short-haul sandwich

Cost-cutting practices in company that does not compete on price.

BA scraps the short-haul sandwich

British Airways is to scrap all meals, except breakfast, on its short-haul flights in a bid to save £22m a year.
Passengers on flights after 10am, which last less than two-and-half hours, will only be served drinks and snacks. They will not have the option to buy food.


Read the whole article at: http://news.bbc.co.uk/1/hi/business/8174009.stm

March launch for 'cheapest car'

Could this be the answer to the problems of the automotive industry? The low frills strategy has restructured the airlines industry; could a similar approach do the same for the automotive? It would be interesting to examine whether Tata could launch this product in more mature industries like Europe or US.

March launch for 'cheapest car'
India's Tata Motors has said its Nano, billed to be the cheapest car in the world, will be launched next month.
The company said the launch would take place on 23 March in Mumbai. It will start taking orders in mid-April.
The basic model is expected to cost about 100,000 rupees ($1,984, £1,393). The car was due to have been launched last year.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7911749.stm

Mobile phones take to the skies

Does this make sense? A low-frills, cost leader company to differentiate in such as a great scale that even the likes of BA do not... Interesting to note how the company uses customer feedback (you can read and compare with this commentary on the US automotive industry http://www.businessweek.com/magazine/content/09_06/b4118032619547.htm?chan=innovation_auto+design_top+stories)

By Colette Hume BBC News

Picture the scene - you're on the plane on your way to a dream holiday destination. Take-off was smooth and the drinks trolley is on its way down the aisle.
The mood is complete - then a mobile phone rings.
For some that sound spells heaven, for others hell, but from now on it's a reality for thousands of Ryanair passengers

Read the whole article at: http://news.bbc.co.uk/1/hi/uk/7900802.stm