This paper examines the international marketing strategies of DaimlerChrysler for its Smart Car brand as the company seeks to expand into new Asian markets. It begins with an overview of DaimlerChrysler and the Smart Car product line, then identifies the brand's core competitive advantages, including its wide model variety and hydrogen fuel cell technology. The bulk of the analysis applies a PESTLE framework to evaluate the political, economic, social, demographic, technological, and environmental forces across key Asian markets. The paper concludes by recommending a phased export-first strategy targeting South, North, and West Asian countries before transitioning to full-scale local manufacturing.
The paper demonstrates applied environmental scanning: a multi-factor external analysis (PESTLE) is used not merely as a descriptive checklist but as a decision-making tool to rank market attractiveness and sequence a phased entry strategy. Each PESTLE dimension is translated into a concrete business implication for DaimlerChrysler's export operations, showing how theoretical frameworks can drive practical strategic recommendations.
The paper opens with a short introduction situating international expansion challenges, then provides company and product background. A dedicated section establishes Smart Car's competitive advantages before the PESTLE analysis forms the analytical core across five sub-sections. A forward-looking section identifies additional untapped Asian markets, and the conclusion synthesizes findings into a phased export-to-manufacturing recommendation. The structure moves logically from context → capability → environment → opportunity → strategy.
International growth strategies bring a number of challenges for business organizations. They not only have to analyze the business environment in new markets, but also formulate effective international marketing strategies that enable them to compete in a competitive and profitable way (Cadle, Paul, & Turner, 2010). International expansion may become a disaster if an organization tries to penetrate a market without careful analysis of the external environment as well as its own internal strengths and competencies (Frederic, Agnes, & John, 2011). A company can either choose to export its products to new markets or set up manufacturing units, keeping in view the feasibility of its business in those markets.
This paper acquaints the reader with the international marketing strategies of DaimlerChrysler for its Smart Car brand, which is to be introduced in new Asian markets. The major focus of the paper is to analyze all the environmental forces that can affect this international expansion and to recommend strategies that can help the company choose the most attractive target markets in which to export these cars.
Daimler AG (formerly DaimlerChrysler) is a German multinational automobile manufacturer. Established in 1994, Daimler has become one of the most recognized brands in the global automobile industry. Since its inception, Daimler has introduced a number of car models for its worldwide customers. The company specializes in producing all types of vehicles, including luxury cars, racing cars, personal and family cars, and small-size cars. This variety enables it to target all income groups and classes of society. The most successful car brands of DaimlerChrysler include Mercedes-Benz, Dodge, Smart, Chrysler, and Jeep.
"Smart" is the brand name given to the mini or small-size cars that DaimlerChrysler has been producing for a specific target market for more than one decade. The first-generation Smart Car, the Smart City-Coupe (now renamed the Smart Fortwo), was introduced in late 1998 in the local market. Over time, DaimlerChrysler AG has penetrated potential markets in other countries with a variety of newer Smart Car models. The United States was the 37th target market in which DaimlerChrysler successfully established itself as part of its international expansion strategy. However, the company has not fully captured the Asian region, which remains a potential market for its Smart Car brand. DaimlerChrysler can establish its presence in attractive Asian markets by promoting the brand on the strength of its core competencies and competitive advantages (Smart, 2012).
DaimlerChrysler is a well-recognized brand in the world's automobile industry. Its top brands have won consumer trust and loyalty through astonishing designs, fuel efficiency, and excellent road performance. Among the highly appreciated brands of DaimlerChrysler, Smart Car holds its own distinct position. Smart Car is currently sold in Japan, China, Hong Kong, India, and Indonesia — among the most promising markets in the Asian region. Smart has built a large base of brand enthusiasts in these markets in a very short period of time. The biggest competitive advantage that DaimlerChrysler deploys against its competitors is the wide variety of models within this single automobile category (Kurtz, MacKenzie, & Snow, 2010). Smart Forfour, Smart Roadster, Smart Crossblade, Smart Fortwo, and Smart Fortwo ED are among the models manufactured and sold in these markets, with high levels of consumer acceptability (Smart, 2012).
Through its competitive advantage of a wide product line, Smart Car has greatly contributed to improving the financial performance of the company (Paley, 2006). Moreover, DaimlerChrysler uses hydrogen fuel cell technology in its cars, which significantly improves fuel efficiency and ensures smooth performance on the road. Smart Car can greatly benefit from this competitive advantage in new Asian markets where it intends to expand. Various Asian markets remain unreached or only partially targeted by DaimlerChrysler with its Smart Car category. To find the most feasible countries for international expansion in the Asian region, DaimlerChrysler will need to analyze the entire business environment of the region, along with the specific environmental forces that differ across each Asian country (Kurtz, MacKenzie, & Snow, 2010).
In addition to expanding operations in its existing Asian markets, DaimlerChrysler can target new markets to manufacture or export Smart Car. These new markets will give the company a platform to compete with local market leaders and establish its presence using its strong competitive advantages. There are numerous attractive markets in the Asian region that DaimlerChrysler can pursue for its Smart Car models.
First, DaimlerChrysler can target Bhutan, Sri Lanka, Pakistan, and Bangladesh. These markets can initially be reached through an export strategy, with a gradual transition to full-scale local production in the future. Subsequently, the company can target the North Asian region by exporting Smart Car to South Korea, North Korea, and Taiwan. West Asian markets can then be entered to bring the entire continent within the scope of Smart Car's target markets. Bahrain, Lebanon, Kuwait, and the UAE can be targeted in this initial phase (Paley, 2006).
The Smart Car of DaimlerChrysler has successfully captured major automobile markets in the Asian region. However, the company still has many attractive opportunities in the unreached markets of this region (Frederic, Agnes, & John, 2011). As part of its international expansion strategy, DaimlerChrysler can export its Smart Cars to the promising markets of South Asia, North Asia, and West Asia (Lancaster & Withey, 2007). Before entering these markets through an export strategy, DaimlerChrysler should carefully analyze the environmental forces present in each market and then strategize to offer its Smart Car in the most competitive and profitable manner (Kotler, Brown, Burton, Deans, & Armstrong, 2010). The business environment for Smart Car comprises political and legal, economic, social and demographic, technological, and environmental forces, each of which must be analyzed individually for every target market (Mühlbacher, Dahringer, & Leihs, 2006). Smart Car can draw great benefit from its core competencies of fuel efficiency, competitive design, reasonable pricing, and advanced technological features, as well as from its competitive advantage of high brand loyalty among target consumers. On the basis of these competencies, DaimlerChrysler can initially export its Smart Car to potential South, West, and North Asian countries, and subsequently begin local manufacturing contingent on consumer acceptability and sales volumes (Ellwood, 2002).
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