Cultural Diversity in the Workplace | Literature Review

Cultural Diversity in the Workplace literary works ReviewIn straight offs much and more globalized gentleman, the phrase sort in the workplace tends to pop up e trulywhere. The main reason being that modern expert advances in transportation fool shrunk the globe to such an extent that it is no spacioussighteder a problem to move to whatever part of the mankind be it for entertainment, studies and especi all(prenominal)y work. This penning explicitly focuses on literature that relates to heathen multifariousness in an organization and its implications on employee consummation and the performance of a corporation as a whole. It get out(p) excessively take a look at ethnic diversity from either side of the mirror, that is, the positivist as hale as the negative aspects and how to manage such an employee base. ravish as wellspring note that, while there has been somewhat debate on whether accelerate and culture should be thought as the same affaire, this pa per regards them as inter-uscapable so as to neutralise confusion.So what exactly is heathenish diversity? It has been described as the com persuasion of work building blocks (work group, organization, occupation, establishment or satisfying) in terms of the cultural or demographic characteristics that ar prominent and symbolically signifi substructureceful in the relationships among group members (DiTomaso, Post, Parks-Yancy, 2007) .The age has g star by when you expect an employee from a verso cultural background to just get going in and start producing government issues (Amaram, 2007). Organizations have realized that a multi-cultural work force dejection prove to be a great asset especially if the descent is to be expanded to multinational merchandises. So the focus has somewhat shifted to get along with up with strategies to handle such an employee base and how to sustain that program.In his estimation of the value of a multi-cultural workforce, (Konrad, 2003 ) invokes 3 reasons why companies atomic pattern 18 changing their attitudes and strategies regarding enlisting of employees with different backgrounds. Firstly, the best endowment is not always local you neediness to look globally to recruit the best reasons in the military control. Secondly, he dialog ab expose market dole out, that is, a culturally diverse workforce preserve better cater to an increasely diverse guest base, consequently change magnitude market shargon. The insight that a local can provide into the respectable treatment of the local market and also of the mindset of the local consumer is invaluable. lastly, he states that to each sensation culturally different individual brings with him some thing different to the table, and when you combine all these different attri potentlyes, it results in pull out the organization more combative. In a non-business link up line of descent, (Jayne Dipboye, 2004) draw out that increase workforce diver sity is the ethically right on thing to do and also that it is a better way to address race and gender starts. This argument whitethorn seem insignificant considering that the live emulous environment means companies c atomic number 18 more about capital than the right thing to do. b arely (Amaram, 2007) brings up a in truth interesting argument about why corporations ar moving to diversity programs. In do- salutarylyer to ethical and social responsibilities, he says that these programs have become necessary to avoid legal problems craply due to civil rights laws. Furthermore he states that to have competitive advantage corporations have been forced to bring forward impertinent strategies to bring out the best from a diverse workgroup and avoid conflicts. all the same at the Govt. level it has been realized that effectively managing cultural diversity is racy to economic succeeder. One example is the Australia Govt. policy, where diversity way is governed by a state p olicy namely, Productive Diversity. The aim of this policy is to exculpate full use of the experiences and skills of people raised overseas, therefore gaining price unretentive Intel on international markets. (Leveson, Joiner, Bakalis, 2009)However what has been discussed above is based on theories and rhetoric. Is there any immobile evidence that cultural diversity run aways to a prosperous organization? The dish up is a big whitethornbe. Countless explore and studies have looked at this issue from many different angles, each with their testify differing conclusions. After reviewing various researches on this issue Jayne Dipboye (2004) came up with four conclusions regarding the relationship amidst cultural diversity and organisational performance.Increased diversity does not necessarily remedy the talent poolIncreased diversity does not necessarily shew commitment, improve motivation, and reduce conflictIncreased group-level diversity does not necessarily lead to highe r group performance.Diversity does not necessarily improve organisational performanceA study (Choi Rainey, 2009) suggests that it all comes down to the type of diversity i-e race, gender, religion and so forthtera The findings were consistent with previous research (Milliken and Martins, 1996 Williams and OReilly, 1998) that suggest that racial diversity is inversely pro fractional to organizational performance due to less cohesion within the group and more conflict. It should be noted hitherto that this study was specifically based on US federal agencies so it cannot be considered to represent the global business environment trend or even the national business environment of the US as a whole.Various different studies on the subject matter provide some very interesting results. McMahon (2010) in her article surveys the more recent studies on diversity. Here I would like to talk about two of them. First, (Richard, 2000) carried out a research on the US banking industry. He chos e 63 banks from 3 states based on 3 different factors California (high racial diversity), Kentucky (low racial diversity) and North Carolina (financial wealth). The study showed that there was no direct relationship among diversity and performance instead it depended more on the wets business strategies. When the scheme was more focused on offset there was a absolute relation between diversity and performance unless the result was inverse when the dodge shifted towards downsizing.Again, the above study, even though regarded as valuable information, sole(prenominal) embarrassd the US banking industry so it cannot be said to identify the complete picture, (Richard, Murthi, Ismail, 2007) therefore fullned the scope to other industries and studied the relationship between racial diversity and intermediate as well as long term firm performance and the role that environmental condition plays in this. The results showed that at high as well as low levels of racial diversity, th ere was a curvilinear positive relation between racial diversity and intermediate firm performance. The result also showed a positive correlation between racial diversity and long term firm performance. But these results were dependent on the type of industry and environmental stability, meaning that the U-shaped relationship between racial diversity and firm performance would be weaker in unstable environments compared to a stable one.Till instantly I have reviewed how cultural diversity affects businesses and also related to the theoretical assumptions to true studies done on this very important issue. In the next portion I go forth try to review literature that primarily focuses on the best utilises for managing diversity.Effective management of diversity is based on experience of commonalities and awareness of differences (McMahon, 2010). Managing cultural diversity involves identifying the best practices. A best practice is a technique, method, process, activity, incentiv e, or reward that is be double-dealingved to be more effective at delivering a crabby outcome than any other technique, method, process, etc. when utilise to a particular condition or circumstance (Wikipedia, 2010). So what are these best practices that I referred to? Amaram (2007) gives a few suggestions about them. He gives particular importance to diversity training programs, giving managers diversity related goals and make sure they are met and finally, giving respect to people of all races, that is, making room for religious holidays, diet preferences etc., because sometimes its the little things that matter the more or less.Jayne Dipboye (2004) suggest conducting a thorough needs assessment so that the diversity initiatives are tailored to the situation. Another suggestion is to develop a schema charge in mind the environmental context of the organization thereby utter the results of the research carried out by Richard, Murthi and Ismail (2007). One more point that th ey affected in their paper was the need for inventing a system to evaluate the personal effects of diversity management strategies developed by organizations so that impudently and change strategies can evolve by diddleing the mistakes from previous ones.CONCLUSIONThe increasingly diverse workplace is consistently posing bare-asseder challenges for an organization. Therefore there is a need for organizations to realize the importance of devising diversity management strategies. These strategies take aim thorough planning and looking at all aspects as well as the resulting consequences that will arise from a particular strategy because a good strategy can do wonders for an organization. At the same time these strategies could backfire if there is a lack of planning or research before implementation. After reviewing the above mentioned literature, one can see that cultural diversity is a complex phenomenon. Its role in improving organizational performance depends on various fact ors, for example, the environmental context, the type of industry, organizational strategies, etc. Furthermore cultural diversity alone does not guarantee immediate, touchable improvements in organizational, group, or individual performance. Nevertheless, achieving a culturally diverse workforce and effectively managing this workforce can yield huge benefits.Audi And Lamborghini depth psychologyAudi And Lamborghini AnalysisThe study aims at under jumping the high societys position in relations to its competitors, as well as working to identify a firms core competencies and other competitively distinct company resources. Also analyze the meshing the firm is generating from various product lines and customer accounts.Also a study of competitive strategy to analyze the industry context in which the firm ope order. These include ostiariuss quintuplet forces, drudgery analysis, analysis of strategic groups of competitors and others. Depending on the industry, the regulatory context is also examined in detail.In Competitor analysis, profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis is done using the benchmarking which also includes examining competitors Product differentiation, Present sales, forthcoming Sales, Marketing and Promotion Strategies, Technologies and other key factors.IntroductionAudi AG is a German manufacturer of railroad cars marketed under the Audi brand. The company name is based on the surname of the founder August Horch, the name itself an position cognate with the English word hark, meaning listen which, when translated into Latin, becomes Audi.(Wiki 2010)The Audi Group with the two brands Audi and Lamborghini is one of the worlds most lucky car manufacturers in the aid segment.Sporty, sophisticated and progressive the reward fomites from the Audi brandCustomers are delighted by Audis technological innovations, pioneering, and externalise a nd build quality. The companys main aim is to satisfy the customer by providing world category technology, designs, safeguard and comfort.Sales of Audi vehicles by region2009Share in shareGermany228,84424.1%Europe without Germany390,01041.1% china (incl. Hong Kong)158,94116.7%USA82,7168.7%Other89,2189.4%Summary949,729100.0%Audi AG todayVolkswagen AG is the largest shareholder of Audi AG which holds over 99 percent of the share capital. (Viknesh 2006)Audis saw a dramatic growth since 2000s, by delivering 653000 to 1003000 in 2008. The gross revenue increase came globally specially 19.3% from Eastern Europe, 17.2% from Africa, 58.5% from Middle East with China coming into action in 2009 with a numerous increase to 108000 vehicles.Audi batchAudi is a manufacturer of exquisite cars beautiful, sophisticated machines that embody technological perfection. Our success is built on our core values of creativity, commitment and enthusiasm, and affirming our customers desires at the hear t of everything we do. We strive to lead the way through constant innovation, scope bare-ass standards that define Vorsprung durch Technik.(Anon, 2008)Mission To delight customers worldwideThis is companys core strategy for the year 2020 and therefore mission statementWe delight customers worldwide.Audi defines the delight in terms of not only its customers innovativeness but also its emotional products which countermand out to be highly high-octane models providing an unmistakable experience that are particularly noted for the familiar attributes of sophistry and reliability.Investor Relations Corporate strategyAudi the number one premium brandKeeping in mind the early availability of the natural resources, Audi has kept in mind its future mission and vision of being a premium brand by actually reinforcing the emotional pull and continuing to delight the customers in long term. (Investor Relations 2010)Present Financials PerformanceAudi starts newborn Year with big results heftAudi acquires a new sales record of 360,760 deliveries in the January to April periodFirst-quarter operational profit up more than 30 percent to 478 millionAudi has do a successful start to the 2010 fiscal year. The Ingolstadt-based car maker sold 360,760 units in the graduation exercise four months of the year a new record for the Company making very good progress with full throttle. Audi also achieved a double digit growth in all of its sales regions all over the world in the first quarter of the year with unit sales up by 23.7% on comparative period put up year. (Quarterly Report, 2010)Future Plans for 2010After being interrupted by the global crisis in recent eld Audi is trying to get back to increase their deliveries by double along with the aim to increase to the operating profit more than that of the revenue and continuing to pursue its goal of becoming the most successful premium brand.In addition to the efforts made to achieve the long-term goals Audi has plan 12 launchings which are very interesting for the customers which includes a mix of performance, luxuriousness, environment friendly and hybridsSituation AnalysisMacro EnvironmentPESTEL framework for Audi policy-makingScrappage scheme for cars 10 years older (United Kingdom)A government funded uncoerced scheme in which the cars older than 10 years could be traded for a new vehicle and a discount of 2000 is given on the new vehicle purchased.Emissions target of 130gm/km carbonic acid gasAll car manufacturers are required to meet an average of CO2 emissions of 130gm/km by 2015 crosswise all their products as a standard.( Alan 2009)stintingalCost of oil plausibly to go up, which may in turn have an effect on consumer buying behaviour.UK still trying to come out of recess, July- September 09 Economic Report shows a fall of 0.4% in GDP. (BBC News)Lowest interest rates in years, 0.5% set by Bank of England, affects consumer savings since March 2009.(Bank of England) companionableEstim ated UK population of 70 million by 2029.Population shift to an increasing older generation.People have a more active lifestyle, related to improved life expectancy. engine roomConstantly Changing EnvironmentTurbo Technology This impressive technology marks a departure from the noisy, thirsty diesel motor engines of the past. The TDI diesel engine delivers ply, performance, low burn employment and reduced CO2 emissions. (Audi 2010)Recuperation While decelerating, the animation created is lost. Brake energy recuperation recycles this energy to lighten the load on your engine. It can reduce fuel consumption by up to 3% and CO2 emissions. (Audi 2010)Aerodynamics Aerodynamic performance plays a vital role in reducing fuel consumption. silklike for efficiency, the cars produce less air resistance, improved handling, better stability and demoralise CO2 emissions. (Audi 2010)S-tronic The revolutionary S-tronic transmission combines the agility and responsiveness of a manual acc ommodatebox with the convenience and smooth, uninterrupted authority of an automatic. Fewer revs per minute and shorter gear changes mean greater fuel efficiency and lower CO2 emissions. (Audi 2010) sinewy Research and Development culture and facilities with high expenditure.Lack of natural resources hence moved to hybrid cars.Global shift to cut CO2 emissions, Kyoto system to work towards reduce green House gases.to a greater extent Greener lifestyle now. lawfulHealth and caoutchouc, Euro NCAP safety test on all cars.Road tax revenue bracketsInsurance GroupsMicro AnalysisSWOT AnalysisStrengthsDiverse ranges of Products Audi and Lamborghini huge Cash Flow PositionIncrease turnover and trading profitsSound Balance SheetLeading quality manufacturersBrand senseHuman resourcesAbilities to turn resources into advantagesAudi pressuriseed quality more than any other carmaker in the past five years, cutting defects by 60%Weaknesses scholarship of High PricesFrequency of the interest of the customer may deteriorate pollution A major issue for the environmentKnowledge of the purchaser with sophisticationAlternate products and technologyOpportunitiesNew products with better technologyGlobalisation origin AlliancesChange of customers preference to cheap and comfortable carsDiversificationNew horizons in TechnologiesThreatsOld and New oppositionFluctuations in Price of FuelNew rules and lawsResult of the oil crisisEconomic recessionMarket shift to globalisationExtremely high competition for customers and resourcesPorter Five Forces ModelPorter explains that there are five forces inherent in a market, which will jointly determine the intensity of competition and profitability of Audi and the automobile industry.The five forces analysis gives an improved understanding of the frequency of competition within the business area. The analysis shows that the industry is highly competitive, with buyers having a very powerful entrance to the broad number of alternate bra nds useable to them.Bargaining Power of Customers flavor at the current situation when UK is trying to get out of the recession and the economy is also becoming stable, the buying power of the individuals will also increase and thereof the consumers will also look upon the various alternatives available in the market along with good bargains. Therefore the buying power force is gradually getting gruelinger.Bargaining Power of SuppliersThis force is rugged for both Audi and the entire automobile industry which take a massive amount of supervene upon suppliers therefore use the aggressive pricing strategy. This results in a very strong competition in the industry. This is a result of very lesser head of differentiation in the product offered. Finally the threats from the suppliers power to bargain which is fairly very low in the automobile industry because of multiple sourcing strategies and use of alternative supply sources for the spares and parts.Degree of contenderThe degree of rivalry is the main point of concern for the company now as all the major competitors (BMW, Mercedes) are doing all their possible bits in terms of new product phylogeny, advanced technology, better services and providing wider choices etc. to bring customers under their umbrella.Threat of SubstitutesThere are a number of models of many brands like Mercedes Benz, Jaguar and BMW which can result in a little threat but they dont possess a great degree of threat as such because it depends on the relation of price-performance of the product. And an AUDI is a name for the people who love technology with luxuriousness. Also changing to a substitute is possible if the substitution cost is low and that is not a logical factor here. Therefore a frequency of threats from the substitutes is low.Threat of New EntrantsFor the new entrants, the customer loyalty is a very important factor to be considered because it is very difficult to convince the customers in this era even if you possess a better than the best peoples product. But also the entry of the one who manufactures cheap cars does pose a significant threat. So, the frequency of the threat from new entrants is on a very lower scale.Competitive AdvantageAudis competitive advantage is in their engineering of building their engines. They are able to induce maximum power out of the minimum resources along with great fuel efficiency.A V6 engine is available, but 9 out of 10 buyers learn the 211 horsepower turbocharged 2.0 liter 4-cylinder, and thats the A4s competitive advantage. The Audi is the only German luxury public house available with a 4-pot motor. While a smaller engine may not be a traditional selling point for a sports sedan, the A4 pulls off the inconceivable combination of being the most fuel economic and quickest entry-level model of the bunch.(Anon, 2009)BenchmarkingBenchmarking is the process of comparing ones business processes and performance rhythmic pattern to industry bests and/or best p ractices from other industries. Dimensions typically measured are quality, time, and cost. Improvements from learning mean doing things better, faster, and cheaper.Benchmarking involves management identifying the best firms in their industry, or any other industry where similar processes exist, and comparing the results and processes of those studied (the targets) to ones own results and processes to learn how well the targets perform and, more importantly, how they do it.Benchmarking allows organizations to develop plans on how to make improvements or adapt specific best practices, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to improve their practices.(Anon 2008)Benchmarking CriteriaSales between Audi, Mercedes and BMW in U.S marketsBMW sold 109,043 vehicle in North the States may which was better than that of the previous but still lagged a 27% when compared to the last year.The sales decrease of a -18.3% gave them a fair chance to stand better in the stand by half of the year.Top Seller Position of Luxury VehiclesCompany may 2008 NumbersPercentageYear-To-DatePercentageBMW90,643-18.1%408,370-20.9%MINI18,348-19.1%79,260-22.6%Rolls-Royce51-53.6%276-27.6%BMW Group109,042-18.3%487,906-21.1%Mercedes-Benz86,300-12.1%383,000-22.3% burnished11,000-14.9%50,100-9.9%MB Cars97,300-12.4%433,100-21.1%Audi AG82,800-6.1%374,750-12.1%BMW as a brand was down by 18.1% in May by selling 90,643 vehicles which further decreased to 20.9% to 408,370 vehicles.In Germany, Mercedes-Benz change magnitude sales by 11% and sold 25,600 with furthermore sales boosts on models such as A-class, B-class and C-class which in turn helped Mercedes-Benz in gaining westerly European Market Share namely Spain, France and UK.Another sales boost of 59% was seen in China where Mercedes Benz grew fastest than to Brazil where it was 39% and Canada 17%.Whereas A udis sales were down by just 6.1% from the previous results and 12.1 from January to May 2008 which was 426,194.In Western Europe, the brand further reduced the gap to last years record result by giving just a -10.9% which was 52,650 vehicles in May. Also, they sold about 243,250 vehicles with a -14.6% which was 284,656 vehicles.Despite generally shrinking markets, Audi was able to sell more vehicles Europe namely Italy with a 7.1% increase, Belgium with a 7.3%, Switzerland with a 7.6% which resulted in the brands premium market share by 3.9%.Audi also increased their market share in US by 2% to draw 8.8% share in the High Import Group by poster a small decline of 12.1% to 7,503 vehicles.In the Asia-Pacific region, Audi achieved strong growth of 24.1% by selling 15,650 vehicles which further went up by 5.4% more.In China also sales in May rose by 27.8% in the uncoiled month which was earlier up by 6.8% resulting in Audi confirming its position in the global market in the Australi a and South Korea. (Global Sales 2009) increase strategyAudis Growth Strategy Outlined Auto ShowsIntensive hard work in key metropolitan areasStrong Dealer intercommunicate Increasing the number of successful dealers who can sell 2000 cars annually. With a strong dealer network, a capable organization, and with excellent products in the future, AUDI will grow. It has pushful plans in terms of the product portfolio, and further more interesting launchings.(Stadler 2010) extra Capacity Plant Decision in view of US marketsBMW- stick a manufacturing ground in USMercedes- Have a manufacturing dress in USAudi- planning to set up a plant in states but keeping everything in mind, the hedging effect in taking the engine and its parts from Europe to America and on the contrary taking a large number of manufactured parts from America to Europe and then paying a 10% tariff is of no use.So, AUDI has to think strategically on this issue, not that it is taking its hands out but has to cons ider a lot many factor than one can image before setting up a plant in America, no wonder American has a large suppuration market and huge potential.BasisBMWAUDIMERCEDESGrowth StrategyIdentifying potential growth.Recognising where our strengths lieMake the best use of every opportunity.Following a hand strategyIntensive hard work in key metropolitan areasStrong Dealer networkCapable organization,Excellent products in the future,More product portfolio and launchingspremium price to our competitorsTo offer customers the best valueTo keep the incentives to a minimum,To reduce incentives further by focusing on charismatic vehicles and customer serviceAnalysis of Growth StrategiesBMW is following a very straight growth strategy where they work in the direction where they have faith in themselves to do it best, they do the best of whatever they start, hold all the resources possible which is their strengths without leaving their roots.Audi follows a growth strategy by increasing their product portfolios, management capabilities, ambitious plans and distribution network so that they can cater to the larger markets as well as groups by increasing their dealer networks.Mercedes has all the more different perspective on their growth strategy where they aim at being the most premium and luxurious brands out of the three and aim to sell cars at their own premium prices and focus on the consumer by providing incentives in the form of an extra-ordinary customer service which they think is their unique selling proposition.Audi can do a blend of their competitors strategies and give their future an excellent shape because all the three companies have different approaches towards their future which makes them different from one another. By doing this AUDI can improve on a wide perspective be it their production, technology, distribution, management or their human resource or even the customer groups.Forecasted Sales in 2020(based on CAGR)Assuming the American market, a lar ge market for the Bimmers and the Mercs remains bad and Audi continues to perform well since. Audi have fairly good chances to overpower Mercedes by 2010. flavor at the CAGR, its pretty sure that Audi will be selling more cars in 3-4 years if everything goes the way it is.Looking at the previous figures it seems that Audi will pass on BMW as well by 2014, but practically speaking it should be around 2016 if it may happen.In the year 2008, Audi had a luxury market share of 9 in the world which was achieved without any incentives when the competitors cars were resting in the lots.It is one thing which the others are not doing or are not being able to do which is Innovation which started from Quattro to FSI to TDI, they have been very smart as to where to spend gold intelligently in the racing and then bring them to the live world cars which would mark the growth of technology.BasisBMWAUDIMERCEDESSales in 2020(in CAGR)Growing fluently with a CAGR of 4.1 percent for last 4 years.Audi is even quicker to achieve this at the CAGR of 6.51% in the last 4 yearsIts been a stand still for the Mercedes with (combined annual growth rate) of 1.4% in the last 4 yearsTechnologyBasisBMWAudiMercedesTechnologyEfficient DynamicsHydrogen 7Dynamic DriveClean EnergyNight resource- Infrared Vision at nightValvetronicsxDriveDynamic Stability Control(DSC)QuattroAsymmetric/dynamic tortuosity distributionRecuperation- charging the batteries with the brake force energyAudi Space FrameTFSI engines were the first to combine petrol direct injection and turbo charging to provide greater power with reduced fuel consumptionDIS with Gear Shift technology international standard ISO 14062 Design for EnvironmentUse of water-based paints with less than 10% closure and the use of solar energy to heat industrial waterBlueEFFICIENCYECO start-stop mouldF-Cell Hybrid TechnologyAnalysis of technologyBMW with a wide classification of technologies namely Efficient Dynamics, Hydrogen-7 work on the perfo rmance of the car in view of the environment with many useful cosmetic technologies that work in the interior of the car and its drivability with a very unique safety bluster such as Infrared Vision at night.Audi on the other hand works on its Quattro technology which makes the car the best thing to drive in any road condition with its complete traction, safety features such as an extra-ordinary Space Frame which is Audi trademark and tested in a wind tunnel at their testing research and development centre along with other technologies for making a fuel efficient vehicle keeping environment in mind.Mercedes has made a little more effort than the AUDI or BMW by reaching the International Standards ISO-14062 for the design of environment by which they take care of all the products used in making their cars till the final disposal of them. Also working towards state of the art F-Cell Hybrid concept technology which can make a vehicle spit zero emissions.Looking at a wide perspective, all the three majors are doing their best to cope up to the changes in the environment and also provide more and more innovations whether its performance, safety driveability or joy. Keeping everything in mind they are laying their growth strategies.Advertising with analysisBMWAUDIMercedesAdvertising MarketingThis article is an analysis of BMWs current global promotional strategy which places huge emphasis on Joy.For very many years, BMW branding centred on Drive, and the manufacturer proudly promoted itself as the ultimate Driving Machine.This tagline became synonymous with BMW, but in 2008 it began to shift its emphasis on to Joy.We are a car company, but we dont just make cars. We, we make joy Thats the story we want to tell the World now.This Audi ad from across the pond stops short of dancing around and singing Audis rule, BMWs drool, but only just.The reason for the gloating, so the ad says, is Audis run of three straight victories over BMW in comparison tests in American ca r time Car and Driver. Wed love it if there was something similar over here..But what we really cant wait for is BMWs response will it remain aloof and keep a dignified silence, or take the bait and scoria Audi off in response.Mercedes Benz understands that its customers are not simply buying a car to get from point A to point B, so before they actually sell a car they must first sell an idea about that car. Mercedes Benz sells their ideas through promotion and advertising. Mercedes Benz wants to change the perception of their brand at the personal level and reposition their brand so that they are more appealing to young professional men of all ethnicities. Secondly, Mercedes Benz is communication to its target market the idea that they are a more approachable, personal, fun, and gumptious brand.Unique selling Proposition or DifferentiationBasisBMWAUDIMercedes.Unique selling Proposition or DifferentiationBMW is able to distinguish its self from its competition because it is mo re then just a luxury car. It has met the demands of customers craving luxury while also offering versatility to customers.An Audi feeling that communicates convenience and comfort to the driver. In view of the high quality claimed for Audi models, everything has to match the shape of the door handles, the sound of the doors closing, the hand wheel for adjusting the back restraints, the indicator lever or the prove quality of the gear lever knob.Mercedes Benz differentiation once centred on the safety, luxury, and clearcutness engineering of its cars, but due to increase competition in the luxury car industry and changing consumer attitudes about the Mercedes Benz brand, that strategy has changed. Now their strategy is more life style oriented and is focused more on presenting the more fun loving, approachable, and energetic side of Mercedes Benz.