Research Paper on:
DaimlerChrysler; Case Study

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seen as an ideal match, Chrysler had the core companies of efficiency as well as accessing and selling to the mass market. Chrysler had a chequered history, including a government  bail out in 1979, and difficult market conditions. These have been influential in developing the streamline system, placing pressure ion the way the company operated. Unless it changed the company  would not have survived. The use of IT was a major factor in the development of the company and the increased efficiencies. It was partly as a result of  a desire to increase their own efficiency that Daimler-Benz. Daimler -Benz had a different high end market, where the differentiation was strong, but the methods were not efficient, the development  of new technology had focused on the car development and not the company infrastructure. Research and design may have been a strength for Daimler-Benz, that could benefit Chrysler. Efficiencies and  cost cutting were a core competency of Chrysler, bringing together of these different companies, along with the benefit of a post merger company that had the benefit from a foothold  in different markets, increasing sales and stability as well as allowing the realisations of economies of scope and scale. It is easy to see why and how this merger was  seen as one that could add a great deal of value to both companies. However, it may be argued that the merger details were seen only in this optimistic light,  with a form of irrational exuberance. When it is remembered that Chrysler, although financially weak, was selling 3.2 million cars with a profit margin off $1,600 per car and  producing an operating profit of $5.1 billion, the attraction was high to Daimler who wanted to emulate that success with their own range as well as have a foothold