Outline one possible trade-off Mercedes-Benz may experience from launching four new models of electric-powered cars. - Edexcel - GCSE Business - Question 8 - 2018 - Paper 1
Question 8
Outline one possible trade-off Mercedes-Benz may experience from launching four new models of electric-powered cars.
Worked Solution & Example Answer:Outline one possible trade-off Mercedes-Benz may experience from launching four new models of electric-powered cars. - Edexcel - GCSE Business - Question 8 - 2018 - Paper 1
Step 1
Possible Trade-Off: Increased Costs
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Answer
One significant trade-off Mercedes-Benz may experience from launching four new models of electric-powered cars is the increase in production costs. Developing new electric models generally requires substantial investment in research and development to ensure efficiency and performance. Additionally, there may be higher costs associated with sourcing specialized materials, like batteries and electric components. These increased costs could impact the company's overall profitability if not managed effectively.