BMW case study

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BMW case study

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Abstract
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Abstract

BMW was founded in 1916. The company prospered during World War I as it used to manufacture aircraft engines for the Germans. It started as a small business which has now turned into one of the most famous car companies in the world.

Before establishing any opinion about the company, it is essential to know what its activities are and also about its SBUs (strategic business units); and that can be divided into three:

Internal diagnosis
1. Strengths and weaknesses
2. Resources and competences
External diagnosis
1. Opportunities and threats
2. Porter's five forces
Future recommandations

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Extract

[...] A second option would be the possibility of acquisition or creation of a fourth brand: getting a new brand through acquisition can be difficult to achieve as the group has to identify an appropriate automotive brand that would meet BMW's requirements and also fit with the corporate image; besides, the creation of a new brand is an option and that must match with the group's culture. Without changing its current range of products, BMW can continue to focus on its inherent, current range of products and also keep in mind its existing customers. It can be achieved through improvement of product quality and levels of service along with promotional activities. It also encompasses heavy investments in technologies and R&D. This strategy is necessary for BMW to secure its customers loyalty. In the same way, it is also possible [...]

[...] BMW has expanded its production capacity and its plants to the US (increase of in 2002), the UK and China. In addition, the group has set a worldwide sales target of more than 1.8 million vehicles by 2012 and 2 million in 2020. This could lead the group to the planned route of product development strategy: as it has increased its production capacity, the company could take full advantage of it to exploit its technologies and make benefit from innovation in order to maintain its position as a product innovator. [...]

[...] The BMW Group has its perception set firmly on the premium sector of the international automobile market with a strong presence in the luxury sector. Automobiles and motorcycles which fascinate people all over the world also win legions of new admirers every day. Therefore, strong focus must be given to the customer's needs, and thus help in maintaining the company's position. BMW's main goal is to focus on getting the product to the customer as quickly as possible. BMW also has a program known as the 2 “Customer oriented sales and production process.” By this way, the customer is able to make any last minute change to the equipment and accessories that he has ordered without getting the delivery date delayed. [...]

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