BMW case study

Résumé du document

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:

Extraits

[...] We can assume that in this situation, developing countries have a major role to play. Porter's five forces: Company analysis also encompasses a general examination of the forces that influence the organization. According to Porter, there are five forces which determine the intensity of competition in an industry. Lets view the forces in the marketing of BMW: Threats of substitutes: HIGH Presence of many other premium branded cars as Jaguar, Mercedes Benz, Audi Alternative transportation options ( due to the price of oil and concern for pollution) Threats of potential new entrants: LOW The high capital expenditure, reputation and confidence of customers represent to be significant barriers of entry. [...]

[...] BMW case study 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: Automobiles: from small cars to luxury vehicles (BMW, MINI, Rolls-Royce Motor Cars) Motorcycles Financial services An internal and external diagnosis is necessary in order to understand the improvements that are required in the future. [...]

[...] However, low cost manufacturers can be considered as a threat. Extent of competitive rivalry: Threats from the bargaining power of buyers: HIGH Large number of alternative The five forces analysis shows suppliers that the automotive industry is highly competitive. The automotive industry is considered to be an oligopoly. Threats of the bargaining power of suppliers: LOW In the automobile industry in general III) Future recommendations: What are the strategic options available to the company for a better growth in future? [...]

[...] Its strong cash flow position reflects its financial strength. Moreover, this group is the world's leading premium quality automobile manufacturer. 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. [...]

[...] Is it not a waste of time and money? (In 2003, BMW was planning to launch a new model every three months) This internal analysis shows that the BMW is a strong group with real strengths to provide satisfaction to customers. Furthermore, it emphasizes on its competitive advantages which resides in its internal process for designing unique automobiles. II) External diagnosis: Opportunities and threats: Opportunities: New products demand Fast market growth in the luxury sector Globalization which represents an opportunity for market development New technologies in automobiles Diversification ( hybrid cars) - Threats: New and existing competitors Instability in price of fuel Financial crisis: lower access to loans Success of low cost cars Concern for pollution standards - The automotive industry is massive, competitive and it is expected to undergo major reforms in the near future due to globalization. [...]