Case Study Report
Strategic Management 313
Unit Index Number 3522
Semester 1, 2006
BMW Automobiles
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Group Members
Daniel Smentek, 13264679
Melanie Bernroitner, 13264682
Marie-Charlotte Neumann, 13264640
Submitted on, May 16, 2006
Table of Contents
Executive Summary 4
Introduction 5
BMW and the Automobile Industry 6
Aspects of the Automobile Industry 6
Historical Background of BMW 6
BMW in the Global Environment 9
General Environment of the Automobile Industry 9
Five Forces of the Automobile Industry 14
Competitive Structure of the Automobile Industry 17
BMW’s Direct Competition 22
BMW’s Resources and Capabilities 25
Tangible Resources 25
Intangible Resources:
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Facing that most autos were well built and reliable, quality took no longer centre stage in the mid 2000s. Hence, customers focussed on design and brand reputation. Thus the issue of brand identity became the most important competitive factor in the automobile industry.
Historical Background of BMW
On 7th March 1916 the German manufacturer of Automobiles and Motorcycles - today known as the ‘Bayrische Motoren Werke AG’ (BMW AG) - was
BMW was found in 1913 by Karl Rapp as an aircraft engine design shop. After WWI, it started building
In terms of quality of new cars launching and customer satisfaction surveys (refer to Exhibit 5), ranking of Toyota was 1st and 3rd respectively in 1989 comparing with BMW was 19th and 10th. Toyota was successfully applied Total Quality Management (TQM) for branding on these two aspects. Recommendations as per our findings have been discussed for improving of quality launch coping with suggested strategy. Imitation of Toyoto’s TQM would facilitate the process of BMW in the following three ways.
The branded product at the heart of the SLP is the Ford Mustang. The Mustang was first introduced in 1964 and has become one of Ford's most iconic brands (Damian, 2006). Automobiles in general are a good subject for the study of branding because the car itself changes every year, but the brand does not. Over time, specific brands become associated with particular attributes, in terms of product category, positioning, price, and in the case of cars their styling, design and the lifestyle attributes that are associated with that vehicle. The Mustang has gone through roughly five iterations, and is currently in its fifth generation (Markus, 2010).
Try a company that provides repair service using the best quality brands and all types of replacement fluids and parts, so when a problem occurs, you can receive immediate service to get you moving again.
Since an increasing number of people focus on brand names instead of product, brands become important elements for customers to choose products (Carroll, 2008). When customers trust the brand, the benefits for the manufactures are generated. In the first place, brands can be used by products as the tool to identify and differentiate themselves from various products. Secondly, brands are helpful for companies to build a competitive advantage (Bick, 2009). Therefore, organisations take more attention to branding.
BMW Group is one of the largest and most successful multi-brand automobile manufacturers in the world, headquartered in Munich, Germany. Just like many other
What are the causes and consequences of BMW’s quality problems with newly launched products? What should be done to improve “launch quality”?
In SPORT mode, the thrust and brake regenerative energy are their peak and thus it is the ideal mode when charging the battery. In HYBRID mode, the battery is charged via by brake energy regenerative, thus not much energy is fed back to the battery in this state.
Bavarian Motor Works (BMW) is a Germany-based automobile, motorcycle as well as engine manufacturing company which was incorporated in 1917 (Franzen,2007).The company is headquarters in Germany at Munich, Bavaria. BMW also manufactures the Minimarque and is Rolls-Royce Motor Car's parent company. The company is noted by Markets and Research (2009) to be the world's largest premium car maker. The year 2006 saw the company confirm its position as the global leader in premium car manufacturing in the automobile sector with record sales as well as profits that were in excess of 4 billion (BMW Group,2007). Since its humble inception, the company's brand name has stood for one thing in the mind of the consumer: sheer driving pleasure. This is because for several drivers, owning a BMW is like owning a brand which can be equated to efficiency, quality as well as engineering expertise (Trout,2005).BMW therefore has maintained its position as the be the world's leading premium car manufacturer in terms of volume and sales (BMW Group,2011).BMW's three automobile brands namely BMW, Rolls-Royce and MINI are noted by the group to have set new individual records. A total of 113,000 clients are noted to have purchased a Husqvarna or BMW motorcycle. BMW Group (2011) also noted that their Financial Services subsidiary also contributed to their success in global sales.
BMW has embarked on a mission to cut its notoriously long product development time in half utilizing a newly developed system code named "Digital Car". Senior management has decided to utilize the new process on the 7-series platform. In order to accomplish this goal, BMW is preparing to take advantage of the latest computer technology in car development. At the forefront of the new plan is a debate over the use of computer-aided-styling (CAS). We recommend that BMW implement the Computer Aided Styling system and processes into their production development program.
BMW (U.S) Holding Corporation is a franchise of the high-end performance based global automotive company BMW. For the first time in its history, BMW is to launch its first American made car, the BMW Z3 Roadster. Having only made cars in Germany, this time the car is to be assembled in Spartanburg, South Carolina. BMW’s objective is to expand its market share in the U.S., make the brand name more global and improve its dealer network. With this in mind, the company developed a two phases launch plan for the BMW Z3 Roadster.
people love its cars now not only for their stylish seems. it is due to the fact they are full of luxury, consolation, fashion and technology. Hollywood has also played its personal crucial position in making BMW famous. There are three vital areas that BMW has constantly excelled in. they're a generation, product best and an exceedingly professional body of workers. these are also the main motives behind its fulfillment.
BMW is one of the most widely know luxury class car manufacturers in the world. They have great branding strategy and technology but the entrance of Japanese manufacturers in the U.S. auto market creates a problem for BMW. Japanese companies have luxury cars that are lower in price and maintenance and they have the technology to compete with these German vehicles.
However, due to its unique targeting strategy, it has not win compatible brand recognition among the public. Although Audi enter much earlier than BMW and Benz in the luxury car market, its marketing strategy limited increase of public brand recognition even Audi has over 100 years’ history. Besides, although its styles are highly accepted by the targeting customers, there are a growing number of people who can afford luxury cars for family use in China. Lack of vitality is limit of its further market expansion. On the contrary, its major competitor in China, BMW, has launched a series of marketing strategies to promote its high-performance, manoeuvrability, as well as stylish design to attract young people (BMW, 2009) in order to expand its market share. Therefore, although Audi has achieved success in the targeting market, it may consider further development through diversification in product line and advertising campaign.
Series, 3 Series, 5 Series, 6 Series, 7 Series, X3 SUV, X5 SUV, X6 SUV, Z4 (Roadster), and M. The