BMW And BMW: The Differentiation Strategy Of BMW

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Differentiation Strategy BMW adopts differentiation strategy that gives unique qualities and valued by customers. In car manufacturing industry safety, style or efficiency can differentiate the competitors. BMW and Nissan are top in car market, and their ways are different for example, brand image and values. BMW offer price premium for their products because of high quality and innovation that is valued by customers. According to Calne, J (2015) express the value integrated by BMW, is the uniqueness of the product that approve them to charge a premium price for it. BMW prospers in differentiation strategy and has the following internal strengths. BMW have leading scientific researchers and innovative team that gives them reputation in car…show more content…
However, there is some group of customers who held BMW cars as leisure transports to be driven on weekends. And target location in Asia, America, Africa and Europe. BMW focus on the target market segment the business seeks to lodge and different advantage with which it will compete with rivals in that segment. BMW is situated in the prestige segment of the car market with a different advantage based on high performance and uniqueness. BMW as a brand is a status symbol containing an extreme performance, power and design. Focus Strategy The reason why BMW and Nissan both focus on focus strategy is that Nissan target a thin segment and BMW target a broad segment both organisation achieve either a cost advantage of differentiation. Johnson, G and Whittington et al (2014, p 199) explain that both Nissan and BMW are utilizing a focus strategy which give both firms the opportunity to satisfy their customers. Because of their slight market focus, Nissan pursues a focus strategy that have lower size and less negotiating power with their suppliers. BMW annual report (2015) emphasis that, BMW pursues a hybrid strategy which allows them to pass greater costs on to their customers because of non- competitive. Firms that prosper in a focus strategy are able to adapt an extensive range of product development and market segment in order to do better than

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