BMW: SWOT Analysis: BMW

Decent Essays
3.2 SWOT Analysis
SWOT Analysis
SWOT Analysis is a method of strategic planning, which helps to estimate factors and phenomena that affect the project or organization. All the factors are divided into four categories: strengths, weaknesses, opportunities and threats. The method includes defining organizational goals and determining the internal and external factors that contribute to achieving them or complicate them.

SWOT Analysis of BMW Strengths Weaknesses
Internal Environment • Strong brand image
• Diverse ranges of products
• Strong product innovation
• Strong influence on consumers through media
• Good reputation for quality, reliability, and service
• High employee productivity
• High-quality suppliers • High cost of raw materials
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This gives the competitors an edge over BMW. BMW is capable of good R&D but the implementation of the researched vehicles takes strategic alliance with different companies which BMW lacks.
Younger generation less brand conscious – The younger generation is more likely to spend the money on electronic appliances then saving it for a premium car.

BMW has a great opportunity to increase its profitability by innovation and alliances. BMW has a great history of alliances such as its purchase of Rolls Royce which don't only produce the world's finest cars but is also the biggest manufacturer of aeroplane engines. On the innovation side BMW has a tie up with alpine among others to style and modify their cars in order to make it more appealing to their customers.

Increasing product portfolio: By increasing their product portfolio and introducing new series in different segments they can increase their sales as there will be more choices for customers under the same brand. Off course, this is the best opportunity for any brand in the market.
Strategic Alliances: This can prove a smart strategy for BMW. BMW can use other company’s specialized capabilities to differentiate their
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