This analysis is essential as it identifies what BMW can and cannot do and its probable opportunities and threats and determines what barrier should be minimize to achieve the desired objectives resulting into positive outcomes
I. SWOT Analysis:
Strength of BMW:
1. BMW is a well reputed, recognised and a prestigious automobile company in the world and was renounced for the same by Forbes in 2012 and is valued at $29 billion because of its quality and is positioned high because of its brand value and quality.
2. BMW’’s current market position is lucrative as it owns brands like Rolls Royce Motors, Mini Cooper etc and can convert its resources into sustainable competitive advantage in the long run.
3. BMW uses latest and innovative technology in its products that enhances its product quality, creating comfort and luxury for its customers and thus building brand and company reputation.
4. BMW has a well-built relationship with their
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Value Chain Analysis:
Inbound logistics
Majority of the European market is influenced by German manufacturers gor the supply of raw materials for production purposes hence BMW should store regular amount of inventory for just in time delivery this will minimise the huge supply and shipping cost for the company.
Operations:
Bmw is dedicated towards manufacturing a quality and reliable product. Thus the production capacity facilitates BMW to attain its economies of scale as it claims to assemble each unit to provide a finest quality product in 10 days and it has the capability to carry out its operation at 60 hrs per week during low demand and 140 hrs per week during high demand. This indicates that’s the operational function runs smooth in BMW.
Outbound Logistics:
As there is a huge demand for BMW all over the world specifically in developed countries thus Bmw has initiated and successfully opened manufacturing units where the demand is high and in approximately all developed countries like US, Australia, etc .
Marketing &
its brand to more quality-oriented and had adjusted model prices in the view of new
Selection of outside suppliers at the initial stage was crucial. Three advantages would benefit from authorized supplier involvement in design and production process. Firstly, they could foresee major problems in the design cycle by pulling their expertise and methodologies. Secondly, this model embedded quality into BMW’s production system up and down the supply chain. Thirdly, supplier was able to realize the critical connection between quality and profit through high customer satisfaction.
Founded in 1917, the BMW Group is now one of the ten largest car manufacturers in the world and, with its BMW, MINI and Rolls-Royce brands, possesses three of the strongest premium brands in the car industry. The group also has a strong market position in the motorcycle sector and operates a successful financial services business.
BMW Group has its excellent technical system which offers a competitive advantage over its rivals. Training courses are also delivered to all the employees in order to develop new skills and highest quality standards.
The purpose of this essay is to provide a complete analysis of BMW Group. First, some background information about the company will be provided for a better comprehension of this study. Next, BMW will be assessed from a microeconomic point of view: its demand curve, organisational structure, customers, suppliers, strengths, weaknesses and its operating environment. Then, this firm will be reviewed in context of its sector from a macroeconomic perspective and more specifically its market environment, followed by a PEST analysis of other external factors such as GDP, interest rate, cost of raw materials. This study will be further quantified by a ratio analysis in order to evaluate BMW’s financial health. In the end you
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
Bayerische Moteren Werke AG (Bavarian Motor Works), or BMW, is a German luxury vehicle, motorcycle, and engine manufacturing company founded in 1916. The company has its headquarter in Germany, but also has an American facility in Spartanburg, South Carolina. In addition, BMW is celebrating its 100-year anniversary this year. Being in the automotive industry, one would be surprised at how a company values sustainability, especially when it focuses on the interrelationship between the triple bottom line. However, the BMW Group has been named the world’s most sustainable automotive company again by the Dow Jones Sustainability Indexes (DJSI). The head of Sustainability and Environmental Protection, Ursula Mathar, stated, “For us, sustainability is an important part of our identity and our strategy. We have accomplished a great deal in recent years and continue to set ourselves concrete goals for the future … This shows that our activities continue to have an impact and we are on the right track” (The BMW Group). This company defines its sustainable operations by taking social and environmental responsibility for everything they do. The BMW Group has extensive initiatives that affect the planet by reducing its carbon footprint, their profits by effectively utilizing renewable resources, and their people by providing diverse opportunities and protecting self-wellbeing.
Specific Purpose: To inform my audience of the excellence achieved by BMW over the coarse of the past 85 years.
The competitive advantage of this company is creating newest, dynamics and most efficient cars with new technologies. BMWs strategic plan to maintain a competitive edge is to introduce new models in each of its product line.
The history of BMW is one of ground-breaking innovations and exceptional automobiles, including motorcycles and aircraft engines. It has a history with people of vision and of pioneering creation in the world of aviation engineering. Already we can begin to see that the BMW group is a well known and significant player in its market.
The main business problem that BMW is facing is reducing its long product development time. BMW's current design process began
The main strength of the Geely Automotive Holdings, Ltd. is their focused research and development initiatives. They invest roughly “10% of their annual sales revenue (which is significant when compared to Toyota’s 5% investment)” in research and development and focus much of their company’s efforts on their Geely Automobile Research School and the Geely Engine Research School (Dess, Lumpkin, and Eisner, 2010). These schools allow them to make improvements pertaining to gas efficiency (a huge competitive advantage in the U.S. and European markets), the meeting of EPA standards, design innovation, as well as feature innovations. These are all important things to consider for any company in the automotive
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.
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.