Bmw Business Strategy Essay

1856 Words Mar 3rd, 2012 8 Pages


This paper explores the strategies and environmental influences (both Internal and External) of a German car giant BMW, Bayerische Motoren Werke, which has established itself in the niche luxury car market. It has Headquarter in Munich, Germany, with presence all over the world. The luxury car includes both traditional luxury cars and functional luxury cars. BMW is one of the most successful car companies in Europe and worldwide. Despite experiencing the overall sales slump particularly in the German and the Western European Markets, the Group has been able to improve its market share and even increased deliveries to their customers in the vehicle, as well as in the motorcycle sector. The company has built brand equity
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(2008). The new change in automobile industry. The Wasignton Post


Economical factors are related to the economic growth globally and exchange rates prevailing in the industry. Economic factors for the industry are:

• The production of excess capacity of cars give rise to high amount of revenue in new product designs and marketing. So there was bundle of revenue withheld with a low demand than supply. For example the UK automobile market had 80% more capacity in 2003 which led to a freeze of 1.3 billion euro in the automobile industry (Autofacts, 2004).

Autofacts. (2004). Eurpean Car Market


• The increase in the global GDP from 2.0 % to 3.1% .(Statistics, 2009) Statistics, D. a. (2009, July 18). Data and Statistics Retrieved September 20, 2009, from The world bank:

• Decrease in the rate of Euro has held back the European car industry in a big way.

•Downturn in US economy in the US (Copper, 2008)

Copper, I. (2008, August 15). America in recession Retrieved September 21, 2009, from Wealthy daily:


Changes in buying habits of the consumers because of recession in the mature markets.


• Spending on research

• Focus of technological effort

• Modifications or limitation on technology causing environmental pollution

• Rates of obsolescence

• Increase use of

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