Bmw Case Study Analysis

With a wide variety of vehicles and manufacturers due to low switching costs, the bargaining power of customers is very high in the automobile industry. Also foreign brands are selling vehicles in the Indian markets, adding to the bargaining power of customers in this industry. Thus the value created by the firm lies in adding differentiating features by innovating and increasing the customer’s willingness to pay while reducing the supplier’s opportunity cost.

significant improvements in the product line. BMW wanted to position itself as the "best" rather

Q.1 What are the causes and consequences of BMW’s quality problems with newly launched products? What should be done to improve “launch quality”? (583 words)

The industry for superior luxury cars is a highly exclusive one with a few automotive makers making their presence felt. The major market share is held by Porsche which is known to have formidable rivals like Benz and BMW. The SUV supercar segment is a highly evolving one where manufacturing style localities and units are the decisive forces that ultimately culminate towards the cost of the car.

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.

Competition is good for producers but better for consumers, more competition in the market means more: ideas, channels of distribution, market stability and competitive (lower) prices for consumers. Ultimately, healthy competition forces producers to offer better products and services at lower prices. Automobiles provide people with “…aspirational value in addition to a basic mode of transportation…” (Reinhardt, Yao & Egawa, 2006) consumers make purchasing “decision based on the styling, color, and concept of the cars in addition to functions and pricing” (Reinhardt, Yao & Egawa, 2006). So far, TMC has been trying to catch up with Honda and Nissan in the ‘innovative’ department. Let’s not forget the criticism the company previously faced for offering its customers “…proliferation of look-alike cars…and following rather than setting a trend” (Reinhardt, Yao & Egawa, 2006).Since, Mr.

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.

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 changes would you recommend in the way BMW develops new models? What attributes of newly launched products would you expect to improve as a result of these recommendations? Which attributes might deteriorate?

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.

BMW face though competition in US market after try to improve the situation by introduce number of new model to the core series, adjust pricing so it can compete, reorganize the dealer network and introduce new series of car to the market. Now we have a chance to focus on brand campaign call “BMW films” which is very successful campaign base on number of people who visit the web site and number of people who want more information about BMW.

BMW marketing veers towards standardization rather than towards adaptation although it has a combination of both. The aesthetics for instance on its websites and the rest of its marketing mix are similar on all its material reflecting standardization. The classic design accords with the image of the company and does not differentiate according to specific country. So, for instance, users switching from the Taiwanese website to the American one will find the same design. The dominant colors of BMW, too - blue, black, silver and grey- remained the same regardless of country, and the pictures are the same too

In phase 2, the company faced the challenged of sustaining the hype around its new car and ensuring that potential customers actually purchase the Z3 when it is available. After reviewing the advantages and disadvantages of both marketing methods (traditional and non-traditional) and considering the success of phase 1, it is recommended for BMW to continues use the non-traditional approach and use minimum traditional strategies.

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.