BMW Competitive Analysis The automobile industry is the most interesting and complex business sectors in the global framework for analysis. The Japanese cars are now supplemented by luxury models, such as Lexus Infinity and Acura to compete with European cars made by BMW and Mercedes and Audi. In this analysis, I’m going to develop company profile of BMW and its competitors (Lexus and Mercedes-Benz) per Porters criteria.
BMW AG Group
BMW AG was founded in 1916. Today the Company is one of Germany’s largest and most successful car and motorcycle manufacturers in the world. BMW Group owns three of the leading premium brands in the automobile industry: BMW, MINI and Rolls-Royce. They set the highest standards in terms
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The advisory board supports the decision making in the management board. The advisory board consists of 20 persons - 10 are employee representatives and 10 are shareholder representatives. Mercedes and Lexus corporate structure is different as they are brands of Daimler AG and Toyota MC.
Technology Position Today BMW is the leader in technology development and ahead of its main competitor Mercedes Benz, who has been a leader for many years.
Map of Competitors Position:
Future goals Mercedes-Benz is planning to build a new version of its A- and B-class compact cars. They will be launched at European dealerships in 2014. Mercedes' current two-car compact lineup will double in the future. This will include the successors to the current B-class, expected in Europe this year and the replacement for the A-class next year. In addition, Mercedes will launch an A-class coupe in 2013, which will be called CLC and will compete against the BMW 1-series coupe. A year later an SUV, which is likely to be called GLC, should arrive at dealers and compete against BMW X1 and Audi Q3. Lexus are planning to bring at least two new cars to add to their lineup - a coupe and a small SUV, they will also increase their range of sports by presenting a variety of chassis and suspension options for better performance and handling. In addition, they have decided to focus on progressive technology in the future. This will come in the form of
One of the most significant changes may soon appear at the marque’s apex. The LS is the first Lexus model and is also the flagship for the brand, a full-size sedan nearing the end of its fifth generation. A new model is in the planning stages, a huge hint of what that vehicle may look like was revealed at the 2015 Tokyo Motor Show this fall.
Model S, Model X, Model S, and future Model 3 are the only car models in its factory line. And in the future, they have plans to design a cheap electric car, a new sports car, and an electric truck.
The company that chose for this assignment is Mercedes-Benz. Mercedes-Benz is a old company. It established since almost one century ago. Mercedes-Benz is also a well-known automobile company on the world. It also have many competitors such as Audi, BMW, Volkswagen and so. In the following paragraphs will shows the Mercedes-Benz company background, country background, example of PESTEL, Porter’s 5 Forces, Strategic Recommendations and the conclusion.
The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.
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.
According to Peter Theil, one of the most important reason for the success of Tesla Model S is its technology. "Tesla 's technology is so good that other car companies rely on it: Daimler uses Tesla 's battery packs; Mercedes-Benz uses a Tesla powertrain; Toyota uses a Tesla motor. General Motors has even created a task force to track Tesla 's next moves." (Peter Theil)
In order to identify BMW Group’s internal strengths and weakness, here applied strategic capability which combined three keys of resource: tangible resources, intangible resources, and competences. All of these resources enable a company to attain a sustainable competitive advantage (Dess et al, 2010).
Mercedes doesn't only seek for horse power & top speed , it also seeks for taking care of engineering and designing parts . It's a joyful thing to ride a fast car that can go from 0 to 70 in 50 seconds but your car won't be a good performer unless all it's parts are taking a good care in their details .
The European market has its own competitors that include vehicle manufacturers such as Audi A3, the BMW 1 series, Volkswagen Golf, and Mazda 3 .
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
Specific Purpose: To inform my audience of the excellence achieved by BMW over the coarse of the past 85 years.
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.
BMW is currently the 1st most valuable car brand in the world and the 23rd most valuable brand in the world; in 2011 it was the 2nd right behind Toyota. BMW’s brand value increased 10% while Toyota’s brand value decreased by 10%. It currently own “Rolls-Royce Motor Cars” which is a British manufacturer of luxury automobiles and “MINI” which is a British automotive marque which specializes in small cars.
Strength of Competition-Very high. Toyota, Mercedes-Benz, Audi, Jaguar, Porsche, and more have invaded BMW’s market niche.
Audi is one of the world leading luxury vehicle brand that is own by Volkswagen group. It enjoys the same reputation as BMW and Mercedes-Benz in the international market. In China, it expands rapidly during the past two decades. Currently, in the segment of vehicle market for business and governmental use, Audi has achieved satisfactory performance (Hua, 2010). The aim of this essay is to study Audi’s marketing strategy in combination with marketing theories. Firstly, its marketing activity in China will be introduced. Secondly, relevant marketing theories that can be used to explain the activities will also be described. Thirdly, whether Audi’s marketing strategy has achieved