Bmw Marketing Strategy

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BMW 11 BMW Marketing Analyzing Mohammad Farmand * SBUs (Strategic Business Unit) “The Munich-based company manufactures vehicles under several brand names, including BMW, Mini and Rolls Royce motor cars as well as, BMW motorcycles”. * PESTEL * Political “German VAT increases from 16 to 19%. Additionally, reforms put further burdens (e.g. increased health service contributions) on customers. This may reduce demand and could have an effect on the automobile industry. Political climate in Europe had a huge impact toward BMW who has to expand more production in the US and China”. “In late 2006, the European Commission announced that it would regulate the level of carbon dioxide (CO2) emissions from automobiles sold…show more content…
BMW welcomes the continuation of this exemption and believes that an independent, professional and successful dealer network will continue to provide the best customer-oriented system of distribution”. * P5F “” * McKinsey’s 7S matrix * Strategy “The overall strategy of the BMW Group is called strategy number one. The strategy was introduced right before the financial crisis appeared, in 2007. It is a strategy, which does not only focus on key numbers, but also on soft issues, as ensuring employee satisfaction and sustainability along the value chain. The strategy number one has set up the ambitious target of achieving a return on capital employed (ROCE) of 26% and a profit margin of about 8-10% in year 2012.The BMW Group wants to bring down material costs with 3% annually. This would mean a cost reduction of about 750 million €. Another cost reduction of about 500 million € is targeted in the area of human resources, where workers will be laid off. Additional cost reductions will be achieved through the use of standard components, benefitting from the economies of scale. In conclusion, the BMW Group is trying to bring down costs in many areas in order to achieve a higher return rate on invested capital”. * Structure “BMW has a typical corporate structure and is comparable to its competitors in many ways. They have several boards and of those the most important is the management and
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