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Bmw Swot

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Case 2 focuses on the Bayerische Motoren Werke (BMW) Company. My analysis will define each of the company 's strengths, weaknesses, opportunities, and threats as brought about within the case as well as through additional research.
The history of the Bavarian Motor Works is a history of innovation, dedication and determination. These achievements are reflected in the BMW emblem, symbolizing a rotating airplane propeller from BMW 's early years as an aircraft engine manufacturer. Today, the emblem signifies a global company that annually produces hundreds of thousands of engines, motorcycles, and cars.
May 19, 2003 BMW was about to launch a new version of their already extremely popular 5 series of luxury sedans. The automobile being …show more content…

Reflecting these risks, BMW shares have slid 41% to $32 from a year ago (2002).

Relying on 1 Series. BMW is relying to heavily on one model, the 1 Series to maintain its high margin. They are also realizing profits due to the strong sales of the loaded models of the Mini, but need to diversify, or in other words not keep all their eggs in one basket.

Shared components. Although this can also be identified as a strength it can also be a true weakness. If cars are using shared components or if they are too similar, it could lead to cannibalization of the sales of higher priced models, in BMW 's case the 3 Series.

Leasing strategies. Although BMW has an aggressive leasing strategy, the company relies on selling the car at the end of the lease to the leaseholder. If the sale of the leased car doesn 't match BMW 's high residual value estimate, the company could suffer lower return on cars than it has traditionally achieved. Even though BMW maintains some of the highest residual values in the industry, typically 60 percent for a three-year-old car, it 's unclear what will happen to values if an increasing number of leased cars hit the market down the road. Opportunities
Success of new series. BMW has been successful with the release of the Mini throughout Europe and the US. To continue with this success, they will be offering a diesel version to be released in the spring of 2003. Also, BMW will be offering the new 1 Series subcompact that will go

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