Bmw in China: from Entry to Dominance Essay

5395 Words Sep 14th, 2012 22 Pages
BMW in China: From Entry to Dominance

Introduction
"In the next five to 10 years, China will be the biggest market for all brands and become a big area of competition," said Christoph Stark, president and CEO of BMW Group Region China to the China Daily reporter. "The most important thing is to be highly flexible and take chances, but also be prepared for some possible downturns in the market," Stark said. "For us the most treasured thing is the brand," he concluded.
Hours later, while sitting in his study, overlooking the Shanghai skyline at night, Stark thought back to his comments earlier. As head of the China operations, it was up to him to ensure that the company preserves its market dominance. However, he realized that the
…show more content…
Other than its main production lines, 3 Series, 5 Series, and 7 Series, BMW also has produced an M series line. For example, a BMW M5 is based on the 5 series, but included a modified engine and additional racing options. BMW also introduced the X Series in the mid-1990s, which was a sport utility vehicle. The Z-series is a two-door sports coupe line that was introduced in the 1990s. Other than these new product lines, BMW introduced a dramatic redesign of all its cars in the early 2000s. The concept was called “flaming surface” and it gave BMW cars an even more aggressive and sporty appearance.
In 1973, the BMW plant in South Africa was its first assembly plant established outside of Germany. Soon after this, BMW also set up plants in the U.K. In 1994, BMW set up its first production plant in the US. In 2004, BMW set up its first plant in China, in Shenyang, through a joint venture with Brilliance automobile company. The production of BMW vehicles at the China factory is intended for local sales in China. The four largest sales markets for BMW are China, Germany, the US, and the U.K. In the most recent 2012 first quarter sales report, BMW stated that the company’s China sales have increased 30% year-on-year and monthly sales numbers have already eclipsed that of the US, BMW’s second largest market. BMW’s 2012 first quarter profits rose by
Open Document