Business Strategy of Company BMW Group Essay

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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). Tangible Resources are physical and financial assets that BMW uses to create value for the customers. In 2012, BMW’s financial report shows a sharp increase in revenues by 11,7% reaching a total of €76,848 million, instead of €68,821 million recorded in 2011 and with respect to the Group’s earnings, its Earnings Before Interest and Tax (EBIT) rose by 3.5%, from €8,018 million in 2011 to €8,300 million (Appendix III). In this way, the …show more content…

In order to reduce the supply cots since the transportation cost of materials is reduced (BMW Group, 2012). This stable outlook, that BMW presents, strengthens the company’s creditworthiness for both short-term and long-term debt and, in turn, its ability to refinance its operations at favourable conditions. Intangible Resources are much more difficult for competitors to imitate which include human resources, innovation resource and reputation resources. BMW was ranked as the fourth most reputable company in the Rep Trak100 report of 2010 and 2011. In the 2012 Rep Trak100 report, BMW being ranked as number one, with an excellent reputation score of 80 out of 100. 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. Finally, the competences are the skills that the company deploy its resources effectively. From the skills element’s viewpoint of BMW Group possesses knowledgeable, high quality and skilful staff, as well as the strong brand image and product design which make the Group competitiveness. 2.2.2 Competitive Advantages According to Porter (1985) a company can apply three generic types of strategies to protect itself while competitive force is a key issue of the management. To achieve this position a strategy based on competency must be accomplished

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