Assignment
Development of BMW into the leading car company in the UK for luxury class cars
Abstract:
The following report will examine the story of the German car producer BMW. Initiating from its inception to the modern day where BMW is a multinational concern. This report will highlight the internal and external circumstances to which BMW owes its current place as market leader for luxury cars in the UK.
The subsequent analysis is based exclusively on sources collated from secondary research data. Research data consisted of chronicles and literature from BMW, domestic and foreign journals, marketing and market statistics, as well as published company reports. To reveal the success story of BMW, we will explore the concern with
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For this purpose we will compare the company by means of quantitative data with their competitors and provide suggestions to modify the company’s situation.
2. BMW in the UK
2.a The Company
To be able to understand the strategic position of BMW and its subsidiaries and to analyse it later on, it is important to know exactly the eligible market sector. Therefore we must analyse the company and their Strategic Business Area (SBA).
BMW is represented with 35 different models within the international car market. They are covering amongst others the compact car segment with their BMW 1 series. With the BMW 3 series and 5 series they also act inside the medium class car segment. The luxury class is served by the BMW 6 and 7 series. BMW also acts among the SUV car segment by offering 5 different models for their customers.
The market for low-emission, electrical- and hybrid cars is covered with the I3 and the I8, both from BMW (BMW Group, 2014).
2.b The UK Car Market
We will narrow the market to Great Britain to have a precise look upon the company and to analyse it more closely.
For a better illustration of the market shares from BMW and their competitors you may have a look at the following pie chart.
Figure 1: Auto Manufacturer Market Share in the UK January 2012 (GoodCarBadCar 2012)
The chart illustrates the UK car market as of
its brand to more quality-oriented and had adjusted model prices in the view of new
Q.1 What are the causes and consequences of BMW’s quality problems with newly launched products? What should be done to improve “launch quality”? (583 words)
The industry for superior luxury cars is a highly exclusive one with a few automotive makers making their presence felt. The major market share is held by Porsche which is known to have formidable rivals like Benz and BMW. The SUV supercar segment is a highly evolving one where manufacturing style localities and units are the decisive forces that ultimately culminate towards the cost of the car.
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.
The purpose of this essay is to provide a complete analysis of BMW Group. First, some background information about the company will be provided for a better comprehension of this study. Next, BMW will be assessed from a microeconomic point of view: its demand curve, organisational structure, customers, suppliers, strengths, weaknesses and its operating environment. Then, this firm will be reviewed in context of its sector from a macroeconomic perspective and more specifically its market environment, followed by a PEST analysis of other external factors such as GDP, interest rate, cost of raw materials. This study will be further quantified by a ratio analysis in order to evaluate BMW’s financial health. In the end you
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
For future development projects, Carl-Peter Foster should concentrate on BMW’s core competencies of concept design and assembly- then outsource its parts to experienced suppliers who can offer further technological knowledge. In order for BMW to introduce more models more frequently, they need to decrease the lead-time from the concept phase of the car to the release of the final product to the market.
Specific Purpose: To inform my audience of the excellence achieved by BMW over the coarse of the past 85 years.
In efforts to display the pros and cons of owning a hybrid electric vehicle, the BMW i8 will be compared to the Honda Civic Type-R. To start off, the BMW i8 is a hybrid electric vehicle whilst the Honda Civic Type-R is a vehicle that runs on petrol only. Due to the design and structure of the i8, the
As a result of the increased demand of cars, the competition among car companies is becoming intense. Although the market of car is the biggest growing market in the world, there are still some companies who make cars failing year after year. However, there are some outstanding car companies such as The BMW Group performing distinctly.
BMW marketing veers towards standardization rather than towards adaptation although it has a combination of both. The aesthetics for instance on its websites and the rest of its marketing mix are similar on all its material reflecting standardization. The classic design accords with the image of the company and does not differentiate according to specific country. So, for instance, users switching from the Taiwanese website to the American one will find the same design. The dominant colors of BMW, too - blue, black, silver and grey- remained the same regardless of country, and the pictures are the same too
In phase 2, the company faced the challenged of sustaining the hype around its new car and ensuring that potential customers actually purchase the Z3 when it is available. After reviewing the advantages and disadvantages of both marketing methods (traditional and non-traditional) and considering the success of phase 1, it is recommended for BMW to continues use the non-traditional approach and use minimum traditional strategies.
BMW is one of the most widely know luxury class car manufacturers in the world. They have great branding strategy and technology but the entrance of Japanese manufacturers in the U.S. auto market creates a problem for BMW. Japanese companies have luxury cars that are lower in price and maintenance and they have the technology to compete with these German vehicles.
However, due to its unique targeting strategy, it has not win compatible brand recognition among the public. Although Audi enter much earlier than BMW and Benz in the luxury car market, its marketing strategy limited increase of public brand recognition even Audi has over 100 years’ history. Besides, although its styles are highly accepted by the targeting customers, there are a growing number of people who can afford luxury cars for family use in China. Lack of vitality is limit of its further market expansion. On the contrary, its major competitor in China, BMW, has launched a series of marketing strategies to promote its high-performance, manoeuvrability, as well as stylish design to attract young people (BMW, 2009) in order to expand its market share. Therefore, although Audi has achieved success in the targeting market, it may consider further development through diversification in product line and advertising campaign.