1.0 Introduction
The automobile industry is a complex industry that have high competition I the market. These industry companies have to set their strategies based on their objectives and the competitive advantages in the market. In BMW, they have used innovation technologies in their new cars production, they try to reach customers' needs and satisfactions by implementing different strategies and applying different models. This paper is analyzing various strategies of BMW, focusing on their SOWT analysis in order to evaluate their performance in the global market. It recognized the world over its reputation for the quality provided and its brand name which include three main brands: BMW, Rolls-Royce, and MINI.
1.1 About BMW – Background
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"WORLD MOTOR VEHICLE PRODUCTION - OICA correspondents survey" (PDF). www.oica.net. Retrieved 19 September 2017.
2.0 OT Analysis
2.1 Environment Analysis
2.1.1 PESTL Analysis
Political: The political factors are those who affect the business to give you opportunities or threats. The legal regulations and security measures formulated by the governments to control the automobile industry performances.
• The UAE has become one of the most important models of political stability when there are some nations in the region are suffering from unrest even when there is a presence of a large foreign community in the country. This political stability helped the BMW company to grow with minimal political tension and not having that much of risks in the market. (Opportunities)
• The support of government to the ecofriendly products helped BMW to improve its products in order to exceed the environmental expectations. (Opportunities)
Economical: This factor is related to the economic structure and policies, rate of exchange, and the globally economic growth.
• In 2012, BMW open its largest ever showroom in Abu Dhabi, where there was the highest volume selling market, with a 23% growth and 4,436 cars sold, while Dubai also had an increase of 23% with 4,395 cars sold.
The political factors are the factors that is related to the governments policy which can have an effect on their business. Most businesses keep an eye on any political factors such as any new legislations which have been introduced or any old legislations which could have
BMW has extended fundamentally amid the past a couple of decades. Especially, natural components effecting BMW join extending levels of client concern towards "green" things, effects of non government environmental affiliations, changes in waste organization practices and others.
The main strength of the Geely Automotive Holdings, Ltd. is their focused research and development initiatives. They invest roughly “10% of their annual sales revenue (which is significant when compared to Toyota’s 5% investment)” in research and development and focus much of their company’s efforts on their Geely Automobile Research School and the Geely Engine Research School (Dess, Lumpkin, and Eisner, 2010). These schools allow them to make improvements pertaining to gas efficiency (a huge competitive advantage in the U.S. and European markets), the meeting of EPA standards, design innovation, as well as feature innovations. These are all important things to consider for any company in the automotive
It also includes but is not limited to, voting rates and trends, public opinion and activism of regulatory agencies. These are all cited within Bensouusan & Fleisher’s (2012) text discussing the benefits of PEEST when in the process of strategic decision making. Economic factors include the exchange rates, GDP rates, interest rates and so on. These are all indicators of how the government is using their reforms and implementing their goals. This factor is crucial as economic development has a direct correlation with the standard of living of a country and will affect any marketing objective a company will put in place. A prime example of this is the current global recession, which has increased unemployment and lowered average disposable income per person. Thus making marketing plans less likely to succeed. Social factors highlight an consumer behavior trends and focuses on culture and lifestyle within society. These are important when deploying a new marketing strategy or objective as a greater knowledge of the social trends allows for more understanding of the market situation. Technological includes factors such as research and development (R&D), the pace of technological innovation and more abstractly the number of colleges and universities within a region . With the recent change in the world’s view on the ecological state of the earth environmental
The impact of technology affects the market because people are shifting towards the purchase of environmentally friendly cars. The business level strategy at Honda is in line with its enterprise and corporate strategy. In the motorcycle industry, the corporation is striving to build its products and services very close to its customers in a total of 21 plants that are spread across 21 countries (Hu, B.2013). The corporation also conducts Research and Development (R&D) in a total of six countries. The research and development system is tailored in its approach to producing products and services that are durable and reliable at the same time (Hu, B.2013). The focus of the Honda foundation is to have three main dimensions; social, economic and environmental issues. Environmental regulations Honda conducts its businesses in Japan and throughout the world (including North America, Europe, and Asia). A continued economic slowdown, recession and the sustained loss of consumer confidence in these markets, which may be caused by rising fuel prices or other factors, could trigger a decline in demand for automobiles, motorcycles and power products that may adversely affect Honda ‘s results of operations (Hu, B.2013). Regulations regarding vehicle emission levels, fuel economy, noise, safety and noxious substances, as well as levels of pollutants from production plants, are extensive
By 2007, Porsche produced an average of 100,000 vehicles per year earning it the top slot of the most profitable car manufacturers in the world. Its revenue per car stood at $91,974 translating to $10 billion in revenue (Henderson & Reavis, 2005,
This analysis is essential as it identifies what BMW can and cannot do and its probable opportunities and threats and determines what barrier should be minimize to achieve the desired objectives resulting into positive outcomes
The market environment for the Mercedes-Benz S-class is very solid. The environments that the car is usually sold at are very classy and clean environments. The people are usually looking for hybrid cars that are environmentally friendly. Which is exactly what the S-class provides? It has also recently won an environmental certificate. It is by far the most luxurious car that is completely environmentally friendly. Over 2.7 million S-classes have been produced. It has a high position in the market as one of the strongest and finest brands available. It also has exceptional service quality. It is extremely fast and extremely reliable, that is an industry landmark. The market is growing
Today automobile industry is recognized at global level. For every automobile company it is important to enter into foreign market because of increase in competition if companies will not expand their market they can face a huge loss and every company wants to grow and wants to be recognized all over the world. For example if manufacturers such as Ford, Toyota or Volkswagen expanded their market for growth if such manufacturers had still been dealing in their own country they wouldn’t have been able to generate good profit. And competing globally also helps company to learn new technologies and ideas. Therefore it is important for such automobile companies to grow globally for long term success and competitive advantage.
Advancement and globalisation has shrunk the barriers of business and imagination. It has aligned sellers and customers and marketing is playing a strategic and major role as a forceful and appealing command which is continuously adopting changes and advancement in different businesses and different levels of each business (Kim & Ko, 2012). Beer, J. E., Schumacher, T. & Liyanage, J. P. (2012, July) defined that there is a wide range of big and small organisations and companies in the automobile industry that are designing, developing, manufacturing, marketing and selling vehicles. In addition, this industry has a remarkable contribution in economic sector by revenue.
Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) headed by Mr. Kenchi Ayuka, who is the current CEO; is a subsidiary of Suzuki Motor Corporation, Japan. MSIL has been the market leader in the Indian car market for over two and a half decades and counting. Maruti Udyog Limited (MUL), India’s finest and Asia’s largest automobile industry was established in 1981 by an act of parliament. MUL, the first automobile company in the world to be honoured with an ISO 9000:2000 certificate, also as mentioned above is a subsidiary of Suzuki Motor Corp (holds a 54% equity stake). The Government of India remains a significant equity stakeholder (10%). The company has two manufacturing facilities located at Gurgaon and Manesar,
One of the most important external threats is the political and legal threat. Political and legal threats could be local or international. A business can be affected by any political or legal changes in any country that it has a relation with. As a result, businesses should acquire political skills and be able to analyses and predict changes and respond accordingly. Political skills empower businesses and may improve their performance and provide them with an advantage in the market. “Companies are beginning to recognize the impact of political issues upon international ventures”. Weiner (1992).
The SWOT analysis highlighted the following as the main drivers of change for General Motors
First of all, the company we chosen is Nissan Motor Co., Ltd which usually shortened to Nissan is a Japanese multinational automobile manufacturer headquartered in Nishi-Ku Yokohama, Japan. Nissan was founded since 26 of December 1933. Nissan currently manufactures vehicles in 20 countries and areas around the world including Japan as well. In addition, Nissan also offers products and services such as automobile products, marine products, and related parts in Japan and also internationally in more than 160 countries and areas worldwide.
BMW was established as a business entity following a restructuring of the Rapp Motorenwerke aircraft manufacturing firm in 1917. After the end of World War I in 1918, BMW was forced to cease aircraft-engine production by the terms of the Versailles Armistice Treaty.[4] The company consequently shifted to motorcycle production as the restrictions of the treaty started to be lifted in 1923,[5] followed by automobiles in 1928–29.[6][7][8]