This case explores the globalization of BMW, Rolls-Royce, and the MINI. Bayerische Motoren Werke, otherwise known as BMW, dates back to 1916. Today, BMW has more than 125,000 employees and revenues of about $103 billion. With its reputation for streamlined luxury design and performance, BMW sells about 2.4 million vehicles every year. In addition to automobiles, BMW also produces motorcycles and

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter13A: Entry Deterrence And Accommodation Games
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This case explores the globalization of BMW, Rolls-Royce, and the MINI. Bayerische Motoren Werke, otherwise known as BMW, dates back to 1916. Today, BMW has more than 125,000 employees and revenues of about $103 billion. With its reputation for streamlined luxury design and performance, BMW sells about 2.4 million vehicles every year. In addition to automobiles, BMW also produces motorcycles and aircraft engines. BMW’s portfolio includes the BMW brand along with Rolls-Royce and MINI.

Innovation has long been at the forefront of BMW’s strategy to be a leader in the luxury car industry. The company focuses on bringing new features to all of its models and builds on innovations used in its racing program to develop vehicles offering the perfect combination of sporty performance and breath-taking design that live up to the reputation of BMW being synonymous with “driving pleasure.”

BMW’s Rolls-Royce brand, considered to be the most exclusive luxury brand in the world, has a long history of power, luxury, and quality. With the base model Rolls Royce Ghost starting at $250,000, buyers expect handcrafted perfection. In contrast, BMW’s MINI, which like Rolls-Royce traces its roots to the United Kingdom, offers buyers distinctive design, clever solutions, and precise German engineering at a much lower price.

Rolls-Royce's chase of perfection drives the supreme quality, exquisite hand craftsmanship, and attention to the finest detail to maintain its global position as the pinnacle luxury automobile manufacturer in the world. How do you think the Rolls-Royce brand helps, or hurts, other BMW brands globally (i.e., BMW, the MINI)?

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