...Vikash Nahar The New king of Indian Roads: Mercedes and BMW Since the time of its invention, automobiles and more specifically the luxury cars have always captured the fancies of men and the Indian consumers are no exception to this. The Indian luxury car market over the years has evolved from being a humble consumer of a handful of the so called dream machines in the early 1950s to becoming the fastest growing market for luxury cars in the world, in 2010. Two companies that can be distinctly identified in race for supremacy in the Indian luxury car market would be BMW and Mercedes Benz. Baggonkar, S (2011, Dec 02) writes that “Though ballooning inflation and dipping growth prospects are slowing the economy, Germany’s BMW and Mercedes-Benz are betting big on Indians’ voracious appetite for luxury cars.” Though of the same origin, the strategic positioning and performance of both this auto-makers can be categorized into the following: (1) Product innovation, (2) Adaptation to Indian conditions, (3) Customer service and brand image. Though historically,considered conservative and easy to please, the Indian auto consumers of today are becoming increasingly discerning about their tastes and preferences. In addition to design and quality, product innovation is appreciated and preferred. Krishnan, N of Business Standard Moroting, explains in his article,Mercedes enjoyed monopoly in the luxury car segment for 12 years till BMW rocked its foundation by driving past its annual sales...
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...The competitive challenges in the automotive industry and how was BMW affected by it? The case was written by PROF Stefen Thomke and research associate Ashoke Nimgade during the late 1990’s. Hence we shall concentrate on the changes that occurred in the automotive industry during this period, the kind of competitive challenges it created and the effect it had on BMW. Firstly this decade saw Globalization, regionalization and market convergence in the automotive industry– Due to the effects of liberalization, national markets became increasingly globalized. Though this gave companies a chance to expand to new markets, but it also increased the threat of new entrants or increased competition in traditional markets. Hence all car manufacturers were experiencing the boons and banes of the biggest buyer market in history. Next we see the emergence of increasingly diversified consumer aggregate patterns of behaviour – Consumers were no longer accepting standardized products, but wanted products that satisfied their individual requirements and tastes. Target groups thus had to be downsized by companies to attract customers by the products offered. However, because of the increased global competition with a stronger focus on price and not on brand loyalty, consumers generally did not reward companies only for their more individualized products irrespective of price. In other words the customers became price sensitive, were not ready to pay a premium for more innovative products...
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...the pricing and distribution of their products. However, there are not that many small parts manufacturers in this market and therefore, the majority of suppliers to major automotive makers are medium to large businesses. As a result they have some flex in determining product pricing, delivery, and distribution. Power of Buyers - Medium While buyers are individuals and are not grouped together, they still have an immense amount of information available to them regarding the pricing and cost to manufacture a BMW. As a result, buyers do have some leverage in being able to negotiate a purchasing price from BMW. Competitive Rivalry - Extremely High Any competitor in this market is generally a global company with billions of dollars in assets and can compete on any level that BMW can. Furthermore, there is intense competition on all fronts in the car market in general, not to mention the luxury car market. Major manufacturers such as Toyota and Honda are pinching BMW with their luxury segments (Lexus & Acura) in terms of quality product and...
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...CASE STUDY OF BMWi INTRODUCTION: BMW start their work as a business entity in 1917. They entered in automobiles in 1928-29. They first significant aircraft engine then they shift their business to motorcycle and then automobile industry. They unveiled two new models, they launch their electric motoring division BMWi. This i3 is an electric small car and on the other hand i8 is a very powerful sports car. They combine the electric motor with the three cylinder combustion engine. For the reduction of weight the car is constructed with the light weight aluminum, in their structure and body from the strong but light carbon fiber. They also have small batteries. BMW are very much cautious about predicting that there will be a demand of electric car in the future. TASK 1 (1a,1b): Reason behind this decision: The reason behind this decision of BMW to make BMWi is that, they have taken preventive measures to reduce the impact of automobiles on the environment. They want to design less polluting cars by making their existing models into the more efficient along with the environmental friendly fuels as vehicles if future. The possibilities of which are as: electric power, hybrid power (combustion engine and electric motors) hydrogen engine. Now the BMWi has all this, it is relatively simple in production process. It does not involve any press shop, welding shop and the paint work is also in a very small quantity. Mr. Robertson insists that it means, “it is much easier to ramp up production...
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...Strengths BMW is a company with high status branding in the world . For this few year, BMW was have a lot of advertised on their car to the consumers by the way from media to greatly to showing the car that their built for all the car classes. Beside that , BMW group have a high budget to provide for their labour , services or all of the Research And Development . That’s mean that BMW was a company who has enough of fund to invest for the whole company . Moreover , they also have a good skilled of labour to make their products to be more better , if they have lack of skilled of the labour to produce poor products for the company , they can loose the customers . The more they invest, more profit they get it . Weaknesses Everyday BMW is work hard to produce and develop for new technology to the new classes of the car to satisfy for the customers . In long time , who know that if these develop new technology car are going to be a big hit or might be wasting their time and invest for the model that will not to be worth for the future . So , the development and produce cars is the important part whether or not the car will become famous on market . Another weakness of BMW factory is to getting customers to buy the BMW cars at others country . The new technology ‘Hybrid’ , this Hybrid technology will give vehicles save more fuel , but this technology will be more expensive that getting harder to find the customers to buy their product such a high price . Beside that , the...
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...Chaudhary Charan Singh University ,Meerut. (DEPARTMENT OF FOREIGN LANGUAGE) PROJECT ON GERMANY AUTOMOBILE INDUTRY CERTIFICATE OF PROFICIENCY IN GERMAN LANGUAGE SUBMITTED TO: DEPARTMENT OF FOREIGN LANGUAGE SUBMITTED BY: SHIVANK KAUSHIK ROLL NO. - 111754 INTERNAL EXAMINER EXTERNAL EXAMINER INDEX 1.GERMANY 2.GERMAN GEOGRAPHY 3.AUTOMOBILE INDUSTRY HISTORY 4.PRESENT DAY 5.CURRENT MANUFACTURERS(MAJOR/ MINOR) 6.REFRENCE/SOURCES GERMANY Germany officially the Federal Republic of Germany is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate. With 81.8 million inhabitants, it is the most populous member state and the largest economy in the European Union. It is one of the major political powers of the European continent and a technological leader in many fields...
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...board. This accounts for almost 90 percent of vehicle produced thus a scramble for available markets, attention now turns to upcoming economies like Russia, Latin America and Eastern Europe, Governments in developing economies aware of the value of their prospective growth auction off their market share to the highest bidders, like BMW, this investors hoping to increase manufacturing capacities so as to build their intended market bid away their economic returns and in so doing multiply the overcapacity problem on a large scale (Griffin & Pustay 2009). Risks involved in venturing into new markets weigh in and most companies aware of the consequences of losing a market place bid, this either plays out in the company over bidding or throwing in the towel and losing the market. Differentiation Successful ECO-Specialties must emphasize their differentiation. Differentiation means that the marketing mix is distinct from and better than what is available from the competitor; product differentiation is the core to a healthy market share. An abundance of option for the vehicle buyers exists with vehicle models with almost similar functional characteristics, BMW is now forced to manufacture unique products for a particular region at a point in time, and this is to cope with tastes and fickle needs of consumers. This differentiation wanes on their budget heavily since financial consequences of missing a market are disastrous (Prahalad & Hamel 1990). Innovation Commitment to innovation...
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...the pricing and distribution of their products. However, there are not that many small parts manufacturers in this market and therefore, the majority of suppliers to major automotive makers are medium to large businesses. As a result they have some flex in determining product pricing, delivery, and distribution. Power of Buyers - Medium While buyers are individuals and are not grouped together, they still have an immense amount of information available to them regarding the pricing and cost to manufacture a BMW. As a result, buyers do have some leverage in being able to negotiate a purchasing price from BMW. Competitive Rivalry - Extremely High Any competitor in this market is generally a global company with billions of dollars in assets and can compete on any level that BMW can. Furthermore, there is intense competition on all fronts in the car market in general, not to mention the luxury car market. Major manufacturers such as Toyota and Honda are pinching BMW with their luxury segments (Lexus & Acura) in terms of quality product and reliability.ces...
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...automotive industry It is difficult to assess the contribution of the German government to the national automotive industry especially as it has evolved over the last several decades. Germany was one of the first nations to embrace the automobile industry when the technology first emerged in the late nineteenth century. This new technology chimed with the technological orientation of the country which, at the time and as now, was one of the most developed countries in the world. The Germans embraced the practicalities of the technology but also the fun of it and early automobile racing was dominated by German and Italian racers. At the time a number of Marques emerged that have withstood the test of time including, of course, Mercedes Benz, BMW (Bavarian Motor Works), Maybach and so forth. Arguably, and somewhat unfortunately, the greatest contribution of any German government to its national automotive industry - and possibly the greatest contribution of any government to its national automotive industry - was under the Nazi regime (1933-45). The Volkswagen (literally, the People’s Car), democratised automobile use in Germany by bringing to the marketplace a car that the vast proportion of the German public could afford. This had a transformative effect on motor use both within and beyond Germany, and particularly at a time that was only a few years after the end of a devastating economic depression that had hit Germany especially hard. Thus, affordability was very important...
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...BMW Group Information 2004 Employing environmental principles to build cars Holistic concepts that lead to optimum solutions Taking an actively responsible approach to the protection of our natural environment is of fundamental importance to the development, manufacture, use and recycling of vehicles and their components. The BMW Group has thus for many years consistently employed methods such as Life Cycle Assessment and Design for Recycling in its decision-making. The application of these holistic philosophies generates results that are often surprising – and decisive. BMW Group research & development The BMW Group Concept: Sustainable Mobility In every corner of the world, individual mobility is an essential requirement for maintaining economic growth and prosperity. As traffic on the road grows steadily, it is imperative that solutions be found which are compatible with the needs of people and the environment. In this context, the BMW Group pursues a holistic approach in its efforts to entirely eliminate or continuously reduce the environmental impact of its products and processes through intelligent technology-based solutions. Key aspects of this strategy are: • Mobility-based research focused on the intelligent networking of various modes of transport • Improving environmental awareness and safety in the transport sector • Encouraging suppliers and partners to adopt the BMW Group guiding principle of sustainable development. • Further integration of the automobile...
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...environment, strategy plays a very critical role in ensuring the success of a company. This report gives a limelight on the extent to which strategy has contributed to the superiority of BMW in the UK automobile industry. In analysing this, the report will begin with an evaluation of BMW as a premium car manufacturer. The report then employed the use of PESTEL and Porters five forces to analyse the external car industry environment. The internal environment are analysed by use of value chain analysis. Bowman’s Strategy Clock is also explored in understanding the marketing strategy used by BMW Company. Finally, Resource/ competence framework has also been explored in understanding the key competencies and resource capabilities that has enabled the BMW to maintain market leadership position. In compiling this report, major sources of information used were journals, empirical literature and the internet. The findings of this report show that strategy has played a pivot point in BMW’s overall performance. Generally, the report shows that unstable political environment in the UK and the global market is greatly affecting the industry. Moreover, socio-cultural environment greatly affect the industry as consumers are becoming more environment conscious. This has especially reduced the sales volume of BMW. The UK government legal policies have also been addressed in the report. Advances in technology have also spurred competition in the industry thereby reducing the significance of branding...
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...| BMW Strategic Analysis | | | | Management 452.301 | Table of Contents Executive Summary 2 Introduction of Company and Current Situation 3 External Environment Analysis 4 General Environment 4 Industry Environment 6 Competitor Environment 7 Conclusion of External Environment Analysis 8 Internal Analysis 10 VRIN Analysis 10 Financial Analysis 12 Conclusion of Internal Analysis 15 Strategy 16 Identification of Key Problems 20 Recommendations and Implementations 21 References 24 | Executive Summary BMW is known for its manufacturing of premium-brand cars and off-road vehicles under the BMW, MINI, and Rolls-Royce labels, as well as motorcycles under the BMW and Husqvarna brands. Many manufactures such as BMW, Mercedes, and Audi produce cars in foreign markets. The three car makers that are BMW’s main competitors in the luxury auto industry are Lexus, Mercedes-Benz, and Audi. The companies are worried most about the exchange rate fluctuations that threaten their profits if the euro starts appreciating against other currencies. With that, BMW is trying to come out with new technology that keeps them ahead of the competition. To do so, they released what is called Efficient Dynamics to ensure a noticeable reduction of consumption and emissions while simultaneously increasing the performance and driving pleasure of the vehicle (BMW EfficientDynamics). The company has also discovered such items as the BMW ActiveHybrid...
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...Business Plan Research and Development Plan Our organisation is called SPRINT and our vision is to develop and supply the European automotive industry with environmentally friendly luxury cars at an affordable price. We aim to reduce costs for consumers within the market. Our mission statement is; “Sprint is a manufacturer of sophisticated, luxurious machines which pin point perfection in every aspect in our product designs. We strive as a team to deliver the best with the customer’s best interests at heart.” Our main objectives are that we would like to have increased our market share by 15% by 2015 through the launch of our city car. This car will be retailed at £14,500 and is a 3/5 door hatchback with a hybrid engine. We would also like to have increased our factory productivity by 10% each year leading up to 2015. We aim to modify our current product range to meet the new EU emissions law so research will be done to find out what these new laws are. We are not looking at making the cheapest cars, we are focusing on developing quality vehicles with a high value rate. We aim to make our cars more affordable than their competitors, without sacrificing the quality. We will have to carry out in depth research in to the European car industry and the existing companies, especially those with a higher market share and those with lower market share but higher quality products. Our main competitor for the city car is the Mini Cooper S which retails at £18,075 and the Audi A1...
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...product which are the closest competitors of the company's product and the strength and weaknesses of the company's product in respect of its competing products. It can also help company to identify market segments with specific product requirements where new products may be launched by the company. The image that a brand represents is very important in the luxury division of the motoring industry because consumers are not just buying a luxury car, but the image that a particular car holds. The different brands in the luxury division of the motoring industry are likely to hold different positions within the minds of consumers. I will analyze specifically 5 brands in the luxury vehicle market. These brands are: Volvo, Lexus, Mercedes-Benz, BMW and Audi. The 4 most important attributes in selecting a brand of luxury vehicle are reliability, safety, comfort...
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...BUSI 0022 International Marketing Group Paper 2 Hyundai Genesis in Germany Name | UID | BUECHI, Mathis | 2009583263 | KIM, Hojung | 2010555716 | KIM, Mi Song Grace | 2010538603 | MA, Michael | 2010576617 | MCGUIRE, Taylor | 2011973367 | SUNDERRAMAN, Shravan | 2009553945 | Table of Contents 1. Introduction…………….………………………………………..1 2. Germany………………………………………...……………….1 ‐ Target Customers Segmentation Demographic Psychographic ‐ Vignette of the Target Market [Germany] 3. Hyundai Genesis in Germany………………………..…………3 ‐ Global Market Entry Strategy ‐ Product Characteristics Relative Advantage Complexity Compatibility Communicability Divisibility ‐ 2 Important Pricing Objectives & Strategies Pricing Objectives & Strategy 1 Pricing Objectives & Strategy 2 ‐ Channel Structures Key Functions of Each Channel Potential Conflicts Suggested Preventions & Solutions ‐ 3 Promotional Elements Promotional Element 1: Advertising Promotional Element 2: Public Relations Promotional Element 3: Product Placement ‐ Radio/ TV Commercial for the Product Advertising Objectives Advertising Appeals One Planned Commercial for Genesis in Germany ‐ Contrast Marketing Strategies to Those in the Home Market [South Korea] 4. Conclusion ………………………………………………………9 5. References...…………………………………………...
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