...Differentiation 26 6.3. Proposal 3: Focus 27 6.4. Proposal 4: Synergy 28 6.5. Proposal 5: Branding 29 7.0. MARKETING GOALS 30 7.1. BMW 3 Series Sales 30 7.2. BMW 3 Series Life Cycle 30 8.0. PRODUCT-MARKET INVESTMENT STRATEGIES 31 8.1. Ansoff’s Product- Market growth strategies 31 8.2. Target market selected and why? 31 9.0. STRATEGIC MARKET MIX (Medium Term 3-5years) 32 9.1. Product 32 9.2. Price 33 9.3. Place 34 9.4. Promotion 36 10.0. SALES FORCAST AND FINANCIAL PROJECTIONS 37 11.0. GANTH CHART 39 12.0. REFRENCE 39 13.0. APENDIX 40 1.0. EXECUTIVE SUMMARY This report takes its starting point in the evaluation of the BMW Group through a strategic Market analysis of its best selling model the BMW 3 Series. The outlook obtained from the evaluation is used to create a strategic market plan for the BMW 3 Series. The analysis was divided into two parts: External and internal. The external analysis started with outlining the macro environment which was described using the SLEPT analysis. After the external analysis was finished off, the internal environment was analyzed, this was analyzed according to the C3SPM Model (company, customers, competitors, suppliers, middleman) of the micro environment. The underlying idea behind performing a strategic analysis was to obtain quantified factors, which could help BMW increase the sales of the 3 series and...
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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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...BUS 599 December 16, 2012 BMW Group is considered one of the most successful companies in the world, primarily manufacturing its automobiles in its three brands: BMW, Mini, and the Rolls Royce. The company continues to be a world class performer in luxury automobiles. BMW’s success is attributed to its long-term thinking and responsible actions, establishing a strategy of ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to resource conservation. Analyze the company’s mission and vision statements against the performance of the organization. Then, evaluate how well the company lives out its mission and vision statement. Provide support from the organization’s performance in your evaluation. BMW’s mission statement is: “To be the most successful premium manufacturer in the industry.” The mission statement is mainly designed just as to help the organization to move on a better path. Mission statement is a short-term goal and objective. It is being designed in order clear the actual motto of the business. With this, the business would arrive at hopeful moves so as to make it realized. Mission statement is formed for the sake of stating the fundamental reason behind the establishment of the business. It appears to be the best possible move just as to make people aware about existence of the business. It is a must from the part of the company to get acquainted with...
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...BMW’s revenue performance from a sluggish 2009 sales performance. II. Objectives (Situation Analysis) Introduction Specialized in the production of automobiles, Bayerische Motoren Werke commonly known as BMW Group is globally considered one of the most successful companies in the world. BMW continues to be one of the best players in the luxury automobile sector, growing despite the European markets’ crisis. The group is well positioned in worldwide market with 24 manufacturing facilities in 13 different countries, and it can count on a distribution network in more than 140 countries. Long term thinking, ecological and social responsibility in the value chain, strong investment in research and development, and an effective speed and agility in sustaining the changes in the market, are some on the key reasons for BMW success. The company has always promoted high-performing product trough a high-profile brand since the early stage; this perception is still present and evident in the company’s culture and has always been the guideline to narrow the strategic path of the group. Competitor analysis The German automaker experienced a steady increase in sales in the last few years, as it has always been able to respond to the attacks of its competitors with an increasing level of technology and innovation that characterizes its products. The design is also a fundamental and integrant part of the competitive advantage of BMW. As far as competitors concern, the BMW has always faced...
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...NOVEMBER 1, 2001 STEFAN THOMKE BMW AG: The Digital Car Project (A) “Looks great,” thought Chris Bangle as he walked by a picture of the new BMW 3-Series which was about one year away from its scheduled 1998 launch in Germany. Bangle, a former Wisconsin native, who became the company’s director of worldwide design at age 35, glanced at his watch. In just 30 minutes, he would meet with other senior managers about project recommendations that might revolutionize the way cars had been designed over the past eight decades at BMW. The meeting was in the inner sanctum of BMW’s research and engineering building, the Forschungs-und Ingenieurszentrum, known locally as the “FIZ” (pronounced “fits”). Built in 1987, this massive building centralized the work of 40 facilities previously scattered through Munich. All work from product concept to pilot production occurred in the FIZ. But only a privileged few out of the five thousand who worked in the building had ever visited this corner of the company where the meeting was to be held. Bangle pulled out his card key that would let him pass through a sleek space-age security system that resembled an oval chamber. After negotiating a push card entry system, a set of doors slid close behind him and another set opened up to reveal the styling area—a world of future visions, inhabited by many life-size clay models of cars under development that would eventually come to life on roads of the next millennium. BMW had weathered several storms over...
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...and consequences of BMW's quality problems with newly launched products? What should be done to improve launch quality? Cause and Consequences of BMW quality problems In this case, there are few cause and consequences that BMW face during their production with newly launch products and resulting in some major impacts that puts BMW in disadvantage position when competing with its competitors. One of the reason that affects the launch quality was the designing time duration. In styling, BMW took around 2 years on designing and finalize the launch products which is longest time would be spend on any automobile company. However the Japanese automobile company would likely only to spend no more than 6 month to finalize the products which is 3.5 times effective then BMW. Nevertheless BMW argues that the time were spend in this stage was essential as they have to work from creating a excellent durable design and also to ensure every single components to ensure it fits and matched into the launch products. This slow decision making process by BMW may cause few impact towards the company and even loss. According to Gilani Natasha, he state that business with slow decision making process may cause organization to increase organization cost and impedes performance. Besides that, BMW also will lost their competitive advantage towards its competitors as they could not able to produce as much variety of choice of launch products then the Japanese automobile company because of the time duration...
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...| BMW Strategic Analysis | | | Amanda King, Zachary Conner, Chris Miller, Sulaiman Alsayyari | 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 7 Competitor Environment 7 Conclusion of External Environment Analysis 8 Internal Analysis 10 VRIN Analysis 11 Financial Analysis 12 Conclusion of Internal Analysis 16 Strategy 17 Identification of Key Problems 20 Recommendations and Implementations 21 References 25 | 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...
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...BMW, the Bavarian based luxury car producer is seen as one of the most prestigious, stable and admired companies in the world. BMW takes differentiation strategy to ensure BMW Group's lead over competitors and to actively shape the company's future by creating BMW vehicles that are perceived by customers to be unique. The mission statement of BMW Group is clearly defined: “the BMW Group is the world’s leading provider of premium products and premium services for individual mobility”. Another important point in the mission statement was that “BMW Group will invest substantially in future technologies, new vehicle concepts and pioneering drive systems”. This means that in addition to providing quality services to its customers, the BMW Group will engage in new and profitable areas to enhance the business. Vehicles made by BMW are able to command premium prices the prices of BMW Group are based on a differentiated strategy. This means that they charge extra for premium quality. This difference in prices is due to each cars different engine size, gear levels, fuel consumption, sports version. Premium-tization trend of BMW causes polarization of markets. This trend triggers the consumers to demand and pay much higher prices for the perceived quality because customers perceive that the luxury, sportiness, and prestige of owing these vehicles are something worth paying for. The ability to increase revenues by charging premium prices allows BMW group to outperform its competitors and...
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...Polesie Title: BMW – A Company Analysis Thesis Language: English Background: The automotive industry is distinguished by a highly competitive market. Thus, the actors on the market struggle with increasing cost of production, development and mature markets. With the aim to increase profit margins and reduce costs, Volkswagen, GM and Ford are some companies, which use the same components in different car models and car brands. These companies have in other words succeeded in synergising research and development effects within the company despite car model and business area. By a contrast, BMW, an individual actor, has yearly shown strong financial results and has retained its market shares. This becomes of interest to study more profoundly, in order to find the factors behind a successful company and a strong brand. Purpose: The purpose of this thesis is to analyse the development of BMW during the past five years. Not only are the financial statements taken into consideration. In addition, a comparison to competitors and the market situation is also made. Delimitation and assumptions: This thesis is delimited to an analysis of BMW between the years 2001-2005. The thesis is based on the assumption that BMW is the most successful automotive manufacturer in the premium segment. Methodology: In the study of BMW both primary and secondary data are used. The primary data consists of an interview and secondary data is collected from annual reports. Results and Conclusion: BMW is a well...
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...BMW Company study Abstract: BMW is one of the leading luxury car makers in the market today. This study provides an insight into the company’s history and background. Also it contains an examination of BMW’s quality system, six sigma’s application and an observation of the quality control process throughout the different stages of the production phase. In addition, detailed information is presented on the number of employees and the training they receive before and during their work time in BMW. This project also reveals BMW’s customers relation policy: sharing customer’s feedback, meetings with customers and the adopted strategies in order to assure customers retention. It reveals the company’s place in the automobile market and its position among its competitors. Finally, at the end of the paper, a brief summary is found. It discusses the company’s strengths and weaknesses along with some proposals on how to deal with them. Purpose: The purpose of this thesis is to analyze BMW’s quality systems and quality control procedures. Also it aims at identifying BMW’s place in the market today and its relationship with its customers, employees and suppliers. Methodology: Primary and secondary Data used in this study had been collected from different sources: essays, books, articles and BMW’s annual reports. Results and conclusion: BMW is a well known and highly valued brand and has a high diversity in the products portfolio. It possesses high internal competence and a...
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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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...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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...Analysing Bmw and the Automobiles Industry BMW – the Bavarian based luxury car producer is seen as one of the most prestigious, stable and admired companies in the world. By 2008 the company sold 1.2 million automobiles under its largest brand – the BMW. In 2001 it very successfully launched the new Mini which is the only brand kept after the failed acquisition of the Rover group with sales rising to over 230 thousand in 2008. In 2003 Rolls Royce was added to BMW’s portfolio and sold 1,212 units in 2008 – an increase of 53% compared to 2004 (BMW Annual Report 2008, pp6-7). The company has not only one of the strongest brands worldwide and exclusively high profit margins of 8 – 10% but since 2007 it has been the world's top seller in the premium class (Hawranek, 2008). Automobiles market in the 2000s The next chapter will investigate the main trends within the automobile market starting with a general overview, followed by wider analyses of the environment as well as investigation of the competition in the car market. General overview In the 21st century the car industry can be described as mature, highly competitive and very dynamic. Despite being considered as global, automobile industry constitutes of three major areas – USA, Japan and Western Europe which together accounts for 80% of total sales (Lynch, 2006, p698) as well as almost 90% of total output (Donnelly et. al., 2002, 31). New markets, such as China, South America and Eastern Europe are emerging; however, as Lynch...
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...[pic] MANAGEMENT FINAL PROJECT Submitted To: SIR SOHAIL ISLAM GROUP NO.21 MBA(SECTION A) Submitted By: Sadaf Iqbal 08110012 Kiran Sarwar 08110005 Tayyaba Maqsood 08110002 Muneeba Arshad 08110013 Ayesha Rehman 08110051 DEDICATED TO HOLY PROPHET HAZRAT MUHAMMED (PBUH) & OUR LOVING PARENTS AND TEACHER SIR SOHAIL ISLAM, WHOM GREATNESS WE CAN’T JUST DESCRIBE IN WORDS, BY WHOM ONLY, WE HAVE BEEN ABLE TO TOUCH THIS STAGE OF LEARNING. ACKNOWLEDGEMENTS We have no words at our command to express our deepest gratitude and innumerous thanks to The Most Beneficent, The Most Merciful, The Most Compassionate, The Most Gracious ALMIGHTY ALLAH, Whose Bounteous Blessing and Exaltation flourished our thoughts and thrive our ambition to have the cherish fruit of our modest efforts in form of this manuscript from the blooming spring of blossoming knowledge. We also offer our humble thanks to HOLY PROPHET MUHAMMAD (PBUH), the cause of creation of the universe, who is forever a source of guidance and beacon of knowledge for the mankind. We are unfathomably indebted to our Respected Sir, Mr. Sohail Islam GIFT University Gujranwala for his keen interest, encouragement, co-operative...
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...# 7: BMW Automobiles INTRODUCTION PROBLEM BUSINESS ENVIRONMENT Pestel Analysis Political * Geopolitical tensions and concerns about oil supplies, added to the uncertainty about the political environment due to war. * Employment laws vary in Europe, US and Asia. Economical * The financial crisis reduces the disposable income of consumers. * Taxes imposed by governments due to car’s emissions. * Equity prices fell. * Oil price went up so the derived product’s prices when up as well. Social * BMW have diversified into many different markets and countries meaning that they are dealing with different cultures, expectations, values and incomes. * Customers’ predisposition to select design and prefer brand appeal. Technological * BMW has had to invest in technology in order to maintain its competitive advantage and be able to offer high quality vehicles. * Developing eco-friendly technologies. Environmental * CO2 emission laws * Development of eco-friendly vehicles Legal * CO2 emission laws * Taxation laws in the countries where BWM has presence. As a result from the PESTEL Analysis we can conclude that BMW will require a good marketing plan to preserve their market position. Also, their employees will need to have to skills to develop sustainable technology; they will need to have the knowledge of the current legislation and how to implement it. We can conclude as well that BMW will...
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