...Running head: BMW SWOT Analysis BMW Motor Corporation SWOT Analysis Name Affiliation Date Abstract A SWOT Analysis is used to develop strategies that capitalize on an organization’s strengths, minimize the effects of any weaknesses, exploit available opportunities and defend against threats. In this report, I discuss SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis of the BMW Motor Corporation. BMW Motor Corporation SWOT Analysis BMW Motor Corporation is world-renowned luxury car manufacturer that has obtained a status of superb automotive engineering. BMW Motor Corporation has achieved its status through successful business planning, strategies, and vision by offering new and innovative features to their products. As a car manufacturer, there are numerous external influences that can positively or adversely affect the outcomes of BMW Motor Corporation. Some factors include but are not limited to the state of the current economy, the current and future supply of fuel resources, the supply and demand of automotive parts- and the most demanding of all- the needs and wants of the consumer. If we recall, the United States was hit by a recession that affected many industries including the automotive industry. In fact, the automotive industry appeared to be one of the hardest hit areas during times of recession. In response, The United States implemented a program called the car allowance rebate...
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...Bayerische Motoren Werke (BMW) is a multi-national holding company and automaker company headquartered in Munich, Germany. BMW is a global leader in the premium automotive sector. BMW also markets MINI and Rolls Royce. Rolls Royce is a wholly-owned subsidiary. From its 2015 Annual Report, the BMW Group is comprised of three business segments: Automotive, which includes BMW, Mini, and Rolls Royce as their three brands, Motorcycles segment, and Financial Services segment. BMW’s financial services segment includes car leasing, fleet business, retail customer and dealer financing, customer deposit business, and insurance activities. In 2015, BMW Group sold 2,247,485 units of automobiles and 136,963 units in their motorcycles segment. Revenues totaled...
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...Semester 1, 2006 BMW Automobiles [pic] Group Members Daniel Smentek, 13264679 Melanie Bernroitner, 13264682 Marie-Charlotte Neumann, 13264640 Submitted on, May 16, 2006 Table of Contents Executive Summary 4 Introduction 5 BMW and the Automobile Industry 6 Aspects of the Automobile Industry 6 Historical Background of BMW 6 BMW in the Global Environment 9 General Environment of the Automobile Industry 9 Five Forces of the Automobile Industry 14 Competitive Structure of the Automobile Industry 17 BMW’s Direct Competition 22 BMW’s Resources and Capabilities 25 Tangible Resources 25 Intangible Resources: 28 Capabilities 29 Core Competencies 30 Potential Action Steps for BMW 33 BMW’s Strategy towards Success 37 References 41 Appendices 45 List of Illustrations Figure 1: Report's Course of Action 5 Figure 2: Labour Costs in EU Countries 2005 11 Figure 3: Outcome of General Environment Analysis 14 Figure 4: Evaluation of Porter's Five Forces of Competition 17 Figure 5: Strategic Map 20 Figure 6: Profit Margins 26 Figure 7: SWOT Analysis BMW 2006 33 Executive Summary The following report analyses the automobile operations of the BMW group in regard to its competitive position in the automobile market. BMW is a German premium car manufacturer comprising the three brands BMW, Mini and Rolls-Royce. The...
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...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 the aid of the SWOT-Analysis and of course using the 5-Forces according to Porter, to compare BMW with their competitors in the same product category. Furthermore we will use the PEST Analysis to scan the external macro-environment in which the company is operating. In addition to the outline above we will examine several important findings of our research. For example the strong dependency of BMW to foreign markets, these markets contribute 81% of the total turnover. (Schmid, Grosche et al., 2008, p. 16) Also, we can examine the reasons leading to a 4% increase in sales in the trading year 2012, operating within the premium segment of the UK to which they already had a lead (BMW Group, 2013). We will discover why the strategy of BMW is superior to their...
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...Final Project Marketing Plan BMW has always been premium brand oriented company. It manufactures three brands in BMW, MINI, and Rolls-Royce. These brands occupy various high end market segments from small car to luxury premium car. This leads to BMW become the only both premium car and motorcycle manufacture. Each brand within BMW has its own clear brand image. Its products have rich product connotation in aesthetic and dynamic design, dynamic performance, technical content, and overall quality. Thus, it can provide customer with practical value. Build on this basis, BMW can expect higher margin and continuing to maintain profitable growth and ensure its independent status. SWOT OF BMW The SWOT analysis is a sum up of the external and internal analysis. Moreover, the SWOT analysis will be used to manipulate the strategic findings in order to identify which areas are of particular interest for the BMW Group. This covers both the identification of the best opportunities and the biggest threats to the organization. The SWOT analysis will put things into perspective by identifying, which threats and opportunities should be dealt with right now and which should be a concern for the organization in the future. (http://pure.au.dk/portal-asb-student/files/10730/Valuation_of_BMW.pdf) The internal factors to...
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...pricing strategy of BMW Published: 23, March 2015 2. INTRODUCTION AND SCOPE OF THE PROJECT The topic that has been chosen for the project is related to the car industry i.e. to research the business strategies of BMW. BMW is the leading premium car manufacturer in the world. The report will look at the current business strategy that BMW adopts and also the future strategy of BMW Group. Business strategy has been defined by Johnson, Scholes & Whittington in their book "Exploring Corporate Strategy" as "a strategy that is concerned with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc." In this project, the author will research the marketing and pricing strategies of BMW Group. Also the markets BMW target and how BMW group as an automobile industry faced the recession period. The project will also look at the growing competition in the automobile industry and the major competitors for BMW Group. The marketing strategy of BMW Group will include their segmentation, target markets, marketing mix and by using SWOT analysis, the author will describe the advantages and benefits it is delivering to its customers and also its disadvantages. The pricing strategy of BMW will also be described. BMW adopts a differentiated strategy so the author will describe how it affects the prices of BMW cars. The project...
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...profits from the IC during the first year of execution, Shaver should look at the feasibility of continuing the program. Problem Statement Initially, BMW’s Individual Collection program (“IC”) showed promise. However, in the third year after the program was introduced, sales are lagging due to poor dealer participation and lack of corporate support. BMW offers few financial incentives to dealers and retailers received poor training. The IC only focuses on the luxury car buyer, ignoring performance car enthusiasts. Jeremy Shaver, product planning manager for BMW Group Canada, mustdevelop a marketing strategy to revive the IC, and ensure corporate and dealer support. Situation Analysis Objectives and Goals Jeremy Shaver’s objectives are to determine which segment(s) of BMW’s customer base will respond to the IC, develop a marketing strategy in response, and win the support of dealerships and senior personnel. BMW’s goal is to optimize income from the IC, and ensure its marketing is consistent with its overall brand image. SWOT Analysis The Individual Collection has the following features: Strengths: • Uniquewithin the industry • BMW has a broad network of retailers • Loyal customer base •...
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...171 a 1 Question 1 - Success of the BMW Group 1. Introduction The BMW Group was founded in 1917 and today is one of the leading. automobile and motorcycle manufacturers worldwide with a workforce of more than 100,000 associates in over 100 countries (BMW Group 2012). The company possesses three of the stron gest premium brands in the car industry, BMW. MINI and Rolls-Royce, as well as holding. a strong market position within the motorcycle sector (Innovation Leaders 2011). According to Linkedln (2012) the company aims to create profitable growth and returns that are above-average by focusing on the premium segment of the automobile market internationally. 2. Approptiate Measures for Success 2.1 Revenue and Profit According to the BMW animal report (2011), the company sold 1_668.982 automobiles and the overall revenue for the compan y was e68.8 billion at the end of the 2011 financial year, with the net profit standing at 64_9 billion, Furthermore the report shows that the 2011 fiscal year was the best in the history of the company, with sales volumes, revenues and profits reaching, new highs and exceeding annual targets set by the BMW Group. This is reinforced when comparing current profits to those before the worldwide economic recession; net profit in 2007 was E3,14 billion, meaning 2011 showed a 51_7% increase in profit from that year. This is a clear indication of the recent success of the BMW Group on a financial basis, as the company is outperforming their set...
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...Marketing Plan for BMW 3 Series Dipanjali Biswas 2014143 Disha Divecha 2014144 Eden Jacques 2014145 Gaurav Nolakha 2014146 Ghanishtha Agrawal 2014147 The slugfest between Germany's Big Three automakers in India has a new winner. After leading the Indian luxury car market for four straight years BMW has dropped to the third position. The new leader is Audi India, followed by Mercedes, which has also moved one place up. Both Audi and Mercedes have been working feverishly to gain better market share in the country. To this end both Audi and Mercedes opened several new dealerships across the country. Mercedes currently has the largest reach as far as service centers and dealerships are concerned. For Audi, its SUV line up has been a strong point as well. Things, however, could easily change for BMW in the coming months due to introduction of new vehicles. BMW recently launched the 2013 7 Series luxury sedan facelift in the country. Furthermore, it has new vehicle launches planned. A report, by TOI, dated 26th August 2014, stated that consumers from smaller towns like Ludhiana, Coimbatore, Surat and Pune are driving online search for luxury cars in India with BMW and Mercedes-Benz emerging as the favourites at the top of the list, tech giant Google said today. According to Google’s trends, conducted between January and August 25, German car makers BMW and Mercedes-Benz were the most searched luxury car brands in India, followed by Tata’s Jaguar...
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...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 the competition of the compatriots manufacturers such as: Mercedes, Audi, and Porsche which benefit...
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...SITUATION ANALYSIS: CURRENT MARKET POSITION: • BMW has achieved market leader position in the luxury car segment for 2 nd consecutive year. • 43% of market share in luxury car segment. • 73% growth over 2009. • Sales of 6426 units in 2010. Archrival Mercedes Benz sold 5819 units. • Presently employs 400 people. • Present in 20 locations across India. Launch Date: 23rd December 2010 Price: 22 Lakhs-32.5 Lakhs Models: X1 sDrive 1.8i X1 sDrive 2.0d X1 sDrive 2.0d Exclusive JOY IS WHAT YOU MAKE OF IT SITUATION ANALYSIS: COMPETITOR STUDY: SUV Engine Power Price (in Lakhs) BMW X1 (Petrol) 1.8 P 147.5 22 BMW X1 (Diesel) 2.0 D 174 23-32.5 Skoda Yeti 2.0 D 140 17 Ford Endeavour 3.0 D 153 19-20 Chevrolet Captiva 2.0 D 150 19 Toyota Fortuner 3.0 D 170 21 Hyundia Santa fe 2.2 D 197 21 Mitsubishi Outlander 2.4 P 168 22 Nissan X-trail 2.0 D 149 23 Honda CRV 2.4 P 151 24 SITUATION ANALYSIS: SWOT ANALYSIS: • Strengths: Brand Image; Quality; Captive finance solution; X1relatively affordable BMW; First crossover SUV. • Weaknesses: Dealer network; Service warranty. • Opportunities: Increase in millionaires; Cashing on diesel variants. • Threats: Competitors- Mercedes, Audi, VW, Toyota, Honda, etc. OBJECTIVES: • To achieve 10% market share in SUV segment by end of 2011. • Make X1 customer’s desired...
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...BMW 7 Series Bayerische Motoren Werke (BMW) is a multiproduct manufacturing German organization. It is into, automobiles, motorcycles, financial services, rovers etc. It has a large market share in America. It is a global company with 28% of its market is in North America, 25% of its market is in Germany, 21% in rest of the Europe and its products are sold in Asian regions as well. Its flagship product is automobiles which constitutes 68% of its sales. The BMW 7 Series is a line of full-size luxury vehicles produced by the German automaker. Introduced in 1977, it is BMW's flagship car and is only available as a sedan or extended-length limousines. Just about every company is affected by factors that are external to their own workings. These factors includes governmental, societal, and environmental. I conducted a SWOT analysis of BMW and concluded the following statistics. Strengths -Their brand name is already a boost in their strength says it all in aspects when in the market. - BMW 7 Series includes the best highly educated and highly disciplined working labor force that serves as their strength in dwelling precision in manufacturing. And their overall sales have shown stability and marginalized control among other leading automobile manufacturer in the world. Therefore strategic objective has been clearly defined. And that is to be a leader in premium products in automobile. Weaknesses – Their pricing strategy may be the only weaknesses that they have been facing...
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...| Bavarian Motor Works (BMW) | Rasheeda PaigeDeVry UniversityProfessor Michael Mcgivern Introduction to International Business03/27/2016 | | Table of contents Name, history, and ownership pg. 2 Country or countries where the business operates pg. 2 Stock exchange identifier and listing pg. 3 Description of the products and services (4 P’s) pg. 3 & 4 SWOT analysis pg. 5 & 6 BMW Competitors pg. 6 Demographics of consumer’s pg. 7 Organization structure pg. 7 & 8 Entrance and exit strategies pg. 8 Government structure and economic indicators pg. 8&9 BMW stands for Bayerische Motoren Werke, an automobile manufacturing company that is based in the country of Germany. BMW is a publicly traded and multinational company in the automotive industry. BMW headquartered is located in Munich, Germany and is well known as one of the best luxury brands in the automotive market. BMW logo is a blue-and-white circle in alternating quarters is represented of an airplane propeller on a blue sky, which is the color of the Bavaria flag. Karl Friedrich Rapp is a German engineer who founded Rapp Motorenwerke in 1913, which was an airplane manufacturing company. After realizing the company was struggling, Rapp reconstructed the company as the Bayerische Motoren Werke GmbH, which was the first use of BMW as a corporate logo. Gustav Otto was the second aircraft engine maker who merged with BMW, a founder of Bayerische Flugzeugwerke AG...
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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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...com/journal/2012/11/strategic-analysis-pestel-porter-and-swot-of-bmw/ http://www.ukessays.com/essays/marketing/a-porters-five-forces-analysis-of-bmw-marketing-essay.php http://porters-5-forces.blogspot.com/2011/11/porters-5-forces-in-automobile-industry.html https://sites.google.com/site/audibmwsarreport/home/porters-five-forces It's a college level management/marketing class question. Here you go: Threat of New Entrants - Very Low In order to enter the automotive market a huge amount of capital is required. In addition, an entering firm would need to have a tremendous amount of tacit and explicit knowledge to design and manufacture products. Threat of Substitutes - Medium Available substitutes include public transportation such as buses, trains, boats, and aircraft. In addition, consumers can use other conventional means of transportation such as bicycling or walking. Power of Suppliers - Medium Some suppliers are smaller and as such do not have that much power over 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,...
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