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Case Study Report

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Submitted By jameswade
Words 8399
Pages 34
Strategic Management 313

Unit Index Number 3522

Semester 1, 2006

BMW Automobiles

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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 analysis of the external environment indicates an attractive but challenging general environment. The industry environment shows low threat of new entrants, low bargaining power of suppliers, high bargaining power of buyers, moderate threat of substitute products and intense rivalry among competitors. In order to get a better understanding

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