The Competitive Strategy Of BMW

1366 Words3 Pages
bulb-icon

Recommended: Bmw history 1899

Task 3.) BMW—Resource Base
Introduction

BMW is a well-established company that has operated in the automobile industry for almost 100 years. Over this time period the company had to face many challenges, however it managed to become one of the most successful and well-known companies in the world. (BMW) This analysis will examine BMW’s strategic resource base, how they are and should be managed and whether the competitive advantage of the company is sustainable. Further the paper will elaborate on if and how BMW is satisfying customer needs. Also threats regarding the competitive advantage of the company will be identified and examined.
Strategic Resources

BMW has been using a product differentiation strategy, which resulted in the generation
BMW has always been among the innovators in the industry. For instance the Bavarian carmaker was a pioneer of turbocharging (Meiners, 2015) and more recently the company is competing to bring the first steer-less car to the market (Gibbs, 2015). The “BMW Efficient Dynamics” strategy symbolizes this strong R&D and innovation emphasis of the company. BMW’s vision for this strategy is: “Sheer driving pleasure through maximum performance and minimal fuel consumption.“ The combination of efficiency and minimal fuel consumption has been quite successful which can be seen in the i series. Another difference between BMW and many of its competitors is the fact that the company tries to improve already existing products, whereas other car manufacturers usually leave their products unchanged. The R&D department of BMW therefore is not only concerned with creating new and innovative products and solutions, but also works on improving already existing and established cars. (BMW, 2015) According to a ranking by The Boston Consulting Group (BCG) BMW is the third most innovative company in the automobile industry and 18th overall. (BCG Perspectives,

Show More
Related

  • Car Technology of European and American Cars

    1183 Words  | 3 Pages

    The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.

    Read More

  • Competencies, Culture and Resource Analysis of Tesco

    2361 Words  | 5 Pages

    This is the second part of the strategic assignment. In this report the competecies, culture and resource analysis of Tesco is presented. Furthermore in this report SWOT analysis of Tesco is presented and then two strategic options are suggested to Tesco. The strategic options suggested are then evaluated through the SAF model.

    Read More

  • Harvard Case: Launching The Bmw Z3 Roadster

    1183 Words  | 3 Pages

    3 reviewed relevant marketing plans from BMW. We needed to understand the “4 C’s”: their

    Read More

  • BMW Case Study - Globalization of Manufacturing Operations

    1755 Words  | 4 Pages

    To study the BMW case, the background information and role of new plant at Spartanburg will be described at the beginning. Secondly, the 3 alternatives options will be analyzed and compared accordingly to determine a proper conclusion. Finally, the recommendation will be presented with various considerations.

    Read More

  • Delta Airlines Executive Summary

    587 Words  | 2 Pages

    The strategic recommendations provided will improve and enable the business to cope with the competitors, while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the business. In the case study, it was discovered that there were sources of opportunities in which the company would invest.

    Read More

  • Tesla Case Analysis

    847 Words  | 2 Pages

    In the recent past, Tesla has been noted as a great competitor in the automotive industry. This is attributed to its three huge competitive advantages. Generally, the advantage lies in its ability to bring about innovative disruption in the industry. This include; a strong battery supply chain that is sustainable in itself, a supercharger network celebrated by the customers and a software system several leagues ahead of its competitors (Zach, 2015).

    Read More

  • BMW

    1885 Words  | 4 Pages

    BMW has captured the attention of automobile drivers from all around the world with their “Ultimate Driving Machine.” The BMW Company was originally established in Germany and has extended nationally reaching over 12 countries. With Germany and the United States being the top two target countries, BMW has established their products as a combination of luxury, safety, and comfort with product lines to suit all styles of living. Revenues have been increasing each year since before 1996 with profits coming from product line of automobiles and motorcycles. In 2001, BMW came out with a new product group, the Mini. The Mini also contributed to the revenue increase in 2001. BMW has current developments in their sports cars, the Z8. BMW has created a trustworthy name for the automobiles they produce and has all the potential to continue their success in the future.

    Read More

  • A Strategic Analysis of Toyota Motor Corporation

    2481 Words  | 5 Pages

    Strategic management Toyota case study. 2013. Strategic management Toyota case study. [ONLINE] Available at: http://www.slideshare.net/ArioArdianto/strategic-management-toyota-case-study-27410014. [Accessed 15 December 2013].

    Read More

  • CRM Implementation at Audi

    2380 Words  | 5 Pages

    In early 2000’s when global car markets, particularly luxury car markets were getting more and more competitive and consolidated, and product innovation was increasingly becoming imperative for all leading luxury car makers, Audi took strategic decision of making a Premium customer experience with the support of CRM its core competency with the long-term commitment to make the car buyer lifecycle and experience as hassle-free and personalized as possible. The case is mainly narrates the CRM progress of Audi till 2004 and mainly focuses on Italy operations and steps taken in that region.

    Read More

  • Differentiation Strategies Used by BMW

    556 Words  | 2 Pages

    Another strategy used by BMW to differentiate itself from other automakers in the market is the proactive usage of technology and innovativeness in the development of products. From the early 1990’s, BMW has been on the forefront of incorporating technology in its designs in line with the technological advances of the modern world. This has led to the creation of inventive products. The uniqueness of these auto products put BMW in a position of advantage. The development of the hydrogen car as early as 2000 was an indicator of the company’s innovative strategy. In addition, the company also presents itself as environment friendly creating a whole range of vehicles in this category. This is a differentiation strategy meant to boost the company’s image and reputation amongst customers. In addition, this gives the environment conscious customers a variety of products to choose from giving BMW an upper hand in the industry.

    Read More

  • Case Analysis Of BMW

    1236 Words  | 3 Pages

    BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.

    Read More

  • Market Analysis: Four Different Types Of Market Structure

    1080 Words  | 3 Pages

    AutoEdge is facing crisis since millions of its automobiles has had to be recalled due to product quality issues. Many things should be considered in order to implement a proactive response to rectify the situation. As the research analysis, I have been tasked will helping to rebuild AutoEdge’s reputation as well as to reduce and control operating costs. When making any decision on implementing change within the organization market analysis must look at the market structure of the organization. Market structure is made up of the relationship that exists between buyers, sellers, competition, product differentiation, and ease of entry into and exit from the market. The article “Review of Market Structure” (n.d.) defines market structure as the “microeconomic characteristics of different markets” and include such elements as competition level, high versus low entry barriers, and scale (Review of Market Structure, n.d.) To make the decision the decision to relocate, AutoEdge must analysis and evaluate of market structure. This report will discuss the four different types of market structures: monopoly, oligopoly, monopolistic competition, and pure competition. Additionally, it will outline the type of market structure AutoEdge fits into, how that market structure impacts the level of competition, elasticity of demand, price, and position in the industry.

    Read More

  • Saturn Case Analysis

    1538 Words  | 4 Pages

    BMW- differentiation strategy, high price, breadth of product line is moderate, known for their cars being in the shop constantly and high maintenance bills.

    Read More

  • Mercedes Benz

    3043 Words  | 7 Pages

    The global company Mercedes-Benz is considered one of the most successful and well-known automotive companies worldwide. Since 1886, the company’s founders Gottlieb Daimler and Carl Benz made history with the invention of the automobile, including the Daimler Group, which is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles globally (Daimler, 2013). Their main focus is innovation, safety, technology, style, brand image, expansion, and superior automobiles by offering the best of the best to consumers worldwide. The brand’s philosophy is to continuously create radically new products to advance the cause of human mobility. It is also the number one luxury brand in the United States and Germany while continuously expanding in China and Russia as well (Interbrand, 2013). Mercedes-Benz has a great selection on divisions such as cars, trucks, vans, buses, and financial services offered to any consumer or business. Their global reach has increased tremendously by including production facilities in 17 countries on five continents and having 93 locations worldwide. As a pioneer of automotive engineering, their strategy is to continue the same pioneer role with the ongoing development of mobility, especially in the areas of safety and sustainability (Daimler, 2013). It is very essential for the company to focus on consumers’ needs and their highly well known brand in a competitive global economy. That is why the company Mercedes-Benz releases a brand new model every year to stay on top of its competitors by improving previous models. Some strategies practiced are global marketing, global product development, global product pricing, global advertising, global distribution, an...

    Read More

  • Market Segmentation, Positioning and targeting for BMW

    1338 Words  | 3 Pages

    Market Segmentation, Positioning and targeting for BMW 1.1 Introduction This report aims to examine the market segmentation, positioning and targeting of BMW (automobile company). BMW will be examined giving information about the company and where it is now and any recommendations that we feel are appropriate. 1.2 BMW Company Profile BMW was formed in 1917, from the merger of two small aero engine makers. Their famous blue and white symbol stems from the colours of the Bavarian Luftwaffe and is said to resemble the view of the one of their plane through a propeller. BMW is renowned for its sporty, sophisticated & luxury image which has been built up since the 1970's with many motor sport victories ranging from Touring Car to Formula 1.

    Read More

More about The Competitive Strategy Of BMW

Open Document