BMW

BMW

Strengths

BMW is a well-known company with a high status branding that has a very high recognition factor. The company has been strengths in both research and development and design as well as in marketing. For example when it comes to marketing it was a BMW advertisement that was the first e-advertisement that made it to Campaigns 'Pick of the Week' (Doman). However, in a long-term purchase such

as these, there is a need for more substance than just marketing, otherwise the life of

the company would be relatively short due to the nature of the purchase. It is in these

longer-term systems and strategies that we can see many of the strengths of BMW, we

can consider these by starting with the market position of the company.

BMW as well as Mercedes' and a few other companies have managed too

successfully attain a market position where they have a focus on a narrow range of

exclusive cars. These can be seen as aimed at the market place that is not also sensitive

to price, and as such we must argue that the market positioning may be seen as a

strength as there will not be such a reaction if the economic conditions change. The

customers that are in the target group are happy to pay a premium price for what

they perceive as a premium product (Thompson).

This may not be so true of the subsidiary companies that have had different

problems, such as the ill-fated Rover group. However, the core product has remained

strong (Thompson). This may be seen as diversification, and some of the

diversification may also be seen as a strength, for example the purchase of Rolls Royce

where there is a similar strategy, however the range and target market are even more

focussed and exclusive.

The strategy of BMW is designed to be defensive against other car

manufactures, and as we will see when it comes to the section on threats this is a

defensive strategy that BMW have adopted after learning the need for defensive as

well as aggressive marketing and strategies. These strategies can be seen as follows;

 Customers may choose any color that the wish from the entire range, this is only matched by Rolls Royce and Aston Martin, other companies offer a choice of color but only wi...

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The position of BMW is relatively strong; they have made mistakes, but appear

to be learning form them. Their relatively small size can be seen as justified in such a

competitive market by their own market position. Therefore as long as the company

retains it focus and is not tempted into too great a level of diversification then it

should have a bright future.

Work Cited

European Car, (no author cited), (2001, May), Hydrogen-powered BMW 750hL,

European Car, v32 i5 p14

The Economist (UK), (no author cited), (2000, April 1), Milberg's mission. (Strategy of

BMW, The Economist (UK), p70 (2)

Lorenz Andrew, (2000, Dec 20), Rover and out. (BMW's sale of Rover, automobiles)

Autocar, v226 i12 p62 (4)

Mintzberg H Quinn J B, Ghoshal S (1998), The Strategy Process, London. Prentice Hall.

Thompson J (1998) Strategic Management; Awareness and Change, London, Thomson

Business Press

Wells Melanie, (2001, April 16), Giving an Old Brand New Mystique. Forbes, p198s02

Foundry Management & Technology, (no author cited), (2000, July), BMW, Ford Motor

Sign Definitive Agreement for Land Rover, Foundry Management & Technology, v128 i7 p8