Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Bmw case study
BMW Group Business Strategy
Competitive advantage of bmw
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Bmw case study
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...
... middle of paper ...
....
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
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
The corvette was first introduced in January 1953. To experiment with the car, they only made 300 cars, which were all made by hand and powered by a 235-cubic-inch 6-cylinder engine. The corvette was designed to show the world that General Motors could make a sports car that was a stylish two seater. All 1953 corvettes were polo white with red interiors. The engine of the car generated 150 horsepower and had a 2-speed power glide automatic transmission. Researchers have found that the first corvette has been known to go over 150 miles per hour.
And we will purchase capacities when plant utilisation above 90%. This will expand the business size and have a positive impact on economies of scale. Composed with High End and Size products transfer into Traditional and Low End, we have multiproduct in targeted segments. “Higher firm-level ability raises a firm 's productivity across all products, which induces a positive correlation to a firm’s intensive and extensive margin” (Bernard, Redding and Schott 2006). This means with an effective business strategy and management, businesses can boost sales of all products within the segment. With a larger product profile for Traditional and Low End, it works to generate larger market shares. Refer to Graph 4 and 5, Digby sold twice units of products than its core competitor-Baldwin by having Daze and Dixie in its Traditional segment, which drives its segment market share to double Baldwin’s. The boost in sales and market share prove the correct implication of the
...system. Surely, it will take time for setting up a new plant and making production working smoothly with the quality assurance. How to shorten the learning curve for these works would be the first priority for BMW to think of.
Engage with lower demographic customers for expanding opportunities by modifying prices to reasonable fair value
For over 100 years there has been a car brand that leaves the impression of quality, reliability, and luxury. This brand is Rolls-Royce. The combination of Fred Royce and Charles Rolls created the brand in the early 1900’s. Rolls Royce is targeted at a particular audience. Their branding however is still impacting on all audiences; just certain people can afford it. Rolls Royce is idolized in the eyes of the public, from rap videos to mega millionaires. When you can afford a Rolls Royce you have made it big in societies eyes. Why is this so important in branding? It creates a strategic plan for them to follow. The strong brand image of Rolls Royce has evolved to have memorable, meaningful, likeable, transferable, adaptable, and protectable qualities. Rolls Royce gets many benefits from using these qualities in their branding. They have had many creations of advertisements through their branding ideology.
Rivalry among established firms is fierce. There are several factors that illustrate this: established market players (6.1). The product is highly standardized and the switching costs of the customers are low. Players are aggressive (6.2)
Stavros P. K, Markos H. Tsogas & Charles B, (2011) "Positioning strategies in business markets", Emerald 15, (2000)
A key part of an organizational strategy is to identify market opportunities by finding a niche or a gap in the marketplace that they can pursue to take their company ahead of all their competitors. An organiz...
This video provides an overview of product diversification. It explains that there are two types of diversification, which are related diversification and unrelated diversification. In addition, the video informs that diversification often involves merger and acquisition activities. Furthermore, it stresses the importance of keeping diversifications balanced, as in some instances, companies that do not take advantage of diversification, can miss out on some benefits, and/or could experience negative effects. However, on the other hand, the opposite could also occur, because some companies that over-diversify, extend themselves too far and can experience detrimental and disadvantageous effects as well. The key is staying
BMW- differentiation strategy, high price, breadth of product line is moderate, known for their cars being in the shop constantly and high maintenance bills.
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.
Marketing should be a long-term investment in your business, and not just something that is switched on and off as required.
Everything now a day is marketed, from the water we drink, the food we eat and the clothes we wear. Marketing not only establishes brand recognitio...