Strategic realignment of the BMW Group
announced
At the end of September 2007, the BMW Group
took on a new strategic direction. Up to the year
2020, the BMW Group intends to strengthen its
position within the global premium automobile market
by increasing volume of sales to more than two
million units per annum. The mission statement is
clearly defined: the BMW Group is the world’s leading
provider of premium products and premium
services for individual mobility. This means that in
addition to striving for organic growth in the core
line of business, the BMW Group will also engage in
new and profitable areas of activity throughout the
automotive life-cycle and all the way along the valueadded
chain. At the same time, the BMW Group
will invest substantially in future technologies, new
vehicle concepts and pioneering drive systems.
The new strategy, which has been given the name
Number ONE, is aimed at profitability and increasing
value over the long term. In order to achieve these
objectives, two new areas of responsibility have been
created within the Board of Management for the
“Corporate and Brand Development” and “Purchasing
and Supplier Network” divisions.
BMW Group remains best-selling premium
manufacturer
The BMW Group registered new sales volume records
in 2007 for all three brands. In total, 1,500,678 BMW,
MINI and Rolls-Royce brand cars were sold during
2007, an increase of 9.2 % compared to the previous
year.
The number of BMW brand cars sold rose by
7.7 % to 1,276,793 units. The MINI achieved a particularly
encouraging increase. This brand recorded
an 18.5 % rise, with 222,875 units handed over to
customers. The Rolls-Royce brand also reported
strong volume growth (+ 25.5 %) in 2007. With
1,010 units sold, it was able to surpass the 1,000
mark for the first time.
Sales volume increases on nearly all markets
The car sales volume increase recorded by the BMW
Group in 2007 was spread over practically all markets.
Particularly high growth rates were achieved in
the emerging markets of South America and Asia,
notably China.
In North America, retail sales increased by 7.9 %
to 363,966 units. In total, 336,225 vehicles were sold
in the USA, the BMW Group’s largest single market,
7.1 % more than in the previous year.
In Europe, the number of cars sold in 2007 increased
by 10.0 % to 898,339 units. Whereas the
German market as a whole contracted by 9 %, the
number of cars delivered by the BMW Group fell by
only 1.5 % to 280,938 units. The BMW Group sold
173,818 units in the United Kingdom, up 12.8 %
compared to the previous year. In Italy, the 100,000
mark was surpassed for the first time. The sales
volume there rose by 10.9 % with 106,992 units
The Automotive, or electric car industry particularly, comprises all those companies and activities involved in the manufacture of electric motor vehicles (EV), including most components, such as engines, bodies and rechargeable batteries or another energy storage device. The industry’s principal products are passenger automobiles. Despite the fact that the first electric cars were produced in 1880s , the advances in internal combustion engines, especially the electric starter, soon diminished the relative advantages of the electric car and became the dominant design in the market. Due to this the EV was almost a forgotten industry staying in the early stage of development, conforming to less than 1% of the automotive stock
In 2002, ELT at VWoA along with IT Organization supported a new business unit within VWoA, as a single point of governance for all IT issues. The reason Dr. Matulovic was moved from Germany to US for design, establish and then leading the new Organization.
The Successful Merge of Renault Corporation and Nissan Motors In 1999, RENAULT, a French midsize automaker company decided to create an alliance with Japan's NISSAN Motors. This operation has transformed the company into a global player, inside the very competitive market of worldwide vehicular distribution. By taking over 36.8% of Nissan's capital, Renault decided to send Carlos Ghosn, as new manager from Nissan, in order for him to install a "Nissan Revival Plan" (NRP). Actually, this plan has been made in order for both corporations to restore profitability, and acquire and increase market shares in Japan.
Volkswagen of America’s decision to establish and cultivate its IT through the late 1990s came at a proper time. Not only were Volkswagen’s new products hitting the American market with promise to revive the company’s brands, but also consumers were coming to expect features like e-marketing and efficient product distribution.
Another important differentiation strategy that BMW has incorporated is the establishment of links between the customers and the company. Over the years, the company has created a servicing segment that ensures that contact between the company and the customer continues even after the initial vehicle purchase.
BMW- differentiation strategy, high price, breadth of product line is moderate, known for their cars being in the shop constantly and high maintenance bills.
Harley-Davidson Inc. founded in 1903 and produced most of its motorcycles to be sold to the US military during World War 1. In 1953, Harley-Davidson became the only US motorcycle manufacturer for the next 46 years (Harley Davidson Museum). In 1988, Mr. Richard Teerlink was appointed the Chief Operating Officer of Harley-Davidson Inc. until 1997 (Bloomberg). Mr. Teerlink started with Harley around 1981 as VP and CFO of Harley, which was when the company was trying to reshape its corporate culture. This was a time when the company was facing serious competition from Japanese motorcycle manufacturers like Honda, who were continuing to take up US market share since the 1960s. Harley-Davidson Inc. had to transform itself and break away from the
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.
General Motors Company is one of the largest automobile makers in the world, with its headquarters based in the United States. After a few years of financial troubles, on November 18, 2010, General motors company (GM) announced the start of a new chapter in its history; a chapter that envisioned the emergence of a solid financial foundation within the company. The solid financial future according to then GM home page would enable the company to produce great vehicles for their customers and build a bright future for employees, partners and shareholders (“General Motors,” n.d.).
The product mix includes price, which generates sales, is a significant aspect that any for profit organization faces. Determining a price which depicts value, profitability, and is fair to consumers, is a crucial aspect of the marketing strategy. Price is the only element in the marketing mix that produces revenue; all other elements represent costs. Price is also one of the most flexible marketing mix elements (Armstrong & Kotler, 2015).
Like other organisations around the world there are ups and downs in the organisation that will either bring about strategic accomplishment or strategic failure, what is strategic failure? This is when an organisation’s process of defining strategy, or direction on making decisions on the allocating of resources to pursue the strategy fails. Hence in this piece of work we are going to look at the extent of failure of marriage between Daimler-Benz and Chrysler the result of strategic misconception, mismanagement or badluck and also look at what light does the apparent success of the marriage of necessity between Renault and Nissan shed on this strategic failure. Moreover firstly looking at the potential strategic failures that an organisation can face are the difference in corporate culture, mismanagement or ownership structure and legal environment may pose significant challenges in an international business.
Problem: Mr. Nakamura must decide on what action plans to pursue for the rest of the year (i.e., the "Value Creation 21" and the 5 emergency measures)
Toyota is one of the leading Japanese automobile manufacturing organizations in today’s era. In order to maintain their worldwide leadership they are able to maintain their specific forms of manufacturing system. Toyota is technology-based, comprehensive production management system with the primary goals of increasing productivity and reducing costs (Monden 1983).According to this Toyota is focused on providing the best within the budget. Among many of the development process I think simultaneous engineering is the vital one that Toyota follows. Toyota had been integrating simultaneous engineering for several years. Toyota plans, most machine, new or old, are equipped with such de- vices as well as various safety devices, fixed-position stopping, the full-work sys- tem, and baka-yoke fool proofing systems to prevent defective products. In this way, human intelligence, or human touch, is given to the machines.” (Ohno 1988, pp. 4-6). Production system of Toyota is the basis for much of the “Lean Production” movement and has dominated manufacturing trend for many years. Toyota’s performance is based on tools and quality improvement methods .Tools and techniques are one part while quality control, total quality control, business management techniques are another part to make Toyota better than the competitors. Manufacturing and production engineers use computer technology from early beginning for concept development and designing of their product which is less than 12 months or even less for derivative vehicle. Hence, the product development process of Toyota is more likely similar to that of Black and Decker which use engineering, industrial design, model making and prototyping, testing and computer ...
There are diverse benefits for dividing the line. One main reason was employee motivation. At Toyota, every employee not only has the capability to stop the line, but must do so if there is a difficulty he cannot resolve within one cycle time. However, in a long line, this means causing inconvenience to many other employees, not all of whom the employee has a common relation with. Hence, there is a feeling of fault due to disrupt other people’s task, and hence a hesitation to end the line.
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...