Case Study Of BMW

Introduction With businesses fast emerging and competition strict as ever, most businesses seek ways to expand internationally in order to ensure their position in the competitive market. Although globalization-the shift toward a more interdependent and integrated global economy- creates more opportunities for international business, some business attempt to expand blindly in a different country without considering issues such as culture clash, other businesses tackle the competition through strategic changes in order to accustom to the new culture. Bayerische Motoren Werke AG (BMW) is known as one of the most successful company founded in Germany in 1976. It is part of the “German Big Three” luxury automakers (Cato). Holding the dominant position in European market, BMW decided to move into China to seek global expansion. Competition and challenges facing BMW are fundamentally different from the ones in Europe due to different demands from customers; therefore, it is questionable whether BMW will still remain “the most successful premium manufacturer” in the car industry. In a short time, BMW has become a market leader in China. BMW’s success applies to different types of customers. BMW’s products not only cater customers’ desire, but

There is a drastic increase between 2001 and 2002 due to the participation of WTO. Comparing to other countries, China shows the most increase among all and this pattern is likely to continue due to a series of new policies of international trade. Chinese market has grown from a closed market before 1980 to a market with selected types of cars, mostly produced in China, and then to a market that brought some mainstreams passenger production. (Luo 12) ; however, the WTO creates a lot of competition between luxury brands as well. Different brands have to utilize different strategies in order to get adapted to rapidly changing