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Strategic Management

BMW

The Ultimate Driving Experience

INTRODUCTION
Bavarian Motor Works
BMW logo : An aircraft propeller to signify the white blades cutting through a blue sky
Founded in Munich, 1917
Acquisition Of Rover Group in 1994

Acquisition of Rolls-Royce in 2003

One of thee leading luxury car manufacturers in the world

The BMW Group is one of the most successful manufacturers of automobiles and
motorcycles in the world with its BMW, MINI, Husqvarna Motorcycles and RollsRoyce brands.

As a global company, the BMW Group operates 25 production and assembly facilities
2
in 14 countries and has a global sales network in more than 140 countries

HISTORY

Decade

Key dates

1910a

1916 :

The company was founded as an aero-engine manufacturer in Munich

1917:

The Rapp Motor Company was renamed BMW

1923

BMW first motorcycle, BMW R32 was produced

1928

BMW first car, the Dixi, was produced.

1951

Produced its first post-war car, the 501.

1952

- Come close to bankruptcy due to the declining motorcycle market


in the afterneath od the World War
- Herbert Quandt, a powerful industrial financier acquired 47% share
of BMW

1920s
1950s

1980s

BMW position in the luxury/performance segment had been firmly


establish

1990

BMW has 400 dealers in the US


3

Opportunities

Increasing
levels of
popularity of
electromobilit
y

Current economic instability and growing fuel


prices, large markets can welcome the new range
of BMW hybrids and hydrogen cars.
BMW has been working on developing the iBMW concept which includes fully electric cars
leading to emission reduction and cost efficient
cars

Green
vehicles and
new emission
regulations

With customers becoming more conscious about the


environmental protection, BMWs emphasis on
green vehicles will definitely create strong
position in the automotive industry in the future.
The firm produces most ecological vehicles which
comply with the new reduced vehicle emission
regulations.

Changing
customer
needs

Strategic
alliances with
other
automobile
companies

Unique selling proposition and continuous


brand building with the help of new
innovative technologies can help BMW to
cater to different target groups.

Increase its presence globally


Explore the markets of countries that
have limited themselves to particular
companies.
BMW can also increase its presence in
Chinese market may taken into account.

Improved
quality and
customer care

Continuous improvement of BMW can


continue to be a leader in quality and
customer care by always refining and
improving its policies and procedures.

Market
expansion

Entering new markets will help the


company to increase their targeted
revenue.
Remain on top of the revenue chain for
developing economies.

Increasing
product
portfolio

By increasing their product portfolio and


introducing new series in different
segments they can increase their sales as
there will be more choices for customers
under the same brand.

Changing
lifestyle &
customer
groups

With changing customer lifestyle and


more & more inclination towards
premium brands it is certain that this
segment is growing fast.

THREATS

Increasing
prices of raw
materials

Auto manufacturers are facing issues due


to rise in costs or raw materials leading to
lesser profits and higher input costs.

New
competition

With increasing competition from


competitors like Audi, Mercedes Benz,
Toyota, etc. BMW tends to compete more
on price rather than differentiation

Malfunctio
ns

Euro
exchange
rates

Defection at high-end quality


products will affect its brand image

Exchange rate fluctuation can be a


major threat for BMW
Euro appreciates against other
currencies because a huge part of it
profits come from other currencies

Decreasin
g fuel
prices

Due to increasing extraction of shale


gas, future fuel prices should drop
and make electric, hybrid and
hydrogen cars less attractive.
This creates huge losses for BMW
most ambitious projects, hydrogen
fueled and electric cars.

Price
Factor

Many people are becoming price


conscious and with the younger
generation on an electronic
purchasing spree, there is threat that
in the near future luxury cars will
stop receiving as much attention.

Failed to
obtain spare
parts

Many BMW customers around the


world were complaining about not
being able to obtain spare parts for
their BMW. (August 2013)

External Factors Evaluation Matrix


Key External Factors

Weight

Rating

Weighted Score

Opportunities
1.

Increasing levels of popularity of


electromobility

0.08

0.24

2.

Green vehicles and new


emission regulations

0.08

0.24

3.

Changing customer needs

0.11

0.44

4.

Strategic alliances with other


automobile companies

0.04

0.08

5.

Improved quality and customer


care

0.10

0.40

6.

Market expansion

0.05

0.10

7.

Increasing product portfolio

0.06

0.12

8.

Changing lifestyle & customer


groups

0.05

0.10

Subtotal

0.57

1.72

External Factors Evaluation Matrix


Key External Factors

Weight

Rating

Weighted Score

0.08

0.08

10. New competition

0.10

0.30

11. Malfunctions

0.04

0.08

12. Euro exchange rates

0.05

0.10

13. Decreasing fuel prices

0.03

0.03

14 Price Factor

0.09

0.18

15 Failed to obtain spare parts

0.04

0.08

Threats
9.

Increasing prices of raw materials

TOTAL

1.0

2.57

External position of BMW is good as the weighted score (2.57) is higher than
average score (2.50)

Five-Force Modal

LOW Threat of New Entrance


In-depth research is
needed

Big amount of capital is


required

sufficient knowledge
needed

highly skilled
technicians and
engineers required

Spend a lot of money on


marketing

Brand equity

design and manufacture


a product that has never
been offered

cost of repair is high if


there is any failure or
malfunction.

HIGH Threat of Substitutes

HIGH
threat of
substitute

LOW threat
of substitute

Low
switching
cost

No penalties of
changing
brands

Many
substitutes

Competitor in
same industry
(luxury car
industry)

Environme
nt issue

Awareness
about fuel
emissions

Prefer to use
public transport

Strong brand
image

Rather buy
something that
has a reputable
name behind it.

Brand
loyalty is
high

Competitor in
different
industry
Car with lower
price

HIGH Power of Suppliers


High quality material

Differentiation of material
Majority of suppliers
medium to large
businesses
Level of difficulty for a
new supplier to enter the
industry

Have set expectations of quality the materials need to


be for their vehicles
Not easy to switch between suppliers

unique inputs is required by different luxury car


company
If will be hard to find a substitute unique input

Have some power in determining product pricing,


delivery, and distribution.

Amount of capital would require to enter into the


industry
There are already many current suppliers in the
industry
Luxury car company will not easily to change a supplier

HIGH Power of Consumers


Many substitutes
HIGH
power of
consumer

Low switching cost


Switch to another brand is simple

Economic recession
Customer forced to buy less costly cars

Easily to get information


Customer easily compare same segment cars pricing, features

Brand image
LOW power
of consumer

Customer willing to pay more for luxury brand

Customer know the production of the product


Luxury car have high quality
Customer know the quality of car worth with the price

HIGH Competitive Rivalry


High barriers
of exit
High initial
investment when
entering the
industry

Low market
share
Not much new
market share
Must take market
share away from
other competitors
while most of the
competitor are in
same size

Technology
development
Increasing
competition and
demand over
hybrid cars
increase in the fuel
efficiency
environmental
friendly cars
Therefore a luxury
car company must
have in-depth
research to attract a
customer

Hard to achieve
market
leadership
Technology keep
changing
Competitors keep
innovate
Hard to recognize
as the top luxury
brand in
customers
perception.

Five-Force Model of BMW


Threat of New Entrance

Low

Threat of Substitutes

High

Power of Suppliers

High

Power of Consumers

High

Competitive Rivalry

High

Luxury car industry is not very


attractive.

BMWS COMPETITORS

Founded in the year of 1932, a subsidiary of Volkswagen AG


Headquartered in Ingolstadt, Bavaria Germany
Slogan Vorsprung durch Tecknik Advancement through technology
Won 24 hours of Le Mans for 5 consecutive years Championship Title
Fourth victory in the Excellence in Production Competition
Selling over 1 million premium cars in a year

Multimedia Interface (MMI)


Control all in car entertainment , satellite navigation, heating and ventilation and other controls with a screen
Continuously recessing processes and structure
To improve efficiency and realize cost cutting method
Implementing wide-ranging measure to permanently optimize material costs
Comprehensive Pricing Structure
Price are offered in the range of each bodystyle with a tiered pricing scheme to capture each spending level
customers
Superbowl Commercial Advertising
To position itself touting its technology, strong engineering, speed and bravely
Focus on hardworking and well-qualified workforce
Providing opportunities to arrange working hours, offering performance-related pay, profit sharing scheme and
regular internal workforce survey to measure workforce satisfaction

Established in year 1926,


division of Draimler AG
Headquarter in Stuttgart,
Baden-Wurttemberg,
Germany

Own 18 classes of cars

Slogan
The Best Or Nothing

Three times Winner for


the World Car Award

Active in 3 forms of
motorcar racing:
Formula Three, DTM
& Formula One

Relaxed atmosphere
R&D centre in Silicon Valley
flexible working time
create visionary concepts and
production-ready products for crossmedia networked vehicles
Expansion of the product network
continues
plant aligning for compact car
production, facility of preparation for
the plants role as center of competence
for the new C-class
China - to expand the local production
to build a new engine plant
Sales and marketing initiative launched
Best Customer Experience sales and
marketing initiative
Reconfiguring the sales to align it with
the changing preference of customers
First premium manufacturer to sell new
cars on the internet
Restructure the organization along the
divisional lines

Mercedes-BenzPRE-SAFE introduced
Comprehensive system of safety
features activated once unavoidable
collision is detected
Newly launched PRE-SAFE Sound Harnessing the stapedius muscle reflex
in the ear

Year of foundation : 1989


A division of Toyota
(Japanese Automaker)
Headquartered in Nagoya,
Japan
Mission The relentless
Pursuit of Perfection
fourth best selling luxury
brand in the world, trailing
only BMW, Audi and
Mercedes-Benz

Maintain car price when other competitor producing cheaper entry level
To prevent low unit price in diluting the brand value
Market Position
Avoid flooding the market with many car models and try to dominate the niche
market
Dealership & dealership service
Strategically located on prime real-estate
Vehicle Delivery Specialist (answer the question after delivery)
Vehicle Technology Specialist (expert guidance on the dealership or via camera-enabled apps)
OWNERS APP
Providing Lexus owners convenient access to vehicle service history, how-to videos and
information about nearby owner benefit

Competitive Profile Matrix of BMW

Critical success
factors

AUDI

Weight

Rating

Advertising

0.05

Market shares

0.05

Customer Service

Score

MERCEDESBENZ

LEXUS

BMW

Rating

Score

Rating

Score

Rating

0.10

0.20

0.05

0.15

0.15

0.10

0.05

0.20

0.25

0.25

0.50

1.00

0.75

Customers loyalty

0.20

0.40

0.20

0.80

0.60

Price competitiveness

0.20

0.40

0.60

0.20

0.80

Global Expansion

0.15

0.45

0.60

0.15

0.30

Management

0.10

0.10

0.30

0.20

0.40

Total

1.00

1.85

2.50

2.45

Score

3.20

BMW is the strongest automotive company compares to its competitors. The main competitor for BMW
is Mercedes-Benz as it has the second highest value which is 2.50

Strengths

BMW was listed as the most reputable business in the


world by the Forbes magazine (2012)
The strong brand reputation of BMW is the result of
Brand effective marketing strategies.

Strong
Reputation

Environmental
Friendly
Technology

BMW is known for its innovation and technological


advancements.
The company develops environment friendly cars, with its
engineers working on developing new types of fuels, such
as hydrogen.
In 2013, BMW-AG announced launch of its first fully
electric car range, starting with BMW i3 in 2014.

Quality cars require premium materials and skilled


workforce.
BMW has set up assembly plants mainly in USA
and Germany, which have the most skilled vehicle
Highly Skilled assemblers.

Workforce

Corporate
Social
Responsibility
(CSR)

The company invests large sums in employee health


management, balanced work life programs, zero
waste at its plants and suppliers sustainability.
It is committed to employee-community well-being
and environment protection programs.

Quality
Products

Competitive
Customer
Service

BMW is a world renowned brand for its engineering


potentials, skilled workforce and quality products.
BMW aims at technological advancements, green
vehicles and new innovative quality products

BMW works efficiently on long-term post sales


customer service practices catering to the needs,
problems and any issues faced by its customers.
Customers look for superior after-sale services,
which BMW tries to fulfill

BMW is one of the world leaders in motorcycle


production, aircraft engines and also marine
engines.
BMW has a long history of providing the best
Engineering engineering possible in the market..

History

BMW identified the need for improved quality and


customer care.
now offers a four-year warranty, including
Continuous BMW
maintenance and service, in the price of the car,
Improvemen cutting out complaints

Weaknesses

High cost
structure

High prices
perception

For production of high-end, luxury products; hiring


skilled workforce and new technological
components leads to high costs for the business.

Compared to its competitors, like Audi; BMWs


luxury cars requires higher cost structure.
BMW follows a premium pricing strategy leading to
high price in comparison with other cars.

Weak brand
portfolio (only
three brands)

BMW manufactures and sells only 3 brands: BMW,


MINI and Rolls-Royce.
The lack of differentiation in brand portfolio may
have negative impact on long-term growth of the
company.

Lack of strategic partnerships with other


organizations within and outside of automobile
industry
of strategic Lack of operational cost efficiency with direct
negative effects on profitability.

Lack
partnerships

Younger generation
less brand conscious

The younger generation is more likely to spend the money


on electronic appliances then saving it for a premium car.

INTERNAL FACTOR EVALUATION MATRIX FOR


BMW
Key Internal Factors

Weight

Rating

Weighted
Score

Strengths
1.

Strong Brand Reputation

0.12

0.48

2.

Environmental Friendly
Technology

0.10

0.40

3.

Highly Skilled Workforce

0.09

0.27

4.

Corporate Social
Responsibility (CSR)

0.08

0.24

5.

Quality Products

0.07

0.28

6.

Competitive Customer
Service

0.09

0.27

7.

Engineering History

0.04

0.12

8.

Continuous Improvement

0.10

0.40

Subtotal

0.69

2.46

INTERNAL FACTOR EVALUATION MATRIX FOR


BMW
Key Internal Factors

Weight

Rating

Weighted Score

High cost structure

0.08

0.08

10. High prices perception

0.10

0.10

11. Weak brand portfolio (only three


brands)

0.05

0.10

12

0.06

0.06

0.02

0.04

Weaknesses
9.

Lack of strategic partnerships

13. Younger generation less brand


conscious
TOTAL

1.0

2.84

Internal position of BMW is good as the weighted score (2.84) is higher than
average score (2.50)

Liquidity ratio
( Current ratio )

Profitability ratio
( Net profit margin )

FINANCIAL
CONDITION

Financial Leverage
ratio
( Debt-to-total-assets
ratio )

Growth ratio
( Sales growth rate )

LIQUIDITY RATIO
(CURRENT RATIO)
1.08
1.08

1.04

1.04

1.02

2009

2010

2011

2012

From 2009 2011, the current ratio decreases gradually


In year 2013, BMW experienced the lowest current ratio
Current Liabilities increase, Current Assets decrease

2013

LIQUIDITY RATIO
(CURRENT RATIO)
Year/Company

2009

2010

2011

2012

2013

BMW GROUP

1.082

1.075

1.038

1.044

1.021

VOLKSWAGE
N GROUP

1.119

1.049

0.971

1.071

1.030

DAIMLER AG

1.142

1.024

1.114

1.149

1.192

TOYOTA

1.067

1.223

1.096

1.046

1.068

Industry
Average

1.103

1.093

1.055

1.078

1.078

BMW < INDUSTRY AVERAGE


THROUGOUT 5 YEARS, DAIMLER AG HAS THE HIGHEST CURRENT RATIO
AMONG THE COMPETITORS

PROFITABILITY RATIO
(NET PROFIT MARGIN)
7.09

6.62

5.34

0.4

2009

2010

2011

2012

2013

In 2009, BMW has the lowest NPM


From 2009 2011, BMW experienced increased net profit margin
From 2012 2013, NPM slightly increased

6.97

PROFITABILITY RATIO
(NET PROFIT MARGIN)
Year/Company

2009

2010

2011

2012

2013

BMW GROUP

0.403

5.336

7.092

6.617

6.972

VOLKSWAGE
N GROUP

0.913

5.387

9.671

11.269

4.602

DAIMLER AG

-3.345

4.601

5.319

5.624

5.799

TOYOTA

-2.128

1.105

2.149

1.526

4.361

INDUSTRY
AVERAGE

-1.039

4.107

6.058

6.259

5.434

BMW > INDUSTRY AVERAGE


Within 5 tears, Volkswagen Group is the highest among competitors

FINANCIAL LEVERAGE RATIO


(DEBT TO TOTAL ASSET RATIO)
59.08

54.78
53.07
51.37

2009

2010

2011

2012

Since 2009, debt to total asset ratio having a falling trend


Growth of the company is getting healthier
More resources in R&D

2013

50.81

FINANCIAL LEVERAGE RATIO


(DEBT TO TOTAL ASSET RATIO)
Year/Company

2009

2010

2011

2012

2013

BMW GROUP

59.078

54.776

53.065

51.365

50.806

VOLKSWAGE
N GROUP

43.797

38.623

36.857

38.015

37.463

DAIMLER AG

40.039

47.258

41.967

46.762

46.130

TOYOTA

47.257

49.388

41.589

39.119

39.827

INDUSTRY
AVERAGE

47.543

47.511

43.370

43.815

43.557

BMW > INDUSTRY AVERAGE


Highest among the competitors

GROWTH RATE
(SALES GROWTH RATE)
19.33
13.8

11.66

-4.73

-1.03

2009

2010

2011

Negative growth in 2009


Positive growth from 2010 2012, decline gradually
Negative growth again in 2013

2012

2013

GROWTH RATE
(SALES GROWTH RATE)
Year/Company

2009

2010

2011

2012

2013

BMW GROUP

-4.730

19.329

13.797

11.664

-1.027

VOLKSWAGE
N GROUP

-7.575

20.619

25.586

20.924

2.248

DAIMLER AG

-17.679

23.867

8.980

7.281

3.224

TOYOTA

-21.909

-7.689

0.225

-2.159

18.729

INDUSTRY
AVERAGE

-12.973

14.032

12.147

9.428

5.794

BMW > INDUSTRY AVERAGE


Volkswagen Group performs well among the competitors within this 5 years

OBJECTIVE
46 years old

provider
g
n
i
d
a
e
l
worlds
e
h
t
es for
c
s
i
i
v
r
p
e
u
s
o
r
m
G
iu
The BMW products and prem
m
of premiu
ility.
b
o
m
l
a
u
individ

Mission

Interested
in sport

Up to the year2020, the BMW Group intends to


strengthen itsposition within the global
premium automobile marketby increasing
volume of sales to more than twomillion units
per annum.

Income
$150,000

Leader,
Hardworking

Targeted
Customers

High Brand
Loyalty

2/3 Male

Married, no
kids
Well
Educated

51

R
T
S

E
T
A

S
E
I
G
52

The business strategy of BMW Group is based on


having a
POWERFUL BRAND IMAGE.

This strategy forms the foundation of the success of the BMW Group.

BMW Group believes in maintain core values as technology, innovation,


performance, quality, reliability, exclusivity and customer satisfaction.

The company slogans of BMW Group

United Stated
"The Ultimate
Driving Machine"

Worldwide
"Sheer Driving
Pleasure

Canada
The Ultimate
Driving Experience

53

Sponsorships

Infootball, BMW sponsorsEintracht Frankfurt.

It was an official sponsor of theLondon 2012 Olympics providing 4000


BMWs and Minis.

Made a six-year sponsorship deal with theUnited States Olympic


Committee (USOC) in July 2010.

Sponsored various European golf events such as the PGA


Championship, the BMW Italian Open and The BMW International
Open

54

Environment friendly vehicles

Member of :

U.S. Environmental Protection Agency 's (EPA) National Environmental Achievement Track, which recognizes
companies for their environmental stewardship and performance.

World Business Council for Sustainable Development

Activities :

In 2001, the BMW Group committed itself to the United Nations Environment Programme, the UN Global
Compact and the Cleaner Production Declaration.

Achievement :

In 2012, BMW was named the world's most sustainable automotive company for the eighth consecutive year by
the Dow Jones Sustainability Indexes.

BMW is industry leader in the Carbon Disclosure Project's Global 500 ranking

3rd place in Carbon Disclosure Leadership Index across all industries.

BMW is listed in the FTSE4GoodIndex.

BMW has taken measures to reduce the impact the company has on the environment. It is trying to
design less-polluting cars by making existing models more efficient, as well as developing
environmentally friendly fuels for future vehicles.

electric power

hybrid power (combustion engines and electric motors) hydrogen engines.

55

Online Marketing

Uses internet thru its main international website (www.bmw.com) and its
subsidiaries as parts of marketing strategy to conduct mass marketing worldwide

This has been advantageous to BMW since 2001 when it conducted RD and found
that 85% of its customers used the internet before purchasing its product.

Use website :
-

Provides information about corporation, products, service, and an online store.

Latest news on products and details to promote the brand and maintain its awareness

Offer various buying options for customers

Overcome locations barriers at minimum costs through online stores

Downloads for wallpapers, screen savers, widgets, and other brand promoting applications

Social networks Facebook (13,396,064 likes), Twitter(100k followers), Youtube,


potential reaching a great number of people at relatively low cost.

BMW multi-player online games : promote performance of its vehicles, create string
positive brand image, influence players who are potential buyers or ambasadors
56

Competitive
Competitive Advantage
Advantage

Competitive Scope
Scope
Competitive

Lower
Lower Cost
Cost

Broad
Broad Target
Target

Narrow
Narrow
Target
Target

Differentiation
Differentiation

Cost Leadership

Differentiation

Cost Focus

Differentiation
Focus
57

Sustainable Competitive Advantage Profile

58

What objectives and strategies


do you recommend for this firm?
Explain your reasoning.

How

does what you recommend


compare to what the firm plans

SWOT

Opportunity
O 2 Green vehicles and new
emission regulations
O 3 Changing customer needs
O 4 Strategic Alliances
O 5 Improved quality and
customer care
Threats
T 2 Intense Competition
T 3 Malfunctions
T 6 Price Factor

Strengths
S 1 Strong Brand Reputation
S 2 Environmental Friendly
Technology
S 3 High Skill Workforce
S 4 Corporate Social
Responsibility (CSR)
(S2, O2)
Focusing on Hybrid technologies
(S3, O3)
Product Diversification

Weaknesses
W 1 Lack of Strategic
alliances
W 2 High cost structure
W 3 High prices perception
W 4 Weak Product Portfolio

(S3, T3 & T7)


R & D to counter Malfunctions
and failure to obtain spare parts

(W4, T2 & T6)


Market Penetration (New
Product, New Market)

(W1, O4)
Expand and Find Strategic
alliances
(W3, O5)
Position as premium car
brands

Recommendation

Similarities/Differences

Existing Strategies

Hybrid technologies

Reduce Pollution

Environment friendly
vehicles

Product Diversification

Undifferentiated vs
Differentiated Focus

Differentiation Focus

Find Strategic alliances

Increase market share

Sponsorships

Position as premium car


brands

quality, reliability, exclusivity

POWERFUL BRAND
IMAGE.

R & D to meet new emission


standards (Europe)

Enter new Market.

R & D to counter
Malfunctions and failure to
obtain spare parts

Repair customer Loyalty vs


targeting new customer

Online Marketing

How could the firm


best implement
what you recommend?

New
wareho
use
faciliti
es
-To
lower
cost
Overcom
Why
e Spare
BMW
part
becaus
problem

e it is
Luxury
!
-premium

Car
-exclusive
experience
-inimitable
feeling

tand
Custo
mer
-Culture
and
preferenc
e
-innovate
car to
suit them

To be
The
World
Top
Luxur
y Car
Improve
Product
Maker
ion
Efficienc
y
- Cut
cost
-Reduce
environ

Raise
Green
Aware
ness
Advertisi
ng
Through
Increas
Social
Media
e

Produc
t Port
Folio

- Find
Strategy
Alliances
introduc
e more
brands

What implementation
problems do you envision?

Financial

problem

Need capital to start up new warehouse

Cost for research, survey

High storage costs

New

Emission Standard

Europe have new emission standard

Require Further R&D to meet them

Time

costly and time-consuming in the short-term

Development, survey, R&D

Product life cycle

Hard

to fulfill every customer due to different


demand.

Customer lifestyle and preference keep changing

Improper Alliances might ends up BMW acquiring more problems and could harm
their brand.

Harm BMW reputation

BMW may have to solve problem created by Alliances

Strong Rivalry of competing Firm

Volkswagen

Mercedes

Lexuz

How

could the firm avoid or solve those


problems?

Conduct

Well planning on cost allocation

Reduce cost in advertisement by using technologies

Hire well train researchers

Eliminate Non-value added activities

Utilize

social media

Save time in collecting opinions, survey, save cost

Collaborate

with the largest competitors in the countries (Strategy Alliances)

Only BMV and the competitor in the country (Eg Perodua)

To meet certain emission standards

Conduct complete analysis about Alliances

Choose carefully

Innovate
Eg:

products that reach customers satisfaction

Personal Customization Car

Special

innovative technologies

Understand

foreign government rules and


Emission regulations

before enter into market

Conduct analysis whether the market worth it (Cost Vs Profit)

Conclusion

BMW is a leading company in manufacturing world


Premium Car.

Because, BMW focus on their mission The BMW Group is


the worlds leading provider of premium products and
premium services for individual mobility This Mission
has differentiate BMW with other competitor and bring
success to BMW.

Due to unpredictable Customer demand and the constant


changes of consumer lifestyle, BMW need to carry intensive
analysis in order to increase their market share and continue
to be the Market leader.
71

1.

BMW Group Mission Statement - One Premium Success From Three Distinct Visions.
Retrieved
from
http://
retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/BM
W-Group-Mission-Statement.htm

2.

BMW Group
(2013).
Company
Portrait.
Strategy. Retrieved
from
http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/unternehmen/unternehmensprofil
/strategie/strategie.html

3.

Strategic Realignment Of The BMW Group :: Strategic Management. Retrieved from


http://
www.123helpme.com/strategic-realignment-of-the-bmw-group-view.asp?id=16748

4.

Analysis of BMW e-marketing strategies. (2013).


www.slideshare.net/KennedyMbwette/bmw-e-marketing

5.

Roop.
(2015).
SWOT
Analysis
of
BMW.
Retrieved
https://www.scribd.com/doc/240158470/SWOT-Analysis-of-BMW#scribd

6.

Ovidijus Jurevicius. (2013). SWOT analysis of BMW. Retrieved from


http://www.strategicmanagementinsight.com/swot-analyses/bmw-swot-analysis.html

7.

Marketing
91.
(2015).
BMW
SWOT
http://www.marketing91.com/swot-analysis-of-bmw/

Retrieved

analysis.

from

Retrieved

http://
from

72
from

9.

Mercedes-Benz. Retrieved from https://www.mercedes-benz.com/en/

10.

Mercedes, Audi gain on BMW in global luxury sales race. (2014,


August
15).
Retrieved
from
http://
www.autonews.com/article/20140815/COPY01/308159966/mercedes-aud
i-gain-on-bmw-in-global-luxury-sales-race

11.

Audi USA | This is Truth in Engineering. Retrieved from http://


www.audiusa.com

12.

TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. (n.d.).


Retrieved from http://www.toyota-global.com/

13.

As BMW, Audi and Mercedes-Benz Race for Luxury-Car Sales


Crown,
Profits
Get
Dented.
Retrieved
from
http://
www.wsj.com/articles/in-luxury-race-profits-get-dented-1426208841

14.

Using CRM as a Competitive Strategy. Retrieved from


http://www.piesync.com/blog/using-crm-as-a-competitive-strategy/
73

QUESTION ?

THANK YOU FOR YOUR ATTENTION


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