Competitive Strategy of BMW (Bayerische Motoren Werke)

Overview

The Bayerische Motoren Werke also commonly known as (BMW) is the world's most renowned automobile brand. The company is based in Germany with its headquarter in Munich, Germany. BMW manufactures automobiles, aircraft engines, motorcycles, and other premium products Rolls-Royce, BMW mini. The company has a total of 23 production facilities around the globe in 12 different countries with representation in more than 140 countries. The company is famous for its world class luxury cars offered to international customers. BMW is considered as the world's leading and most leading premium manufacturer. In the year 2007, the company reported a net profit of €3 billion, with more than 222,875 mini units, 1,276,000 BMW brand cars, and 1,010 Rolls-Royce cars. BMW AG, has employed more than 107,000 (2007) employees throughout the world (Fleischmann & Herbert, 457-523).

Despite the fact that the company lost the first position in the automobile sector which it held for many years, BMW remains among the top five companies on the DAX and (CTI) corporate trust index of German companies. The company is still ahead of its competitors Daimler and Volkswagen in terms of market share and customer satisfaction. BMW is following a local production strategy; BMW is highly committed towards its long term strategy of market penetration, while at the same time escaping high duties on imported foreign produced cars. Another production and sales strategy used by the company is the (CKD) process which is known as completely knocked down process in which different components and parts are imported from different local and international assemblers (Ferber, 56).

Question 1a:

Question 1b:

The slogan “sheer driving pleasure” defines the business mission of BMW, which pronounces a great experience of driving. So, BMW's long tradition as a manufacturer of premium cars is connected to the attributes sporty, high quality and reliability. This orientation can also be found for the BMW series, where Kermit the frog campaigns for “the principle fun”. The market introduction of the BMW series was headed “like no-one”. In line with the business mission of BMW, the series is connected to a long tradition as the successor of the BMW2002tii from 1971 (Geoffrion & Powers, 105-127).

Today, BMW obtains a very competitive position on the market. The company is ruled by the team who is able to raise the price level and gain more or less strong market position. At the very beginning the strengths included high potential to growth and profitability of the company, and professional management team, customer loyalty and excellent service. “In business terms, strategy of adhesion to BMW's core values had been vindicated by the bottom line with the 3-series saloons continuing to be especially in demand” (Lenciani, 95-109). BMW has a hard core of loyal supporters. It develops lines of services to satisfy the needs of wide audience, low-cost of the services.BMW has maintained high-speed growth through continuous optimization of is product mix and constant technological innovation. “BMW had traditionally taken great pride of the quality of its engineering, higher ...