BMW

Start-up Phase of BMW

Start-up Phase of BMW

Introduction

BMW is a German manufacturer of automobiles and motorcycles. It is headquartered in Munich, in the federal state of Bavaria in Germany. The company was founded in 1913 as a manufacturer of aircraft engines. Hence, the BMW logo is the abstraction of a propeller turning to the blue sky, signify the initials BMW Bayerische Motoren Werke, i.e. Bavarian factory of engines.

After the First World War, Germany was forbidden to manufacture aircraft engines, so BMW began producing brakes for railways. In 1923, the company entered the vehicle sector, initiating the manufacture of motorcycles, which even then had the classic BMW engine mounted two-cylinder horizontally on both sides and cooled air (motor type "Boxer"). A few years after, BMW obtained a license to manufacture a small car, which was called 3/15. In 1933, the company produced and designed vehicles entirely by its own technicians, successively introducing various models, both as sporting four-seater. Before the start of WWII, BMW produced the 327, spacious and luxurious car, and 328, sporty convertible. Both models outfitted a two-liter engine which was very advanced at that time.

Start-up Phase

BMW was the predecessor company of Rapp Motorenwerke GmbH, founded in 1913 by Karl Rapp.

Opportunity

Karl Rapp was an aircraft engineer in a German Company, and he wanted to start his own business of making aircrafts' engine. He opened the company at the site which was near to the company of another famous aircraft engineer of that time, Gustav Otto, of Gustav Flugmaschinefabrik, so that he may contract with him to supply his four-cylinder aircraft engines.

Vision

The vision of the founders was to establish the aircraft engine which was better than all of the aircrafts of that time in Germany. They hired Max Friz who made a design of the aircraft which was technically superior to any other aircraft of the aero-industry.

Business Model

The company merged with Flugmaschinefabrik and created Bayerische Flugzeugwerke (BFW). The reason behind that was to expand their business more and with success.

Competitive Advantage

The competitive advantage in the first few years was the unique design and technical superiority among the aero-industry. During the World War I, due to the restrictions on the production of aircrafts, the company started to manufacture engines for railway cars. Their strategy with expanding in the new businesses was good and made them successful in every new production line they undergone (Brian 2002, 233).

During the Second World War, BMW provided a significant number of military vehicles, especially motorcycles and aircraft engines. Towards the end of the war, BMW lost its three factories in eastern Germany in Munich and its facilities were destroyed by bombs.

During the time of World War I, there was a boom of motorcycles as people took it for racing and sports. At that time, people gained a new understanding of the mechanical world, since they saw armies conflicting with enemies through horses in the beginning, they finished the war by having the fight with ...