BMW

Submitted by

Jenu

Company History
BMW was founded by OTTO FLAGMACHINEOFABRICK BMW (Bayerische Motoron Worke) was founded in 1918 in Germany. Mission: To be the most successful premium manufacturer in the industry. Pre war the company used to produce Aero Engines. After world war II the demand for Aero Engine gone and the Company then moved to Automobile Manufacturing.

 The turning point came In 1961, when BMW launched model BMW 1500 which helped establish BMW automobile brand as reputation for engineering excellence. The company has its 23 production and assembly plants in 13 countries worldwide. BMW employed more the 1,00,306(in 2012) employees in their plants.

Strategic Competencies
Engineering Excellence BMW Brand Management Open and Design based culture

BMW Positioning
Positioned as a Ultimate Driving Machine with Powerful, Reliable and Luxurious Image and Focused to: Young Professional High Performance saloon Automobiles

Strategy of BMW
The main factor of BMWs success is attributed to the development of consistent marketing policy, the market niche strategy. Positioning : Positioned differently and Pricing differently in various nation Brand : Brand Management, Communication HR: Innovation at centre stage, no penalty on faults Design :Conventionally designed and Traditionally styled SCM : Long Term Relations with Suppliers. Customer Service and sales : Close Proximity so better segmented

 Productivity: Rise productivity of at least 5% year

Share holders : high profits with value growth.

Porters Five Forces

Supplier:
Low New Entrance: Moderate

Substitute:
Moderate

Customer: High

Competition:
High

Challenges
Size of the Company and Range Of Models Focused to Organic Growth: Strong Competition with range of Brands

Ageing population
Mobility boundaries in growing urban areas

Future Of BMW
An additional automotive brand would have to be a perfect fit for BMW and its strengths Emerging Economies Focused Communication needed (BRIC Nations) - Emerging markets newer Millioners also be elevated to BMW prestige Rationalize ambitious new product launches Focused needed to tap into efficiency potential amounting to billions.

Strength Strong Brand name Powerful Distribution network and relation with supplier Sophisticated brands like RollsRoyce is a part of the group The BMW group spends huge % of its revenues on R&D, which is the highest in the industry Increased turnover and trading profits Strong marketing communication Skilled labor force

Weakness Difficulty in dealing with labor cost control in European political climate Over reliance on BMW brands Substitute products and technology Organic way of growing

Opportunity New Products and Segments Market shifts to globalization & Entry in to developing countries like south Africa Innovation and alliances, Like hybrid car New Technology in Automobiles

Threats New & existing competition Volatility in price of fuel New legislation Economic recession Hostile bids Far-East automobile companies expansion Extremely high competition for customer and resources

Thank You