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Bmw Analysis

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Bmw Analysis
Resource based analysis of BMW:
RESOURCES CATEGORIES
BMW RESOURCES
PHYSICAL RESOURCES
BMW’s technology, conventionally designed and styled, effective segmentation according to the market, supply chain and dealership management
FINANCIAL RESOURCES
Turnover of € 41.53 billion in 2003, gross margins of € 3.2 billion in 2003, annual surplus of € 3.2 billion in 2003, 7.4% profit margins in 2003
HUMAN RESOURCES
Highly qualified labor force, Young and affluent professionals
INTELLECTUAL CAPITAL
Reputation for engineering excellence, brand identity of being powerful , reliable and luxurious, 1104.3 deliveries in 2003, sales of 277000 in 2003
Strategic capability of BMW
CATEGORIES
BMW RESOURCES
THRESHOLD RESOURCES
Integrated supply chain, young and well heeled employees, wide spread production and assembly units
THRESHOLD COMPETENCIES
Quality, reliability, dealings and relationship with supplier
UNIQUE RESOURCES
Engineering excellence, high quality labor force,
CORE COMPETENCIES
Technology, speed of production, the ultimate driving machine
External resources and value adding network
Customer value chain
Channel value chain
Range of products and designs
Design
Suppliers
Suppliers
Suppliers
Suppliers
Location 1
(Assembler)
Price variation dependent on the product specifications
Organizations
Value Chain
Price
Core location
(Assembler)
Suppliers
Suppliers
Suppliers
Suppliers
Product design and price according to the location
Location
Suppliers
Suppliers
Suppliers
Suppliers
Location 2
(Assembler)
It is difficult for a single organization to manage all the value based activities right from the design of the product to delivering the final product or service to the customer. This process is generally carried out with the help of a value network. A value network can be termed as a combination of inter-organizational process that proves beneficial to create a product or a service (Timmers, 2008).
The value network of BMW is as
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