Bmw Business Strategy
BMW
Overview
This paper explores the strategies and environmental influences (both Internal and External) of a German car giant BMW, Bayerische Motoren Werke, which has established itself in the niche luxury car market. It has Headquarter in Munich, Germany, with presence all over the world. The luxury car includes both traditional luxury cars and functional luxury cars. BMW is one of the most successful car companies in Europe and worldwide. Despite experiencing the overall sales slump particularly in the German and the Western European Markets, the Group has been able to improve its market share and even increased deliveries to their customers in the vehicle, as well as in the motorcycle sector. The company has built brand equity over the years through the continuous branding efforts for high quality products. Direct competitors of BMW are luxury car manufacturers from Japan, the U.S., and other European Union countries. Globally, BMW’s biggest U.S. competitors are Ford, Cadillac, Lincoln, Buick, and Chrysler. And Japanese competitors include Lexus, Honda, and Toyota. BMW competes locally (in Germany) and globally with other EU companies such as Mercedes Benz, Audi and Jaguar.
No two organizations in the world could be alike so the environmental influences of BMW could be described through;
1. Internal Environment
2. External Environment
The macro-environment or external environment of the organization is further broken down into;
A. Immediate Environment
B. General or Task Environment.
The above phenomena of environmental factors are described by the PESTEL analysis, which helps to analyse external environment i.e. General Environment. Figure 1 shows the Organization, Internal Environment and its factors.
Figure 1
Figure 2 represents two further outer circles, which is Immediate Environment and General/Task Environment.
Bernhardt, Kenneth L., Cases in Marketing Management, 6th Edition, Richard D. Irwin, 1994, 754
Overview
This paper explores the strategies and environmental influences (both Internal and External) of a German car giant BMW, Bayerische Motoren Werke, which has established itself in the niche luxury car market. It has Headquarter in Munich, Germany, with presence all over the world. The luxury car includes both traditional luxury cars and functional luxury cars. BMW is one of the most successful car companies in Europe and worldwide. Despite experiencing the overall sales slump particularly in the German and the Western European Markets, the Group has been able to improve its market share and even increased deliveries to their customers in the vehicle, as well as in the motorcycle sector. The company has built brand equity over the years through the continuous branding efforts for high quality products. Direct competitors of BMW are luxury car manufacturers from Japan, the U.S., and other European Union countries. Globally, BMW’s biggest U.S. competitors are Ford, Cadillac, Lincoln, Buick, and Chrysler. And Japanese competitors include Lexus, Honda, and Toyota. BMW competes locally (in Germany) and globally with other EU companies such as Mercedes Benz, Audi and Jaguar.
No two organizations in the world could be alike so the environmental influences of BMW could be described through;
1. Internal Environment
2. External Environment
The macro-environment or external environment of the organization is further broken down into;
A. Immediate Environment
B. General or Task Environment.
The above phenomena of environmental factors are described by the PESTEL analysis, which helps to analyse external environment i.e. General Environment. Figure 1 shows the Organization, Internal Environment and its factors.
Figure 1
Figure 2 represents two further outer circles, which is Immediate Environment and General/Task Environment.
Bernhardt, Kenneth L., Cases in Marketing Management, 6th Edition, Richard D. Irwin, 1994, 754
References: |Autofacts. (2004). Eurpean Car Market | |Bernhardt, Kenneth L |754 pages (coauthored with Thomas C. Kinnear). | |BMW (2009) Revenue Fell 4.7% www.Luxury Waned at SmartMoney.com | |Organization, W. H. (2008, July 12).Environmental Pollution Retrieved September | |22, 2009, from World Health Organization: http://www.who.int | |Free Press, 1998 | | | |Statistics, D. a. (2009, July 18). Data and Statistics Retrieved September 20, 2009, from The | |world bank: http://web.worldbank.org | | | |Transport and Environment (2006),www.transportenvironment.org |