Introduction
Bayersiche Motoren Werke Group (BMW Group) is a German company whose operations are “focused on the premium segments of the international automobile markets (BMW Group)”. BMW Group was founded in 1916 and established its main plant and headquarters in Munich, Germany just after World War I in 1922. Those facilities exist as BMW’s headquarters and flagship plant to this day (BMW Group).
BMW Group coordinates its activities in more than 150 countries on 6 continents and operates 29 manufacturing facilities in 13 of those countries (BMW Group). Those manufacturing facilities are concentrated in Western Europe with 9 in Germany, 2 in Austria, and 3 in the UK. Its other manufacturing facilities and joint-owned plants are scattered abroad with 3 in North America, 2 in South America, 2 in Africa, and 7 in Asia (BMW Group). With BMW, MINI, and Rolls-Royce, the BMW Group owns three premium brands in the global automobile industry. In addition to its strong position in the motorcycles market with the BMW brand, the BMW Group also offers a successful range of financial services which make up a relatively small portion of BMW Group’s total revenue (BMW Group).
BMW Group reports its segmented revenues according to geographical sales. The graph below breaks BMW Group’s overall annual revenues into 4 geographic categories with 3 subcategories:
Figure 1 – Overall Revenue Growth by Geographic Operating Segment
Expressed in Euros. Source: BMW Group’s 2012 Annual Report
As shown in Figure 1, the European and Asian markets in particular have shown impressive sales growth since 2009 with CAGRs of 7% and 44%, respectively. BMW Group’s revenues from China alone have increased from €2.76 billion to €14.44 billion in 4 years (CAGR:51%). Huge sales growth in the Asian market has proven very lucrative for BMW Group who forecasts further growth, especially in developing markets.
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