Launching the Z3 Roadster Case Analysis
November 12, 2014
PEST The Z3 Roadster initiative developed when a decrease in the worldwide motorcycle market was evident in 1992. In the generation, motorcycles were symbols of excitement. There were emotions, feelings and fantasies that were tied to motorcycles. Hence, BMW developed the alternative vehicle, Z3 Roadster that addressed the same emotions, feelings and fantasies that motorcycles fulfilled. During that time, BMW was aware that other luxury car import manufacturers were to have similar concepts under development. BMW was perceived as a “mystical” vehicle that was built in Germany and was perceived as “made in Germany.” This idea induced risk when BMW built a manufacturing plant in Spartanburg, South Carolina, introducing its first own “made in USA” car. Skepticism was promoted by other German manufactures, and BMW was questioned whether its engineering was on par with German engineering.
The Company BMW is one of the automobile companies with a high position in the luxury/performance segment in the United States automotive market. In 1992, BMW introduced a program to reposition the brand from “Yuppie Status Symbol” to “Ultimate Driving Machine.” This repositioning was followed up with price changes to match its new brand positioning, improving their product lines and maintaining their business strategy: “To provide the world market with luxury/ performance vehicles that were each the best in its class, with a unique and definitive positioning in the marketplace.”
With the introduction of the U.S-based BMW car, the Z3 Roadster, the Chairman and CEO of BMW (U.S) wished to promote “made by BMW,” and not “made in Germany.” This was an initiative to promote globalization of the brand and its cars. The creation of a manufacturing plant in South Carolina gave the company a perk of avoiding Germany’s high cost. The investment in the plant was $600 million dollar and still increasing. The plant builds 250 to 300 cars a day and is flexible that it can
PEST The Z3 Roadster initiative developed when a decrease in the worldwide motorcycle market was evident in 1992. In the generation, motorcycles were symbols of excitement. There were emotions, feelings and fantasies that were tied to motorcycles. Hence, BMW developed the alternative vehicle, Z3 Roadster that addressed the same emotions, feelings and fantasies that motorcycles fulfilled. During that time, BMW was aware that other luxury car import manufacturers were to have similar concepts under development. BMW was perceived as a “mystical” vehicle that was built in Germany and was perceived as “made in Germany.” This idea induced risk when BMW built a manufacturing plant in Spartanburg, South Carolina, introducing its first own “made in USA” car. Skepticism was promoted by other German manufactures, and BMW was questioned whether its engineering was on par with German engineering.
The Company BMW is one of the automobile companies with a high position in the luxury/performance segment in the United States automotive market. In 1992, BMW introduced a program to reposition the brand from “Yuppie Status Symbol” to “Ultimate Driving Machine.” This repositioning was followed up with price changes to match its new brand positioning, improving their product lines and maintaining their business strategy: “To provide the world market with luxury/ performance vehicles that were each the best in its class, with a unique and definitive positioning in the marketplace.”
With the introduction of the U.S-based BMW car, the Z3 Roadster, the Chairman and CEO of BMW (U.S) wished to promote “made by BMW,” and not “made in Germany.” This was an initiative to promote globalization of the brand and its cars. The creation of a manufacturing plant in South Carolina gave the company a perk of avoiding Germany’s high cost. The investment in the plant was $600 million dollar and still increasing. The plant builds 250 to 300 cars a day and is flexible that it can