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Corporate image is a source of sustainable advantage
The development of BMW
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Recommended: Corporate image is a source of sustainable advantage
You Decide: BMW Press Release
Laura Hamil
DeVry Keller School of Management
January 31, 2016
You Decide: BMW Press Release
Problem
The Problem is that many Americans have the perception that all vehicle companies are alike. BMW wants to change that perception and educate Americans about how they are different and have been sustainable longer than most vehicle companies.
Analysis
BMW was the first car company to introduce the electric powered car and the hydrogen powered car to our society. As time has moved on BMW has been using water-soluble paint and recycling old vehicles. Today BMW has set goals to reduce emissions with its vehicles, optimize their resources, and constantly build vehicles that provide better performance.
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They have been adaptive to change for many years and have developed innovations that combine performance and efficiency (BMWusa.com, 2016). BMW has started using natural fibers in door panels and sound-proofing. BMW has a research team working on improving the electric car, finding alternative fuels for their vehicles, and more advanced hydrogen technology. BMW uses a life cycle assessment for all the vehicles which evaluates the burdens the vehicles have on the environment (Belz & Peattie, 2012). This life cycle assessment supports behavioral change within the company as well as among Americans.
Through project management BMW has a sustainability policy that supports the continuous improvement of all vehicles, supports sustainability efforts, and partners with other organizations to maintain sustainability. BMW’s goal is to reduce the environmental impact from their vehicles. BMW finds it imperative to educate all employees as well as the public in regards to sustainability and their
Increasing environmental awareness, coupled with a responsible American government and improved technology, have all contributed to the comeback of low-and zero-emissions vehicles in the US. It remains to be seen whether the automakers and oil companies will once again work to halt this progress, or embrace it as the technology of a more responsible future.
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
In the future the global car market is full of potential. There are currently 44 million vehicles and by the year 2002 experts estimate that number will grow to 64 million. That growth is not expected to be in the US, rather in countries such as: China, India, The Pacific Rim, South Africa, and South America. In America, a current trend is for the neighborhood car dealer to be purchased by a large manufacturer, such as GM, so cars can be sold through retail outlets. Other future endeavors include low emission cars, which are expected to provide expansions in sales. Some major automakers are investing in fuel cells, devices that convert liquid hydrogen into elec...
According to George Bernard Shaw, “Progress is impossible without change, and those who cannot change their minds cannot change anything” (Shaw, p. 330). In order to truly make a change, one must change the minds of the people. America’s automobile industry has done a stellar job at this. In recent years fuel economy has surpassed make, body style, and “beeps and whistles” to become the number one factor people considered when purchasing a new car or truck (Choi). This shows that not only are vehicle manufacturers working to reduce vehicular pollution by improving how our cars are built, but even those that aren't directly involved with the manufacturing process are aiding the cause by choosing to purchase vehicles they know will produce fewer pollutants and consume less gas per miles driven. This discredits Jackson’s claims that Americans don’t care about the
The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.
...rther then the end of 2010, the introduction of the electric car is not far to come. With proper government regulations and consumer knowledge, adoptability of the electric car is possible. However, one can drastically differ in opinion as to why the required elements to support such a vehicle were not readily planned to facilitate such a change. The inadequacies draw wavering concerns for both consumers and business looking for the return of value and profit. The larger picture needs to be remembered in which oil is not a renewable resource and results in pollution and environmental hazard. Consumers and business must work together to overcome the roadblocks down the road and support each other in the introduction of and future of the electric car. Adjustments will have to be made on both sides to ensure success and minimize the society and economy disruptions.
Another strategy used by BMW to differentiate itself from other automakers in the market is the proactive usage of technology and innovativeness in the development of products. From the early 1990’s, BMW has been on the forefront of incorporating technology in its designs in line with the technological advances of the modern world. This has led to the creation of inventive products. The uniqueness of these auto products put BMW in a position of advantage. The development of the hydrogen car as early as 2000 was an indicator of the company’s innovative strategy. In addition, the company also presents itself as environment friendly creating a whole range of vehicles in this category. This is a differentiation strategy meant to boost the company’s image and reputation amongst customers. In addition, this gives the environment conscious customers a variety of products to choose from giving BMW an upper hand in the industry.
Company Overview: Bayerische Motoren Werke AG (BMW) is a German holding company and automobile manufacturer that focuses on the automobile and motorcycle markets worldwide. Franz Josef Popp founded the company in March 1916. BMW is headquartered in Munich, Bavaria, Germany. It also owns and produces Mini cars, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad. It divides its activities into the three main segments: Automobiles, Motorcycles and Financial Services. Its BMW automobile range encompasses the 1 Series, including three-door, five-door, coupe and convertible models; the 3 Series, including sedan, touring, coupe and convertible models; the brand new 4 series, featuring an only coupe design; the 5 Series, available in sedan and touring models; the 6 Series, available as a coupe or convertible; the 7 Series large sedan; the Z4 roadster and coupe; the sports utility vehicles, X3, X5 and X6 and M models, such as M3, M5 and M6. It has producing, assembly, service and sales subsidiaries throughout the world. For the sake of this project, I will be focusing on BMW’s automobile range mentioned above but specifically the 3 series line. The BMW 3 series proves to be the most profitable line due to its relatively low cost and affordability whilst featuring the thrill and power of a German engineered vehicle.
BMW- differentiation strategy, high price, breadth of product line is moderate, known for their cars being in the shop constantly and high maintenance bills.
Market Segmentation, Positioning and targeting for BMW 1.1 Introduction This report aims to examine the market segmentation, positioning and targeting of BMW (automobile company). BMW will be examined giving information about the company and where it is now and any recommendations that we feel are appropriate. 1.2 BMW Company Profile BMW was formed in 1917, from the merger of two small aero engine makers. Their famous blue and white symbol stems from the colours of the Bavarian Luftwaffe and is said to resemble the view of the one of their plane through a propeller. BMW is renowned for its sporty, sophisticated & luxury image which has been built up since the 1970's with many motor sport victories ranging from Touring Car to Formula 1.
Almost all car makers around the world are responding to this issue and have begin their research to reduce the risk of climate change. The steps that the car manufacturers have to take to deal with this situation are to reduce the amount of CO2 emissions and waste produced by both of their manufacturing factories and vehicle by implementing new measures in their factories and by looking at using renewable fuels that produce cleaner emission.
The history of BMW is one of ground-breaking innovations and exceptional automobiles, including motorcycles and aircraft engines. It has a history with people of vision and of pioneering creation in the world of aviation engineering. Already we can begin to see that the BMW group is a well known and significant player in its market.
...system. Surely, it will take time for setting up a new plant and making production working smoothly with the quality assurance. How to shorten the learning curve for these works would be the first priority for BMW to think of.
The global company Mercedes-Benz is considered one of the most successful and well-known automotive companies worldwide. Since 1886, the company’s founders Gottlieb Daimler and Carl Benz made history with the invention of the automobile, including the Daimler Group, which is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles globally (Daimler, 2013). Their main focus is innovation, safety, technology, style, brand image, expansion, and superior automobiles by offering the best of the best to consumers worldwide. The brand’s philosophy is to continuously create radically new products to advance the cause of human mobility. It is also the number one luxury brand in the United States and Germany while continuously expanding in China and Russia as well (Interbrand, 2013). Mercedes-Benz has a great selection on divisions such as cars, trucks, vans, buses, and financial services offered to any consumer or business. Their global reach has increased tremendously by including production facilities in 17 countries on five continents and having 93 locations worldwide. As a pioneer of automotive engineering, their strategy is to continue the same pioneer role with the ongoing development of mobility, especially in the areas of safety and sustainability (Daimler, 2013). It is very essential for the company to focus on consumers’ needs and their highly well known brand in a competitive global economy. That is why the company Mercedes-Benz releases a brand new model every year to stay on top of its competitors by improving previous models. Some strategies practiced are global marketing, global product development, global product pricing, global advertising, global distribution, an...
It is clear that the US consumption of polluting substances like lead, platinum and rubber has dropped due to improvements in the environmental friendliness of auto manufacturing, since these materials have been in use for cars since the 1950s. By replacing materials with those of a lower density has also made an important impact on fuel economy. Studies show that making 10% reduction in mass yields 5% improvement in fuel economy. Indeed, the US automakers in the last 25 years have responded to the government regulations Corporate Average Fuel Economy by changing materials to lighter ones like aluminum and plastics. Newer developments using other components like Magnesium, polymer composites, and ceramics also are helping to make further improvements to fuel