Case 2 focuses on the Bayerische Motoren Werke (BMW) Company. My analysis will define each of the company's strengths, weaknesses, opportunities, and threats as brought about within the case as well as through additional research.
The history of the Bavarian Motor Works is a history of innovation, dedication and determination. These achievements are reflected in the BMW emblem, symbolizing a rotating airplane propeller from BMW's early years as an aircraft engine manufacturer. Today, the emblem signifies a global company that annually produces hundreds of thousands of engines, motorcycles, and cars.
May 19, 2003 BMW was about to launch a new version of their already extremely popular 5 series of luxury sedans. The automobile being introduced was BMW's fifth generation 5 series and was expected to initiate BMW's aggressive and extremely ambitious plan of rolling out a new or updated model nearly every three years through the year 2005. CEO Helmut Panke defined his goal as "expanding annual sales by 40 percent over the next five years, to 1.4 million cars, and beat out Mercedes-Benz (DCX) as the number one maker of premium cars in the world. We won't accept the position of number two." Certainly a very aggressive plan, could it be done?
The auto market during the 1990's had begun to shrink as a percentage of total sales. This was particularly evident in the United States where the auto market was hot for some new niches and BMW was finding it costly to make three differently sized cars, namely the 3, 5, and 7 series.
Strengths
Reputation. Having a reputation for luxury, BMW's are smooth and refined. BMW have developed a marquee prized highly by many company executives. The BMW brand also relates well to the domestic owner reinforced by BMW's reputation for quality, reliability and their dealer's attention to service. Hailed as the ultimate driving machines and leading the field in a whole host of classes, BMW are constantly innovating in their quest to stay ahead of the pack.
Engineering History. BMW is not only a car maker; they are one of the world leaders in motorcycle production, aircraft engines, in addition to marine engines. BMW has a long history of providing the best engineering possible in the market.
Facilities. BMW's factories are considered the most flexible and most productive in Germany; its suppliers are the industry's best; and the workforce among the industry's most talented.
Strong Financial Position. Despite a 53 percent increase in research and development and a 75 percent increase in capital expenditures over the past two years, BMW's net profit for 2003 rose 8.
GM should continue to use its technological advantages to create innovative automobiles, but do so cautiously. GM should follow the direction of today’s environmentally conscious consumers who want less expensive, economical automobiles. GM should primarily utilize a cooperative game-theory approach in its sales and marketing strategies in order to stay in sync with the current automotive industry needs.
Kiley, David. Driven: Inside BMW, the Most Admired Car Company in the World. Hoboken, NJ: John Wiley, 2004. Print.
3 reviewed relevant marketing plans from BMW. We needed to understand the “4 C’s”: their
Perhaps the CAR could be initially launched in a small selected test market, stressing the dialogue with the customers about the value of the product and service. Afterwards, target pricing in pace with to the company’s strategic objective of a deft market penetration can beacon engineers to rebalance the technological features of the CAR. This also accommodates better for investors’ expectations of a fixed return. Moreover, it allows AUDI’s management to concert its pricing strategy and counteract unforeseen changes in the all too sensitive demand, as the link between customer value perception and product’s cost becomes alive. After all, relying solely on a forecast is not advised, as it cannot possibly capture all the dynamics of a fairly unknown market for a project which needs to age in the years to come.
Ford Motor Company has been and till the date is known as the king of innovations in the automobile industry. Their research & development department and innovation of interchangeable parts in moving assembly lines resulted in extraordinary global extension for them. They are an old heritage who ruled and still doing impressive jobs in the global automobile market. Some prestigious motor brands are also owned by Ford.
In this case, why consumer chose Porsche among so many other brands? Porsche buyers not only treat their car as a transportation which convenient them, they also subsequently set criterion on their car while other car buyers evaluate alternatives based on specification which satisfy practical needs. For instance, saving petrol, eco-friendly, maintenance costs and others. To the buyers who want to purchase Porsche, they takes a gander at different thing such as the sound produced by the car, the speed, design, horse power and so on. They felt that car is something for them to be enjoyed and to be delighted with. The potential customer will look for options from other brands or different types or Porsche cars that are compatible to suit their taste, desires or
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.
BMW- differentiation strategy, high price, breadth of product line is moderate, known for their cars being in the shop constantly and high maintenance bills.
Karl Benz invented the first automobile in 1866; it has changed the world in how we commute every day. From riding in carriages to now cutting our time travel whether it is riding a bus or our on car. It has become more of a necessity in today's world to have a car because its something that we choose to have in our daily life that it is a choice that is high on the priority list to own. As to wealthier people the type of car you drive puts in a different class. Where some get the choice of car that they want others have a certain budget on what to look for. The way an automobile symbolizes today, changed in society, and how a car has become a collection.
Since the 1890s, the time when the automotive industry began, the industry has developed rapidly. The industry started its development in the US, which contributed over 90% of the global vehicle production before the Great Depression (Popular
General Motors has been for the last 100 years a leader in American Industry. They dominated the automobile industry. General Motors made the middle class in America back in the 50s and 60s and in 1980s GM was the top car manufacturer in the USA until the arrival of the Japanese cars. General boasted the characteristic in the corporate world as being powerful, stubborn, monolithic, and authoritarian and it main concerns was the assembly lines, switch is called the seeds of success.
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.
Audi is majorly owned subsidiary of the Volkswagen (VW) Group and is headquartered in Germany and operation in more than 100 countries. With the commitment the implement progressive technology and its technological ingenuity, by late 1990’s Audi became globally respected brand among luxury automakers. After its entry in luxury sector in early 1990’s, Audi leveraged its ingenuity and gained the competitive edge over the industry parameters of innovative design, safety and performance. Today, Audi remains focused on satisfying on customer needs by building a brand that exemplifies individuality, exclusivity and excellence.
Mercedes-Benz is a leading Automotive Manufacturer throughout the world. Even though they are the best at what they do, they do not focus all their attention on only automotives, they excel in CSR and involvement in the community as a whole. They are always helping to develop and educate the future children of the world, as well as help people affected with HIV/Aids with education to keep a steady income and teach general skills. This is what sets them apart from the rest.
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...