The Competitive Strategy Of BMW

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Task 3.) BMW—Resource Base
Introduction

BMW is a well-established company that has operated in the automobile industry for almost 100 years. Over this time period the company had to face many challenges, however it managed to become one of the most successful and well-known companies in the world. (BMW) This analysis will examine BMW’s strategic resource base, how they are and should be managed and whether the competitive advantage of the company is sustainable. Further the paper will elaborate on if and how BMW is satisfying customer needs. Also threats regarding the competitive advantage of the company will be identified and examined.
Strategic Resources

BMW has been using a product differentiation strategy, which resulted in the generation
BMW has always been among the innovators in the industry. For instance the Bavarian carmaker was a pioneer of turbocharging (Meiners, 2015) and more recently the company is competing to bring the first steer-less car to the market (Gibbs, 2015). The “BMW Efficient Dynamics” strategy symbolizes this strong R&D and innovation emphasis of the company. BMW’s vision for this strategy is: “Sheer driving pleasure through maximum performance and minimal fuel consumption.“ The combination of efficiency and minimal fuel consumption has been quite successful which can be seen in the i series. Another difference between BMW and many of its competitors is the fact that the company tries to improve already existing products, whereas other car manufacturers usually leave their products unchanged. The R&D department of BMW therefore is not only concerned with creating new and innovative products and solutions, but also works on improving already existing and established cars. (BMW, 2015) According to a ranking by The Boston Consulting Group (BCG) BMW is the third most innovative company in the automobile industry and 18th overall. (BCG Perspectives,

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