1.Introduction Weakness, Opportunity, and Thread of BMW

1.Introduction

1.1
Background of BMW

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BMW is an automobile
manufacturing company and founded by Franz Josef Popp in 1916. It’s headquarter
is located in Munich, Bavaria, Germany. It produces automobiles
and motorcycles, and also produced aircraft engines. The name of BMW’s first
car is ‘Dixi’, based on its Austin 7 model. BMW produced first aircraft engine
in 1918. After not very far from 1918, they produced jet-engine and Warcraft
designs for World War II. It is also parent company of Rolls-Royce Motor Cars
in 1998. BMW manufactures and sells 3 brands: BMW, MINI and
Rolls-Royce.

BMW has been voted as
the most successful automobile production unit with 1,845,186 automobiles and
117,109 motorcycles as of 2012 because of its quality, manufacturing, designs,
technologies, innovation and so on. It also has a lot of good feedback from
customers in magazines, reviews and websites. As of 2016, the Owners of the BMW
are Stefan Quandt who
owns 29% of the shares, Susanne Klatten, who owns 21% and the
other 50% are publicly owned.

Although there are many
automobile companies in the world (its rivals as such – Toyota, General Motors,
Daimler, Hyundai, Honda Motor, Nissan, Ford, Volkswagen, Fiat Chrysler), BMW is
placing on the top level till today.

Therefore, this assignment
will present about strategic analysis and evaluation of BMW with its strategic
position in its global market.

2. Group
Mission and Brand Vision of BMW

Group Mission Statement

Strategy
Number ONE aligns the BMW Group with two targets: to be profitable and to
enhance long-term value – from a technological, structural and cultural
perspective. The mission statement up to the year 2020 is to become the world’s
leading provider of premium products and premium services for individual
mobility.

Brand Vision

Our
goal was to create a very personal vehicle. There will always be that highly
emotional Connection between a BMW and its driver.              

2.1  Strength, Weakness,
Opportunity, and Thread of BMW

Every organisation has (SWOT)
Strength, Weakness, Opportunity, and Thread. But they should know their
Strength to keep for long time and to compete with rivals, Weakness to reduce
as much as possible, Opportunity to prepare everything ready, and Thread to
think more for future. So that organisation will success more and more. Therefore
SWOT analysis is very important for strategic planning of an organisation. SWOT
analysis of BMW are as follow;

2.1.1 Strength

(1)   One
of the most well-known automotive brands in the world

BMW is very famous
Brand and many countries have used its products. Due to its experiences and
famous many people dare to use the product which has good commends of customers.
Being famous is one of the best reasons to become its strength.

(2)  
High budget   
                                                                                                               BMW has invested $8 billion in
Spartanburg to date and produced 3.9 million vehicles at the plant since it
went online in 1994. It currently produces the X3, X4 X5 and X6 models and
exports 70 percent of its vehicles to more than 140 countries.

BMW AG
Chairman Harald Krueger announced the investment $600 million will go toward
“manufacturing infrastructure for future generations of the BMW X models,” he
said at the 25th anniversary of the company’s announcement.

(3)  
Skillful Labour and Technology                                                                         BMW has skillful labour and when there’s
heavy work to be done, robots lend employees a helping hand. And they support
high technologies for employees reduce ergonomically unfavourable and strenuous
tasks, giving workers an opportunity to apply their unique cognitive skills to
the best effect.

2.1.2       
Weaknesses

(1)   Lack
of highlighting their products’ strengths                                                   BMW is weak of highlighting their
product, so that customer will not know their products strengths easily when
compare with its rivals.

(2)   Research
and development                                                                                BMW is weak in updating research for
their products actively. Only if they know their products errors, they can find
out the way to solve the errors and try to develop.

(3)   Customer
service                                                                                             listening customer complaints is require
because customer complaints and poor reviews will influence to future
customers.   

(4)   High price                                                                                                     
 Another weakness of BMW industry
is high price. Preferring to manufacture luxurious cars are like they limit the
segment to use their product.

2.1.3       
Opportunities

(1)   New
Technology

BMW was the first
company to create X drive which increases stability and efficiency whilst
driving. Customers who look for such a thing shall only be able to get it from
BMW as they are the only ones which the technology. Such technology gives BMW
the opportunity to be at the front line of technology in the automotive
industry now with hybrids a great demand in today’s market BMW being the first
to develop this technology before its competitors.

 

(2)   Changing
customer needs

Unique selling
proposition and continuous brand building with the help of new innovative
technologies can help BMW to cater to different target groups. BMW takes into
account the changing customer needs before launching and developing new
products.

 

2.1.4       
 Thread

(1)   Fuel
price

The threat may also
come from the Government with its awareness about fuel emissions and environmental
issues. It encourages citizens to use public transport and reduce traffic
issues. But the effect maybe low because due to BMW’s strategic environment and
most of them prefer driving Luxurious cars.

 

(2)   Rivals

As the automotive
industry has a lot of competitive environment, BMW has so many global companies
as competitors who are equally competitive. In the car manufacturing companies
Audi, Mercedes Benz etc and the bike manufacturing companies like Ducati,
Yamaha etc give intense competition.

 

(3)   PESTEL
Change

PESTEL changing is one
of the threads for every organisation. Especially the changing concerning with
government cannot know everyone in advance so that the business cannot
implement as plan.

3.
The basis of competition

The main
direction for strategy in terms of both corporate level and business level, for
BMW, remained the same in terms of Ansoff matrix and Porter’s generic
strategies. In other words, we can say that BMW carried on using existing
strategies. Though, there were few additions which will be describing below.