COMPANY BACKGROUND

Name Bayerische Motoren Werke AG

Logo
Industries served Automotive
Geographic areas served Worldwide
Headquarters Germany
Current CEO Norbert Reithofer
Revenue 76.848 billion (2012)
Profit 5.122 billion (2012)
Employees 105,876 (2012)
Main Competitors Chrysler Group LLC, Daimler AG, Ford Motor Co., General
Motors Company, Honda Motor Company, Nissan Motor, Tata Motors, Ltd., Toyota Motor
Corporation, Volkswagen AG and many other automotive companies.
BMW is an automobile and motorcycle manufacturer based in Munich, Germany. The company
sells BMW, Rolls-Royce and Mini cars and BMW Motorrad and Husqvarna motorcycles. In
2012, Forbes announced BMW as the most reputable business in the world.


INTRODUCTION

BMW can trace its roots back to Karl Rapp and Gustav Otto. In 1916, the Flugmaschinenfabrik
Gustav Otto company had merged into Bayerische Flugzeug-Werke AG (BFW) at government
behest. Elsewhere, in 1917, the Rapp Motorenwerke company morphed into Bayerische Motoren
Werke GmbH, which was duly converted into an AG (public limited company) in 1918. BMW
AG subsequently transferred its engine construction operations including the company and
brand names to BFW in 1922. The date of BFWs founding, 6 March 1916, has therefore gone
down in history as the birth-date of Bayerische Motoren Werke AG.
Bavarian Motor Works (BMW) is one of the leading companies and a premium brand in the
automobile industry. It is known for its quality, efficiency and innovation. It is associated with
high performance engineering excellence and services. It is one of the most competitive and
powerful brands in the whole world with BMW, Mini and Rolls-Royce with all of them being
one of the top brands and they are cited as one of the best in the world with their wide range of
products.
From 1917, each of the companys products proudly displays the BMW emblem, which
incorporates the state colors of Bavaria. At the end of the 1920s, the emblem makes its first
appearance in the companys advertising as a rotating propeller taking a form that will be used
as the logo long into the future.
Undisputed world leader in the premium automotive industry, BMW is represented in Mauritius
by Leal & Co. Ltd. BMW Cars are stylish, powerful and athletic, and combines technology,
performance and comfort.

BUSINESS STRATEGY OF BMW GROUP
The business strategy of BMW Group is based on having a powerful brand image. This strategy
forms the foundation of the success of the BMW Group. BMW Group believes in maintain core
values as technology, innovation, performance, quality, reliability, exclusivity and customer
satisfaction. The company slogans of BMW Group in English i.e. The Ultimate Driving
Machine and Sheer Driving Pleasure give us an overview of the marketing strategy it adopts.
The strategy of BMW Group is clearly defined on the homepage of the company i.e. Identify
potential and encouraging growth. Knowing what we represent. Recognizing where our strengths
lie and making the best use of every opportunity. Goals we have attained are in essence the point
of departure for new challenges.
BMW Group mission statement is defined as to be the most successful premium manufacturer
in the car industry.

MARKETING STRATEGY OF BMW GROUP
The success of any company is based on how effective marketing and advertising strategy it
adopts. BMW Group adopts a marketing campaign of targeting its customers. In the slogans i.e.
The Ultimate Driving Machine and Sheer Driving Pleasure. BMW tells its customers and
other people that BMW cars give a pleasure in driving that no other car can give.
The marketing strategy of BMW also consists of a strong advertising strategy. WCRS has been
BMWs advertising agency since 1979 and have really made a great brand image for BMW by
advertising campaigns including famous actors like James Bond, Tom Cruise etc.

BMW BRAND IMAGE
The brands of BMW Group include BMW, MINI Cooper and Rolls Royce. The three brands
speak for themselves and are of superlative excellence. All of them have great innovation ability
and the customers really feel pleasure in driving.
This is also BMWs business strategy i.e. to maintain outstanding brand image among customers.
The great advertising strategy of BMW Group is also a reason for BMWs great brand image.
This brand image of BMW has been built by using over 300 colour advertisements. BMW Group
in all advertisements have remained consistent on the substance used in the cars themselves. The
three brands of BMW Group are:
BMW brand focuses on one thing, Sheer Driving Pleasure.
MINI is different; extroverted, spontaneous and in every respect something out of the ordinary
and ideal for a society that is young and unconventional.
In 2003, Rolls Royce became a part of BMW Group and is the most fascinating and popular
brand among customers, the luxury motor car par excellence.




BUSINESS ENVIRONMENT
The business environment surrounds and impacts upon the organization. There are two key
elements to the business environment which are the microenvironment and the
microenvironment.
MICRO ENVIRONMENT
The microenvironment is made from individuals and organizations that are close to the company
and directly impact the customer experience. Examples would include the company itself, its
suppliers, other marketing input from agencies, the markets and segments in which your business
trades, your competition and also those around you (which public relations would call publics)
who are not paying customers but still have an interest in your business. The Micro environment
is relatively controllable since the actions of the business may influence such stakeholders. Micro
environment are those elements that are close to a company that impact the companys ability to
serve its customers. The micro environment of the organization consists of those elements which
are controllable by the management. Usually the micro environment does not affect all the
companies in an industry in the same way, because the size, capacity, capability and strategies
are different. There are 6 components in a micro environment.





1. Competitors
The competitive environment consists of certain basic things which every firm has to take note
of. No company, whatever large it may be, enjoys monopoly. In todays world business a
company encounters various forms of competition. The most common competition which a
companys product now faces is from differentiated products of other companies. For example
there is brand competition whereby BMW compete with its rival like Mercedes which in other
words mean that both are giving the same product, service but under different brand
We have also have Product form competition for example if a consumer want to buy a BMW,
and the option that is available to him that he might be attracted. Usually these option are not
necessary in the car. Like a consumer want to buy a BMW with option like sunroof, body kit,
sports exhaust pipes and so on. These are known as Product form competition

2. Consumer
According to Peter Drucker, There is only one valid definition of business purpose, that is to
create a customer. The business enterprises aim to earn profit through serving the customer
demand. It now thinks more in terms of profitable sale rather than more sales volume for its sake.
Today marketing of a firm begins and also ends with the customers. Now a days, a business firm
to be successful, must find customers for its products. This is the reason the customers thus
constitute the most important element in the micro environment of business. Products sales
depend mainly on the degree of consumer satisfaction.
For example if a consumer buy a brand new BMW and after some months he is having some
problem and that the company is ignoring him or taking much time to solve the consumer
problem this might be a bad reputation for the company image and also a bad publicity therefore
BMW has to make sure that their clients are well satisfied with the service that BMW is offering


3. Supplier
Regarding the suppliers, the organisation can think of availing the required material or labour
according to its manufacturing programme. It can adopt such a purchase policy which gives
bargaining power to the organization. According to Michael Porter, the relationship between
suppliers and the firm epitomizes a power equation between them. This equation is based on the
industry conditions and the extent to which each of them is dependent on the other. Suppliers
are either individuals or business houses. They combined together; provide resources that are
needed by the company. Now the company necessarily should go for developing specifications,
searching for potential suppliers, identifying and analyzing the suppliers and thereafter choose
those suppliers who offer best mix of quality, delivery reliability, credit, warranties and
obviously low cost. The development in the suppliers environment has a substantial impact on
the operations of the company. In recent trends companies can lower their supply cost and
increase their product quality. For example BMW has to maintain very good relationship its
suppliers. Lets say with its suppliers of tyres Michelin. BMW must be very close to its suppliers
so that there might not be too much time to deliver the product. Also BMW must have a good
relation so as to benefit from facility of payment else BMW might be in a bad situation if he has
a bad reputation with its suppliers


4. Public
Literally word public refers to people in general. According to Philip Kotler, A public is any
group that has an actual or potential interest in or impact on a companys ability to achieve its
objectives. The environmentalists, consumer protection groups, media persons and local people
are some of the well-known examples of publics. The company has a duty to satisfy the people at
large along with competitors and the consumers. It is an exercise which has a larger impact on
the well-being of the company for tomorrow s stay and growth. Create goodwill among public,
help to get a favorable response for a company.

5. Marketing intermediaries
Market intermediaries are either individuals or business houses who come to the aid of the
company in promoting, selling and distributing the goods to the ultimate consumers. They are
Middlemen (wholesalers, retailers and agents), distributing agencies, market service agencies
and financial institutions. Most of the companies find, it is too difficult to reach the consumers.
In such cases the agents and distribution firms help to reach the product to the consumer.
Any type of intermediary the company must take into active consideration, the following aspects:
(i) The company has also to constantly review the performance of both middlemen and others
helping its efforts periodically. If necessary, it may take recourse to replacement of those who
no longer perform at the expected level.
(ii) Middlemen come into being to help overcome the discrepancies in quantities place, time,
assortment and possession that would otherwise exist in a given condition.
(iii) It is advantageous and also efficient to work through the established Marketing channels
instead of creating one and thus going for experiments.
(iv) The manufacturer has to decide the most cost-effective method of intermediaries to reach the
product to consumer that will help to increase the profit.

6. Workers and trade unions
As per the production function theory, the labour gets more importance. He is also one of the
pillars of the company. The organised labours is highly secured their position compare to
unorganised workers So, the workers now prefer to join labour unions which invariably resort to
collective bargaining and thereby makes them less vulnerable to employers exploitation. On the
other hand, Trade Unions are a major component of a modern business. Trade Union of workers
is an organisation formed by workers to protect their interests, improve their working conditions
etc. All Trade Unions have objectives or goals to achieve, which are contained in their
constitution, and each has its own strategy to reach those goals Trade Unions are now considered
a sub-system, which seeks to serve the specific sub-group s interest (i.e. workers) and also
considers itself a part of the organisation. Therefore BMW has to be very vigilent concerning its
workers. The company must at no cost make discrimination among its workers because this can
cause the company big loss if the trade union decide to go on strike.

MACRO ENVIRONMENT

Macro environment factors are uncontrollable external forces that affect how a business operates.
They are largely out of the control of the business, and often require changes in operating,
management, production, and marketing. Analysts often categorize them using the acronyms
PEST or PESTEL. Broken down, PEST stands for political, economic, social, and technological
concerns. PESTEL also includes environmental and legal factors.

PESTLE ANALYSIS
Political Factor: Political refers to the probable government laws and regulations, security
measures and restrictions that can apply to the industry as a whole. The probable factors that
affect the automobile industry are:
Laws and regulations had affected the automobile industry since its outburst. These laws
generally revolved around the environmental norms that were to be fulfilled by any car
industry. Thus the car manufacturers had to take care of the environmental issues during
manufacturing of cars.
Taxes and government foreign policies are critical for the automobile industry. The
foreign policies help to us decide the probability of success in the global market.
The political factor has a vast influence on BMW and the spending power of consumers and
other businesses. If the government increases tax, the price of a BMW will increase due to
imposition.

Economic factors: Economical factors are related to the exchange rates, economic growth
globally and the business setting prevailing in the industry. Economic factors for the BMW
industry are:
There was excess capacity of cars produced thus giving rise to high amount of revenue in
marketing and new product designs. Thus there was lot of revenue withheld even though
demand was less than supply.
Economic downturn.
Surplus capital and buying power in the developing economies like India and China and
their personal emergence in the global market place.

In June of 2012 BMW was listed as the 1 most reputable company in the world by
www.Forbes.com. One of the best indicators of how valuable a brand is a global annual
BrandZ Top 100 survey, conducted by the world market research firm Millward Brown.
The value of an automotive brand depends on many factors. According to
www.economy.bg BMW Group returns to the top of this years ranking after last that the
company was overtaken by Toyota. According to the results of BMWs value increased
by 10 % over the past 12 months and an amount of 24, 62 billion dollars, while Toyota
fell with 21, 78 billion dollars or this means 10 %.

The economic crisis that has occurred in the last years has effect on consumer purchase
behaviour and also consumer ability to gain credit because of the credit crunch. In 2007 BMW
lost 517 million due to currency fluctuations and increasing raw material prices, this is another
factor regarding the economic climate because the dollar has fallen against the Euro. The
governments have imposed new road tax and they are dependent on a car emissions. The oil
prices have reached 150 dollars a barrel and this is another contributing factor that has affected
BMWs sales. The raw materials due to increasing transport cost, went up in price, which
increased BMWs own costs and in that way affected profits. On the other hand this made the
price for diesel and petrol rise that increased the cost of transportation for road users. Consumers
are looking for more fuel efficient vehicles in order to offset the rise in fuel prices and the
higher road tax and that has an effect on the larger vehicles.

Social Factor: Social factors include the changes in cultures and demo graphics globally apart
from change in buying pattern and capacity of the consumer. Social factors having an impact on
the car industry are:
Changes in the customer predilection from car being a status symbol to fuel efficiency
and low emission cars.
Changes in buying pattern of the consumers due to recession in mature markets.
Environmental issues and awareness of the harmful emissions through automobiles
That culture of a given country consists of the values, attitudes and beliefs of its people which
will affect the way that they act and behave. Culture is able to affect on consumers tastes and
preferences, able to work, attitudes to work and also education and training, attitudes to ethics,
attitudes to credit, to the social role of a business in society and etc. For the last years BMW
Group specialized into many different markets and countries meaning that they are dealing with
different cultures, values, expectations and incomes. In order to be successful in all markets this
means that the winning formula in one country is not necessarily work in another and so this
should be taken into account.

Technological factors: This involves developing an understanding of the effects of changes in
technology on all areas of a business and its activities including production processes, products
and services, information and communications, transport and distribution, society, politics and
economies.
Increase in use of technology to gain a clear competitive ad vantage
Use of new and sophisticated design to overcome the decreased margins in the industry.
Modifications or restriction on technology causing environmental pollution
New technology provides to better quality and functionality for the customers and this change
affect the products available to consumers and businesses.

Environmental factors: Environmental factors include the weather and climate change. Changes
in temperature can impact on many industries including farming, tourism and insurance. With
major climate changing occurring due to global warming and with greater environmental
awareness this external factor is becoming a significant issue for companies to consider.
Shift in consumers tastes and preferences towards use of more eco-friendly cars, hybrid
cars, fuel cell cars etc.
Stern application of the EURO norms set up to curb pollution in developing countries.
BMW Group has had to invest in qualified technologies in order to maintain their competitive
advantage in such a fast changing industry like this. The last technological advances of BMW
Group they showcased by Formula 1 car, which has the very newest technology concerning
engines, safety and performance skills.
The BMW Groups long term energy strategy its innovations for improved fuel economy. In
the period from 1995 to the end of 2008 the BMW was able to reduce CO2 emissions of their
vehicles sold in Europe with almost 27 %.

The future technological achievements of BMW include:
Brake energy regeneration
Auto Start Stop function and gear shift indicator
Fuel economy through ancillary component management
BMWs hybrid models: the BMW Active Hybrid X6 and the BMW Active hybrid 7.
Demand controlled cold air intake.
New wind tunnel technology for innovative aerodynamics.
Hydrogen 7 first series developed hydrogen vehicle with a hydrogen combustion
engine

Legal factors: There are few reasons that are very important for legal force in business
environment. There are many reasons for companies produce law quality products: lying with the
price and not actual advertising, trying to take attention and dont interest of customer
satisfaction, interest only in making profit.
BMW Group is interested to protect the customers and the society at all of unfair advertising and
business behavior and activities. Also the company it has a big role in wealth activities, helping
to not so developed countries to cover with wealth problems and try to develop their knowledge.








SWOT ANALYSIS
SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position
of the business and its environment. Its key purpose is to identify the strategies that will create a
firm specific business model that will best align an organizations resources and capabilities to
the requirements of the environment in which the firm operates. Lets us consider the SWOT
ANALYSIS of BMW:

STRENGTHS
BMW brand is the third most valuable automotive industry brand in the world valued at
$29 billion. In 2012, Forbes has also listed BMW as the most reputable business in the
world. BMW is a well-known company with a high status branding that has a very high
recognition factor.
BMW has advertised their cars to consumers through media and film industry greatly
over the years showing that their cars are built for all classes.
.Another Strength is that they have high budget to invest which can pay for labour,
services, or product research. This means that BMW is a profitable company who has
enough money to invest.
They also have highly skilled labour, as BMW is a big company they need skilled labour
to make their products because BMW is a branded company, if the labour is poor the
products will be cheap and they can lose customers. To make customers they have to
invest more. The more they invest, more they make profit.
BMW Group adopts the Strategy Number ONE with its four pillars: Growth, Shaping
the future, Profitability and Access to technology and customers. It aligns the BMW
Group with two targets: to be profitable and to enhance long-term value in times of
change. The mission statement up to the year 2020 is clearly defined: the BMW Group is
the worlds leading provider of premium products and premium services for individual
mobility.
Environment friendly vehicles; The company tries to develop environment friendly cars
by making them more efficient. It offers nearly 20 models that emit CO2 as low as
140g/km. To make BMW cars more environment friendly firms engineers develop new
types of fuels, such as hydrogen, too.
Corporate Social Responsibility (CSR); BMW is strongly committed to the environment
protection, employee and community well-being and sustainability programs. The
company invests large sums in employee health management, programs promoting
balanced work life, sustainability requirements for its suppliers and producing zero waste
at its plants.


WEAKNESSES
Developing new models, is it really worth it. Each day BMW is striving to produce and
develop new cars to satisfy the customers. In the long run, who actually knows if these
cars are going to be a big hit.
The company might actually be wasting their time and money in producing a model that
will not be worthwhile. When developing and producing cars it is important to work out
whether or not the car will become one that is popular on the market.
.Hybrid vehicles will save you fuel, but it will be so expensive that it might be hard trying
to find customers to buy them at such a high price.
BMW having created such a high status of their brand they cannot afford to have any
downfalls this will destroy the brand which has developed over the years to be a brand
that ensures customers their receiving quality and perfection for their money.
OPPORTUNITIES
BMW has a great opportunity to increase its profitability by innovation and alliances.
BMW has a great history of alliances such as its purchase of Rolls Royce which don't
only produce the world's finest cars but is also the biggest manufacturer of aeroplane
engines.
A brand driven by businessman in Europe to sheiks in Dubai. BMW is indeed a diverse
brand; this diversity gives BMW the opportunity to sell its cars to people around the
globe making it one of the most famous brands
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.
Positive attitude towards green vehicles. Today consumers are more aware of the
negative effects (air pollution) caused by cars fueled by petrol and diesel. Large
quantities of CO2 emissions intensify greenhouse effect and negatively impact the life on
earth. Thus, consumers are more likely to buy new hybrid and hydrogen fueled cars that
emit less or no CO2 at all.
BMW has an opportunity of developing new products i.e. they release a new line of cars
that can target different markets segments such as the lower class of providing they
luxury of their alliances in their cars giving their customers more then what they ask for.
BMW embarks on a new era of electric mobility. With the BMW i3, the new BMW i
brand presented the first all-electric series-production model from the BMW Group.
Propelled by an electric motor and thus entirely emission-free this vehicle delivers a
completely new driving experience that is compelling for its agility and sheer fun. Never
has sustainability been so electrifying.

THREATS

Chinese car manufactures pose the biggest threat now days to BMW. Chinese car
manufactures are producing cars identical to BMW with far better technology and a lot
lower pricing to their customers.
The rise in fuel prices has a great impact to BMW's performance line of cars, compared
to other performance cars in the same line as BMW, BMW's car are known to be a lot
higher in consumption of fuel.
BMW's competitors are their biggest threat. BMW, Mercedes and Audi have always been
in competition producing similar cars throughout their history, BMW has always been on
the top but in recent years Mercedes and Audi have produced cars with far better design,
technology and cost of running.
The recession has caused car manufactures to cut costs and reduce their labour force this
could lead to a downfall in BMW's quality and sales. The release of new models during
the recession could have a great impact on the huge investments on research and lower
profit margins.
Rising raw material prices. Rising prices for raw metals will lift the costs for auto
manufacturers and result in squeezed profits.
Growing euro exchange rate. BMW earns part of its profits outside the euro zone.
Exchange rate fluctuations threaten BMW profits if the euro will start appreciating
against other currencies.












PORTERS FIVE FORCES ANALYSIS







Threats of new entrants:
Threat of new entrant is dependent on the challenges faces during entry into the industry or entry
barriers. The threat of new entrants in case of automobile industry is less as large capital cost is
required to set up a manufacturing plant and assembly liner. Also it takes time for new entrants
to get a place and the reputation in the minds of the consumers.
There is intense competition in this market and for competing with a company like BMW; any
new firm needs a lot of capital, investment, funding, highly skilled technicians and engineers. It
needs to spend a lot of money on marketing and advertising. Most of the companies dont risk
their business in such a competitive environment and very few take the risk and set up a new
firm. BMW has one of the best technicians, engineering and designers who help in developing
new model cars and more innovative methods.

Threats of substitutes:
BMW has a brand image of being powerful and luxurious. It is positioned in the exclusive car
range where there exist many substitutes for BMW like mercedes, GM and Toyoto. Thus the
threat of substitutes for BMW is high.
It is very tuff for the customers and the market to think about the substitute for BMW, because it
is has a very strong brand image and is known for its reputation in the world. However the threat
of substitutes may come from the manufacture of leading car manufacturing companies and
sports bike companies. The threat may as well 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 BMWs strategic environment and
most of them prefer driving Luxurious cars.

Bargaining power of buyers:
BMW and its competitors are positioned as in exclusive product range. Here the bargaining
power of buyers is high because the consumers can decide the product according to the price
range and buy the products accordingly. Also with environmental issues hovering over the
industry the buyers have the last say with sample substitutes available.
Marketing and advertising are the important aspects to influence and attract customers in this
intense market and a lot of money is spent on these factors. Nowadays the customers depend on
Reviews from magazines, websites etc. These reviews give a lot of information about the cars
and they also compare the same segment cars and this information is widely useful for the
customers and the information about pricing, features and models of the cars play a vital role on
the customers decision of purchasing cars and most of them depend on these reviews. All these
knowledge sources gradually increase the bargaining power of customers. The company designs
attractive catalogues and brochures which attract many customers.

Bargaining power of suppliers:
BMW has good supply chain management system and had long relationship with suppliers. The
bargaining power of suppliers is high in this industry as the suppliers can dedicate the price tag
for the raw materials. Though long time associations with suppliers can prove fruitful, the final
word lies more or less with the suppliers.
Suppliers play a major role in manufacturing the products of the company. The company needs
raw materials, labour, parts and services. The delay in any of these may affect the delivery of the
customers. The cost of supplies affects the profitability of the company and they may also affect
the cost of the products and the distribution of the products. Not all suppliers can have an effect
on the prices. In many parts manufacturers show a lot of interest in supply of the materials to
such a reputed company which provides quality products. BMW is very concerned about the
quality of its products so it is very particular about the suppliers and their costs. The achievement
of BMW also directly influences suppliers profits and their businesses.
Competitive rivalry:
Since the automotive industry has a very 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. However now there is an increasing competition and demand over hybrid
cars since there is a lot of technology development and factors such as increase in the fuel
efficiency and environmental friendly cars are attracting the customers and developing the
automotive market. BMW is developing in the hybrid category, while Toyota is ahead and has a
good share market in this category with its hybrid car PRIUS.

KEY DRIVERS OF CHANGE
From the PESTEL analysis and the five forces analysis, the key drivers of change are:
Huge deployment of infrastructure and manpower concentrated on automobile industry
after the dusk of the second world war
Consumer preferences for product excellence and cost of ownership
Use of design as a chief asset
Technological advancements
Environmental issues
Increase in the implication an brand management rather than product excellence



















PRODUCT LIFE CYCLE


The implications of the five forces analysis varies with the industry life cycle. The elements that
underline the industry life cycle are development stage, growth stage, shake-out stage, maturity
stage and decline stage. During start up the company is the development stage with high
differentiation and innovation as its assets followed by growth stage where the firm experiences
high growth with low bargaining power of buyers and less threat of new entrants. In the shakeout
stage the growth is slower and the key assets for the firm are its managerial and financial
activities. In the maturity stage the growth is almost stagnant with high entry barriers, high
competition but less unit costs and higher market share. Finally in the decline stage the firm is
likely to face extreme rivalry with the rational and emotional approach key for the firm.
BMW was in the maturity stage of the industry life cycle. The growth of BMW was stagnant but
its products like the 1, 3, 5, 7 series having huge market share and brand identity in mature as
well as developing markets. There were high entry barriers in comparison with BMW. But BMW
had considerable market share and reputation for being an engineering excellence, an asset of
BMW in the maturity stage.



CYCLE OF COMPETITION
Cycle of competition underlines the various drifts between competitors with time. BMW, the
German carmaker had a consistent increase in its annual sales and had the technology at its
behest to counter its competitors in the market.
BMWs competitive advantage lies in its integral processes and its designs. The use of scientific
technology that BMW restores to, can be implemented to gaining higher economies of scale. In
terms of competition BMW has Lexus, Mercedes, Toyoto, GM, Volvo group etc. as its rivals in
the automobile industry. BMW has its product range from a MINI to a Rolls Royce. Thus its
product range varies from a luxury segment to a premium segment in the auto industry.
In the cycle of competition any core competencies or competitive advantage is temporary and in
this scenario the closest competitor or BMW is the Toyota group. Toyota group has technology,
production capacity; profit margins and product range that can give BMW run for their money. It
is also a proved product in immature market territory.
Thus BMW can strive in the cycle of competition through its core competencies and competitive
advantage.

CONCLUSION
BMWs business growth is going more and more. Their business strategies and their tactics is the
important key of their success. On the top of that the companys internal customers are very
satisfied with the company. This is very important for every business to being their business in
success. BMW's main Strength is their brand name, high budget, their highly skilled labour and
advertising. Weaknesses are their high pricing to their cars; due to this the competitors can have
an advantage.
BMW has created a high expectation putting them in the spotlight. If one of the products loses its
brand image then the whole group can lose its brand image. They have few Opportunities such as
that they can merge with other international companies and promote their products. They can
enter a new market providing low end cars. BMW's threats are Chinese car manufactures
producing similar cars. Being a company of such high caliber such manufactures should not be a
threat to them and they should be able to ensure their customers of their product.