BMW Differentiates Itself - Essay Example

Ways in Which BMW Differentiates Itself Ways in Which BMW Differentiates Itself BMW has faced competition from other giant firms such as General Motors in the automobile market. It has employed various competition strategies to have the added advantage when it comes to market share and customer loyalty. BMW has tried to differentiate itself by producing low carbon emission vehicles that can be accessed at its website. The rising environmental degradation due to pollution from fossil fuels has led to some of the automobile companies to change their engine systems.

Changes have led to electric powered and low carbon-emitting vehicles.BMW is one of the first firms to incorporate the idea in its vehicles in Europe and Asia markets. Its continued research has led to the adoption of efficient dynamics technology. The enhancements have led to the production of vehicles producing less than 140g of carbon dioxide per kilometer. The technology incorporates the interaction of electric motors and combustion engines in the vehicles as a strategy to reduce carbon dioxide emissions.

The differentiation has increased its competitive advantage against rival firms because most customers are cautious about the pollution levels while purchasing vehicles (Mahnken, 2012). BMW has also launched the e0drive model that runs on electricity making it its first vehicle to use green energy. The BMW hydrogen runs purely on hydrogen fuel in an approach to conserving the environment. The differentiation took place in 2004 before most of the rivals had invested in environmental saving techniques in their production of automobiles.

Secondly, BMW has employed latest technological enhancements in its vehicles. It has installed onboard diagnostics systems that can be used to monitor the car’s operational and management modes remotely. The company had a time advantage of installing the technology before most of its rivals. Moreover, the firm has used the knowledge to come up with strong and light vehicles to enhance speed through the use of carbon fiber materials. Technology has also facilitated changes in aerodynamics, transmission and safety of its customers; hence having a competitive advantage.

Thirdly, BMW has integrated human emotions and with the production of its vehicles. Its designs awaken customer emotions and passions through providing the tastes and preferences of the customers. The automobile company has mostly ventured in luxury vehicles. Clients can customize their vehicles through by changing features such as color and physical looks while making their orders. The customer-firm connection is not found in most rival companies; hence the preference for most of the potential clients (Mahnken, 2012).

The customizations have been facilitated by phone and tablet applications where customers can make their changes. Reasons to believe that the differentiations have been successful BMW’s differentiation strategies have been successful enhancing its competition against its rivals. For example, its differentiation in producing luxury, customizable vehicles has had the added advantage since other rivals produce general vehicles. The strategy has also changed its reputation since its establishment in the early 1900.

It has provided its loyal customers with the ability to change their views on BMW vehicles. Despite the competition from rival firms that have invested purely in electric and hydrogen vehicles, BMW’s involvement in producing environmentally friendly vehicles has contributed to its competitive strategy. Its researches began before other firms were established; hence having the advantage in capital and technological accumulations (Mahnken, 2012). Its differentiation in vehicles has assisted to provide a range of vehicles that include preferences by most of its customers.

ReferenceMahnken, T. (2012). Competitive strategies for the 21st century theory, history, and practice. Stanford, Calif.: Stanford University Press.