BMW Group, one of the 10 largest automotive companies in the world today, started as a manufacturer of aircraft engines in World War I and began building a reputation for reliability and excellence on that undertaking. …
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BMW Group, one of the 10 largest automotive companies in the world today, started as a manufacturer of aircraft engines in World War I and began building a reputation for reliability and excellence on that undertaking. Initially known as Bayerische Flugzeug-Werke in 1916,the firm changed its name to Bavarian Motor Works in 1917 as it grew rapidly during the war years. In 1923, BMW put together its first motor vehicle, a motorcycle, followed by its first car in 1928, a version of Austin 7, which was built and commercially sold under license. There was no stopping the company since then. Today, the Group operates in 150 countries through 26 production-assembly plants, 35 subsidiary markets and 12 R&D networks. Its flagship products consist of three automotive brands - BMW, MINI and Rolls Royce. All three vehicles share the same configuration, which suggest luxury, premium class, top-of-the-line quality. This is precisely the corporate culture that animates BMW, which is expressed in its mission statement: "to be the most successful premium manufacturer in the industry." BMW built a solid reputation on this operational strategy.With this kind of philosophy underpinning all BMW's activities, the company produces nothing but premium-class vehicles, which are limited to exclusive sedans and luxury limousines. The side objectives are to set the industry standards for technology, environmental protection and safety, and providing outstanding customer services in the pre- and after-sale phases. These are enshrined in the firm's operations in its 10 R&D facilities worldwide (4 in Munich, 3 in the US and 1 each in Austria, Tokyo and Beijing), 15 production plants (1 in Berlin, 1 in Munich, 4 in UK, and 1 each in China, South Africa, US, Austria and Brazil), 5 assembly plants with local participation (1 each in Indonesia, Russia, Egypt, Malaysia and Thailand), and sales and marketing subsidiaries in 35 countries.
In 2005, the company invested 2,597 million euros to boost its property, plant, equipment and other tangible assets, with emphasis on further expanding its production and sales networks. The amount was 81 percent higher than the 1,396 million euros sunk in the firm in 2004 as capital expenditures. A lion's share of this investment went to the company's R&D network, which has been tasked to come up with the BMW "cars of the future." This is part of an expansion plan that has preoccupied management from the start. In 1994, BMW acquired the Rover Group from British Aerospace in the hope that it could duplicate its earlier success with MINI, which used to be a British-owned firm too. For at least six years, some 1 million Rover vehicles were produced in UK yearly until the company suffered losses reaching $2 million per day as a result of the perceived lack of consumer confidence in the brand and the strengthening of the pound. BMW was then forced to sell Rover to the Ford group in 2000. As for the MINI, BMW hang on to the more successful brand, which is manufactured in its Oxford plant. Market demand for the MINI has never let up, such that at the time BMW was selling Rover, it was pouring in another 50 million euros to increase MINI production.
BMW fosters the core values of technology, quality, performance and exclusivity, such that its activities from R&D to sales are committed to achieving the highest quality for products and services. The overall strategy of the company is first, identify areas with growth potential, understand what they represent, recognize where its strength lies, then make the best of every opportunity by pursuing a clear strategy. These considerations guide BMW's structure and how decisions are made, and from the evidence it works like a charm.
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The Stakeholders of BMW Group 7 3.2. Company’s Impact on Community and Stakeholders 7 3.2.1 Negative Implications of BMW’s Action on Society 8 References 11 1.0 Introduction BMW is a German based automobile company. Since its commencement, the company has manufactured several innovative designs in terms of automobile technology.
The company enjoys favourable brand image among the consumers and the brand has been successful at developing a unique heritage (Simms & Trott, 2006). BMW tends to focus upon ‘light weight construction’. It also utilises Carbon Fibre Reinforced Plastics (CFRP) in automobile production (Ploon & Olesen, 2010).
BMW faced bankruptcy in 1959. But, they managed to lure in Herbert Quandt as its major shareholder. They reengineered their production and distribution strategies completely. They identified a market for very sophisticated saloon cars which will serve as a status symbol for its owners.
Unlike other automakers that often focus on product and pricing, BMW establishes a brand personality that is consistently aligned with target customer standard of living. “The Ultimate Attraction” ad campaign establishes BMW as an important construct and facilitator in the lives of target consumers who maintain high economic resources.
A critical assessment of the Boston Consulting Matrix and its application in BMW. Report on critical assessment on the Boston Matrix and its application in BMW Executive summary The report aims at critically evaluating the branding concept and providing strategic guidelines on how organizations must engage in strategic marketing audit activities.
The luxury car consists of both the practical as well as the conventional luxury cars. The practical luxury cars are characterized for the most part by BMW , Germany , their center of attention is on the customers who are looking for an automobile that will offer them equally the elements of added performance along with a sense of style other than a conventional luxury car .
The third vehicle group is the Rolls Royce, to which is valued as an "Uncompromising concentration on quality is a matter of course. The Rolls-Royce fascinates through unique solutions to detail. These brand images create the high quality and exquisite standards BMW consumer's can take pride in purchasing and owning.