BMW's Business Essentials at the Nurburgring

The assignment content discusses the recent changes in upcoming BMW models and concludes that the company uses various business aspects such as HRM, marketing, brand value, pricing, and supply chain to compete with other companies. Additionally, it highlights several competitive advantages, including status representation and achievement, research and development, agonistic post-sales work, effective designing, and adding new features. The corporation can also leverage artificial intelligence, new materials, autonomous driving, etc., to differentiate itself from competitors.

BUSINESS
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASKS.............................................................................................................................................3
Major competitors of BMW.........................................................................................................3
Positioning of organisation and its competitive advantages........................................................4
Aspects of the organisation..........................................................................................................5
Other aspects which makes the organisation different ...............................................................7
Recently changes in the organisation...........................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business essentials can simply have defined as those commodities that are required by a
business in order to increase their turn over per annum (Wilson, 2014). Some of the business
essentials are the clients, raw materials, manufacturing strategies, the facilities of transportation,
supplying methodologies of goods, etc. The present report is based on BMW which perform their
operations in automotive industry. In this context, report explaining the major competitors of
BMW. Additionally, how the organisation is positioning itself to gain or maintain the
competitive advantages is explained. The various strategies of business like supply chain,
pricing, the value of brand, marketing, HR, etc. are discussed in this report.
TASKS
Major competitors of BMW
Bayerische Motoren Werke AG commonly known as BMW is a Germany based auto
mobile company which deals with manufacturing luxurious vehicle, motorcycle, car, and engine
(Woiceshyn, 2011). It was founded in the year of 1916. It is most recognizable brand of selling
best luxury auto mobiles in all over the world. The major competitors of the corporation are
Mercedes, Lexus, Acura and Audi answer Daimler Chrysler's Mercedes Benz.
(Figure: Automobile manufacturer market share, 2017)
Illustration 1: Automobile manufacturer market share, 2017

Positioning of organisation and its competitive advantages
The competitive advantage can be defined as the best performance of the particular
enterprise in examination to their competitors in the same area or industry. It is also known as
giving the better performance or manufacturing of best quality products in relation to other
corporations. An enterprise can gain competitive advantage by adopting some approaches such
as cost leadership and differentiation. The former is nothing but the offering of lower price
products of a company than their other competitors. The second type can be achieved when the
company focuses on manufacturing those products that the consumers demands in higher value
than the other companies producing the same. But the corporation are charging more on those
products.
BMW can be good example of having the differentiation advantage. The venture
produces new and innovative products and make their product development specific and
different from other's products. The enterprise makes a new theme by recognizing their
marketing strategies, slogan and improvement in the product and named it the Ultimate Driving
Machine. The business strategies used by the firm can be characterized as differentiation of
product by giving the main focus on the designing and the digitization. The latest or new
direction of BMW Group in the area of its product differentiation is the Electro mobility. The
company had introduced a completely electric model which is known as BMW i3 in the year of
2103 (Sherry and Canon, 2014). While it launches another product in the market next year i.e.
2014 whose name is Plug- in hybrid auto mobile BMW i8. The competitive advantage of
company is based on the below list points:
 Status Representation and achievement: This corporation relates to the categories of
the premium car. So as per that the company deals with development of luxurious
vehicles having the totally different features than other ordinary vehicles (Simon, 2011.).
This makes the good reputation or status of corporation. The symbol of achievement and
the gain in social status can be achieved by taking the control over BMW model vehicles.
 Effective designing and adding new features: The enterprise used to do modification
in the existing design and made it unique in relation to others. These included the
rounded radiator grille, fascinating aesthetics, polished styling, etc. (Samli, 2011). The
new features are added so that the consumers receive extra qualities or characteristics of
the car and bikes. This effectively aids in getting the competitive benefits.

 Agonistic post-sales work: The BMW provides the services that are not offered their
competitors and hence receives a positive commendation from the customer’s side. The
company concentrates on the customer’s service to fulfil the demand of the users. So the
product of this corporation is greatly demanded by the society of the UK.
 Research and development (R&D): It plays an intrinsic role in making the sustainable
competitive advantages and due to this it becomes recognizable by other senior
management. The investment of R&D has been enhanced by EUR 136 million to EUR
4.2 billion (Masiyev and et. al., 2012). The competitive advantages of BMW now create
challenges to sustaining the long term appearance as this depends on the power of
organization to present innovative goods or car models, characteristics and its abilities on
a regular basis.
 Revolutionary product design: The products should be designed in such a way so that
the designing shows some revolutionary features, the trend setting is done and the styling
of the quotient should be kept high. So that the right cording of the consumers is
received.
Aspects of the organisation
The different aspects used by BMW in order to increase the turnover in such a conditions
where there are different competitors which are presenting the same. Some of the strategies
applied by the organisation are listed below:
 Supply chain: The corporation effectively manages the flowing of goods and services. It
involves the transferring as well as storing of raw materials, the inventory of work which
is in process and the completely manufactured goods from one point to another that is
from the work location to the door of consumers. The united networks, channels and the
knob of the business reaper in the stipulation of the artefacts and services which is needed
by the end users. The timely transferring of the contracts to the users is seen as a positive
sign for the company. And this makes the bonding between the corporation and the
clients stronger by proving the enterprise loyal in the eyes of the population of nation.
The venture has built its showrooms at different places so that consumers can easily
purchase their desired cars or bikes without making more efforts in searching the good
one.

 Pricing: No doubt the pricing of the product of this firm is so high because their brand is
most recognizable in all over the world. The BMW as offers unique and additional
features in comparison to other companies so it is but obvious they will provide vehicles
at some higher prices (Hair, 2015). In comparison to the high costing they achieve good
turnover per year and receives better responses from their clients.
 Brand values: The enterprise as provided the best quality product with ultimate
technology of electro-mobility raises its value in all over the globe and as a result the
brand value increases drastically. Most of the clients that fall into the group of rich
society prefers their auto mobiles because to spend such amount of money is a simple
task for them or they can easily afford such cars or motorbikes (Lones, 2011). The
company establishes its business in almost all the nations so they are known by most of
the population of the world. As a result, the purchasing ratio is increases and their brand
becomes the most popular among all the companies that are offering the auto mobiles.
 Marketing: The enterprise uses the best marketing policies like selling, advertising,
performing customer care services, etc. It invests most of its revenues in the process
advertising. The mass media, journals, posters, television channels, etc. are used by the
company to make their new innovations familiar among the civilians of the country. The
selling is also done effectively so that the profitability of the corporation enhances and
the BMW contribute in the corporate social activities like giving employment to the local
peoples, educating the poor kids, making the environment balanced or pollution free by
using the liquid petroleum gas instead of petrol.
 HR: The firm involves or take help of the Human Resource Management in maintaining
the quality of the auto mobiles. The work of the HR is to hire the talent employees that
have the skill which is needed by the required post within the firm. The hire those
employees that have effective communication skills and know at least three or four
languages so that they can deal with different nations clients. They manage most of their
sells with the help of phone calls only. So having a good communication skill is one of
the basic requirement. The employees should be comfortable in doing 24*8 hours’
physical job and so on. The other tasks of the HRM is to train and educate the new
comers of the corporation as they do not know the daily working of the system.

Other aspects which makes the organisation different
Some of the other aspects that can be used the BMW in making a different status are
following:
 Autonomous Driving: The automotive driving ought to be introduced in the corporation
has it is the greatest trend then there is no questions exists like if, but, or when. The
drivers of the organisation can be take the cars or bikes to do the work but only when
wanted by them.
 Artificial intelligence: The trends of artificial intelligence can also be used by the firm in
totally connecting the vehicles from the digital technologies in the future. It makes the
vehicles so normal that penetrate in approx all the sector of the social lives. As the
digitization is increases the more and more physical as well as digital worlds merges. The
core working can be easily delegated by the introduction of artificial intelligence and
there is less need of physical labours (Applegate, L.M. and et. al., 2011). The interaction
of the human with the technology made transformation in the field of auto-mobiles. The
functioning of the cars might be made totally new by adding the touch screen features
and automatic starting. The less consumption of the oils can be used in the upcoming
models of the vehicles.
 New materials: The corporation can manufacture the cars by adding or using the new
materials like modified engines that may consume less fuels, the speed of the vehicles
should be increased on the basis of hours. The modern engineering will introduce the 4D
printing as well as rapid manufacture processing (Guffey and Loewy, 2012). This will not
only aids in the production but also gives the outcomes that are more intelligent
consisting of networked materials. It also replaced the conventional or historical tools
that are being used continuously from last few years.

Recently changes in the organisation
In the present time there are many changes in the BMW. BMW is provided for the
satisfaction of customers desires. Recently there are 300 to 400 cars in company stock and now it
takes the more time to deliver the car (Anderson and et. al., 2017). Every people want to take
nine signatures on the financial document of BMW. The customers can achieve the BMW in the
45 minutes and it is the better services for the customers. Currently, BMW has 20 million
customers contacts who wants to take car for the financial services of the product. According to
the BMW there has the fine tuning and synchronising driver assistance systems like, traction
control and stability control. In the 2017 BMW launching the 6 series GT models for the high
class family. There has longer rear doors and new glass house with rear quarter windows in
BMW. The X5 is expected by the luxury buyer because they are capable for purchasing the
BMW x5. In the present time there are many changes in the X5 because any kind of buyers want
to certain changes in the functions of cars (Four and Five, 2015). In the upcoming year, the
BMW will launch the X3 M with the 425bhp and it will also launch the BMW X3 M F97 at the
nurburgring. So, there all are the recent changes in the upcoming models of BMW.
CONCLUSION
From the above based report, it has been concluded that the business essentials are
something that are required by the enterprise to run effectively. The BMW uses the different
business aspects like HRM, marketing, brand value, pricing and supply chain in order to compete
with the other companies who are offering the same product. It also uses the several competitive
advantages like Status Representation and achievement, Research and development, Agonistic
post-sales work, Effective designing and adding new features, etc. so that they can be at the top
of the market. The corporation can also use other business aspects like artificial intelligence, new
materials, autonomous driving, etc. in order to make the organisation different in relation to their
competitors.

REFERENCES
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Online
Analysis of BMW competitors. 2017. [Online]. Available
through<https://lawaspect.com/analysis-bmws-competitors/>. [Accessed on 1st July
2017].