SWOT Analysis of BMW: Internal Business Environment

This assignment analyzes the internal business environment of BMW, a global automotive company, through a SWOT analysis. It examines the company's strengths, weaknesses, opportunities, and threats, highlighting its brand value, high-quality products, and global presence. The analysis also discusses challenges such as high pricing, limited partnerships, and increasing competition in the automotive industry. The conclusion emphasizes the need for BMW to implement effective business strategies and pricing approaches to address these challenges and maintain its market position.

BUSINESS ENGLISH ACADEMIC SKILLS 1
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Table of content
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
Conclusion:................................................................................................................................4
Reference:..................................................................................................................................5
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Introduction:
Every business organisation needs a proper business framework in order to grow their
business successfully in the selected market. Henceforth, to make the appropriate business
framework an organization has to analyze their business environment and regulators. The
purpose of this assignment is to discuss about the internal business environment of a global
business organization through SWOT analysis. The chosen company is Bayerische Motoren
Werke AG or BMW, an automobile company that produces and sells high powered
motorcycles and cars globally.
Discussion:
BMW is world largest luxury car builder and also 12th largest automaker in the world. The
company sale and produces motorcycles and cars under five different brands, those are
BMW, Mini, Rolls-Royce, Motorrad and Husqvana. The major markets of this automobile
company are Germany, UK, France, China and US ( Bmw.com, 2018). ).
To analyse the internal environment the following part has analysed through (SWOT)
Strength, Weakness, Opportunity and Threats of BMW.
BMW has many strengths being the one of the most famous automotives worldwide. The
brand value of the company is huge. This directly helps the company to maintain its market
share as well as the customer base. Additionally, it enhances the global presence of the
company. On the other hand, the company extends their business throughout the geographical
diversity, which involves in international revenue collection and value exchange. The
company has high reputation about their engine and high quality with high definition design.
The company is also rapidly evolving with their new innovative ideas and application
including alternative fuel car, solar engine, aeronautical engineering etc.
One of the major weaknesses of this company is its price range, which is comparatively very
high within the global automotive market. BMW focuses on multithreaded development,
which means the research and development team always tries to design high engine efficient,
stunning designed, high manoeuvrable cars and motorcycles advanced and luxurious interior.
Therefore, it can be said that the cost of the production very high that influences the pricing
for each model of motorcycles and cars towards high-end range. The company has very few
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partnerships with other companies that keep them limited in terms of potential distribution of
their product (Karvonen et al., 2016).
Growing demand and expanding brand portfolio are essential opportunities of BMW
Company. The growing demand of environment friendly and fuel-efficient vehicles is making
their customer strength larger. The company is trying to reduce its product price by
introducing low cost variants of supreme cars and motorcycles. The social, cultural and
technological globalization is increasing their expansion of brand image.
Multiple threats are acting simultaneously over internal and external regulators of BMW.
From the innovative ideas about alternative fuel engines, more automotives companies are
producing fuel-efficient environment friendly cars with increasing the market competition.
The rising cost of raw materials increases the manufacturing cost as well as inbound logistical
investment (Acri et al., 2016). The unbalanced global economy and political environment are
acting as strong treats involving possible financial breakdown and political chaos that have
huge impact in global expansion and profitability of BMW.
Conclusion:
From the above discussion, it is found that in order to avoid the possible threats and high
competition level, BMW can implement more business strategies and effective pricing
approach. Additionally, the company can also shed much light on the promotional activities
in order to enhance their brand value and customer base of the company.
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Reference:
Acri, A., Offner, G., Nijman, E. and Rejlek, J., 2016. Substructuring of multibody systems for
numerical transfer path analysis in internal combustion engines. Mechanical Systems and
Signal Processing, 79, pp.254-270.
Bmw.com (2018). The international BMW Website | BMW.com. [online] Bmw.com.
Available at: https://www.bmw.com/ [Accessed 7 Mar. 2018].
Karvonen, M., Kapoor, R., Uusitalo, A. and Ojanen, V., 2016. Technology competition in the
internal combustion engine waste heat recovery: a patent landscape analysis. Journal of
Cleaner Production, 112, pp.3735-3743.
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