BMW's Comprehensive Strategy for ACES Mobility and Investor Relations

This report analyzes BMW's strategy for entering the Autonomous, Connected, Electric, and Shared (ACES) mobility space. It presents BMW's value proposition, which emphasizes performance, safety, and eco-friendliness, leveraging its existing R&D capabilities. The business model focuses ...Read More

STRATEGY, EMERGING TECHNOLOGY AND INNOVATION
STUDENT DETAILS
STUDENT DETAILS

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Table of Contents
Introduction................................................................................................................................2
Implementation strategy.............................................................................................................3
Value proposition and strategic positioning...........................................................................3
................................................................................................................................................3
Business Model......................................................................................................................4
Potential ecosystem partnerships...........................................................................................4
Competitiveness challenges from the FORD group...................................................................6
Recommendations......................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
The selected organization for this report is the BMW. The first hybrid BMW was the
2010 BMW ActiveHybrid 7, and BMW's first electric car was the BMW i3 city car, which
was released in 2013 (Winton). In this report, a case study is considered. This case study
implies that the company is planning to enter in the ACES (Autonomous, Connected Electric,
Shared) mobility space. The strategy will be created in this report and this strategy formation
will include value proposition and strategic positioning, business model and potential
ecosystem partnership.

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Implementation strategy
This strategy implementation will be drawn from the value proposition and strategic
positioning, business model and potential ecosystem partnership (Aghion, Dechezleprêtre and
Hemous).
Value proposition and strategic positioning
Driven strategy
BMW lies in the segment of Performance and traditional both, this implies that the company
will get more benefit in the market after entering in the ACES mobility space because of their
strong market presence and performance structure. The investors have the opportunity to
incorporate the future technology in the low share prices because BMW's pre-charge benefit
fall to 2.1 billion euros ($2.3 billion) from 2.9 billion ($3.2 billion) in the 2018, while deals
rose 3% to 25.7 billion euros ($28.4 billion). Apart from this, investors should consider that
the group has the electric and hybrid vehicle programs with nascent autonomous programs.
Prius Hybrid
VOLVO BMW
ECO-FRIENDLY
TRADITIONAL
SAFETY PERFORMANCE

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On the other hand, the declining operating profit also implies that the company has lower
autonomous, connected and shares competencies (Winton).
Investor should focus on two main points that currently BMW group have the high operating
profit in the market as compare to their competitors (FORD, Jaguar, Mercedes, etc) and they
large research and development (R&D). Thus, with the help of the R&D and investor’s
support, the group can create the effective mobility space. The large fund of the investor will
enable the R&D employees to conduct the hit & trail process with the success rate of 60%. It
means the fund that will issue by the investors will help the R&D centres to conduct the
process with fail attempts in order to create a successful mobility space.
Now, this question may arise in the investor’s mind that why they will investor in the fail
attempts with 60% success rate.
Answer to this question is that investor should change their perspective and they should
think that the BMW group already have the vast knowledge on the efficient AI car programs.
Investors should think that they are investing their money in the BMW group’s market share
and in the great AI knowledge of the R&D department of the group.
The driven strategy is that the company should take benefit from its existing research and
development centers for implementing the ACES system They can also put this view in front
of the stakeholders and investors that they will be going to utilize their own research and
development department. The company can also make to generate electric charging centers
so that they will be benefited in the two ways. First, they will incorporate the profits from the
ACES technology, secondly, they will drive the profits from the electric pumps (Altmann,
Kohler and Meil).

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Business Model
The technology advancement such as ACES will result in positive driven technology form.
Through their business model, they can form the strategy to advertise the autonomous driving
technology with immediate efforts. This strategy also incorporates vertical integration. Apart
from this, the management of the company should focus on the horizontal network with more
integrate and interdependent collaboration. This will be marked as the best strategy for them
to implement the ACES structure. The BMW is the most aspirational brand among the
customers thus they can implement and should marketing the ACES mobility space from the
beginning. In this way, they will grow the desire and expectations among the customers, at
the time when the company will accomplish their goal to ACES mobility space then they
customer will try to experience the technology, in this way they management can incorporate
the future technology modes (Cano). Driven strategy from the viewpoint of the Business
model is that investors need to incorporate that current business model of the company is
moving towards the AI incorporation cars. In the long run, their investments will be rose to
120 to 150% because AI or self-driven or ACES mobility space are the future of automobiles.
Potential ecosystem partnerships
Potential ecosystem partnerships incorporate two kinds of ecosystem partnerships from the
perspective of the BMW. The benefits of the potential ecosystem partnership will succour the
management informing the strategies for effective and efficient implementation:
Sales and marketing partners:
 System integrators: For launching the ACES technology the company has to
incorporate the norms of the system integrators marketing. This marketing system will
help the management in analyzing the audience which will like to experience ACES
technology (Dodgson).

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 OEM partners: OEM partners displays the proprietary solutions that include the
"white-labeling". This will help the management in incorporating the various other
marketing norms (Lechtenböhmer).
Technology partners
 Third-party application developers: These application developers provide various
plug-inn and add-ons that related to the company’s automobile developers. Apart
from this, the major technology and collaboration partner of the BMW are Peiker
and Nash technologies.
 Verticalization specialists:
Verticalization specialists enable BMW management to utilizes the specific
ecosystem norms. The company can also utilize the verticalization specialists in
the implement of ACES because of this specialists forces on the customizing
software platforms for building the specific solution (Altmann, Kohler and Meil).

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Competitiveness challenges from the FORD group
The FORD group is the competitor of the group. FORD group operates in the market
through their strength points such as global supply chain, large budget spending on the R&D
departments, mass-market segments, intellectual properties and their value proposition
methods. This group also focuses on future growth strategies such as autonomous driven
technology methods. Ford group also has the strong R&D departments and FORD group is
the strong competitor of the BMW. Now, investors may think that they can invest their funds
in the FORD group too but they should change their perspective because R&D department of
the BMW is moving towards the implications of the Artificial Intelligence (AI) and Machine
Learning (ML). Ford group is not implying on the AI and ML process in their ACES
(Aghion, Dechezleprêtre and Hemous).
Recommendations – These two recommendations are obtained from the point of view of
ACES mobility space structure:
 Artificial Intelligence: The management can make a much more effective ACES
mobility space structure. AI will enable the autonomous driving and voice process in
the ACES of the BMW (Winton).
 Enhance customer experience with in-build wi-fi offering: The group can also
incorporate the in-build Wi-Fi function to enhance the customer experience.

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Conclusion
It is concluded that the group should implement the norms of the AI and Machine
Learning (ML) in their ACES structure because it will enhance the customer experience and
it will also make the effective adjustment in the ACES structure. Apart from this, the
company has a strong market presence this will help the management in establishing the
norms of the effective ACES structure.

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References
Aghion, Philippe, et al. “Carbon taxes, path dependency, and directed technical change:
Evidence from the auto industry.” Journal of Political Economy 124.1 (2016): 1-51.
Altmann, Norbert, Christoph Kohler and Pamela Meil. Technology and work in German
industry. Abingdon: Routledge, 2017.
Cano, Zachary. “Batteries and fuel cells for emerging electric vehicle markets.” Nature
Energy 3.4 (2018): 279-289.
Dodgson, Mark. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Abingdon: Routledge, 2018.
Lechtenböhmer, Stefan. “Decarbonising the energy intensive basic materials industry through
electrification–Implications for future EU electricity demand.” Energy 1 (2016):
1623-1631.
Winton, Neil. “BMW Profits Drop As Expected And Share Price Advances.” 1 8 2019.
www.forbes.com. 23 12 2019.
<https://www.forbes.com/sites/neilwinton/2019/08/01/bmw-profits-drop-as-expected-
and-share-price-advances/#6440f2cf2c10>.