BMW Marketing Fundamentals: Analysis, Evaluation & COVID-19 Impact

This report provides an in-depth analysis of BMW's marketing fundamentals, examining both internal and external factors, with a specific focus on the impact of the COVID-19 pandemic. The external analysis covers political, economic, social, technological, legal, and ecological factors, highlighting challenges and adaptations made by BMW during the crisis. The internal analysis emphasizes the importance of the internal environment and SWOT analysis for strategic decision-making. The report details how BMW addressed issues like supply chain disruptions, employee welfare, and shifting consumer behavior by adopting online operations, flexible policies, and innovative technologies. It also discusses BMW's efforts to support pandemic-prevention measures and maintain customer loyalty during challenging times. The analysis concludes that while BMW faced significant obstacles, its proactive management and strategic adjustments enabled it to navigate the crisis and prepare for future growth.

Marketing Fundamentals
Analysis and Evaluation
BMW

INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Conduct an internal and external analysis on BMW, considering the impact that the COVID-
19 pandemic.................................................................................................................................3
Conclusion ....................................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Marketing fundamentals are those basic qualitative and quantitative information which
helps in business organization to grow its effect in a particular market. This information is based
upon various kinds of aspect which is covered within the product and services that would require
to be sold by this organization. This concept has wider scope as it impacts functioning of an
organization. Scope of these fundamentals are one of the most important perspective which helps
in making organization attain profit and revenue from the product which is required to be sold by
them. The organization that has been taken in this report is BMW which German Multinational
corporate organization and sells luxurious cars. The Organization was founded in the year 1916
it has its headquarters in Munich,Germany. What are the report covers about internal and
external analysis of organization in relation to the covid-19 pandemic other perspective and
relevant theory regarding it.
MAIN BODY
Conduct an internal and external analysis on BMW, considering the impact that the
COVID-19 pandemic
External analysis of BMW:
Business organizations all over the world has faced lot of difficulties during the time of
COVID 19 as they mechanism to circulate goods and services was drastically impacted which
lead upon making organization face heavy loss within their business. Also the COVID pandemic
made government take harsh decisions which drastically impacted organizations growth.
Organization like BMW also got affected due to COVID 19 (Qian, 2020). During the corona
virus pandemic, BMW Group's priority was protection of employees with the adoption of social
responsibility. Also the organization also willing to protect liquidity which makes them achieve
long term success. The impact of COVID-19 pandemic upon the growth of BMW was drastic as
various rules and regulations were made mandatory which created hindrance within its various
operations of the organization. Further, due to lock-down and Work From Home the supply
chain process of the organization become lowered. The consequences of such perspectives
created problem regarding physical operations which made BMW shifted towards online
operations in order to create balance within its profits and revenue generation. It helped BMW

in creating new structure regarding business and which made impact of pandemic controlled
though BMW faced heavy competition from its competitors as they started shifting to online
medium for performing business. Due to corona virus various BMW was forced to shit over
Work From Home which made innovative ideas regarding meetings and task completion to be
outlined. Also the pandemic brought various challenges like employee payment, task
accomplishment and use of technology but these challenges were handled by BMW in very
effective manner. The BMW Group is in favor of pandemic-prevention efforts. The BMW
Group fully supports COVID-19 containment measures and is fulfilling its social responsibilities.
To ensure the mobility of health sector helpers and workers, the company provides automobiles
to social and healthcare facilities. The BMW Group also assists social and public institutions
with donations of goods and resources such as breathing masks and disinfectants at its German
and foreign locations. The organization is currently collaborating with its global supplier
network to quickly purchase the necessary breathing masks and other medical equipment
(Sladoljev and Goleš, 2021). It is also looking at the idea of producing its own medical masks. In
order to understand this impact analysis is done of the external factors over BMW which has
been explained as Political factors: Adapting to carbon emission regulations: These are the
factors that is based upon various forces of politics which are related to legislation and policies
that has been formed by government. It is required to be followed by BMW Group in order to
maintain its sales and profit. In the COVOID 19 period the major focus of BMW is based upon
developing policies which suits work from home process. This group supported 15
manufacturing organizations through its flexible policies making them deal with the negative
affect of BMW. Also its manufacturing polices were changed which made improvement done
within the speed of manufacturing of parts required by the organization. Also the policies of
government made BMW face political instability in a way the customers buying efficiency was
reduced and changed were made within there buying patterns this impacted sales of cars sold by
BMW. The second impact is that investment in the future products reduced making delay within
the launching of cars. These challenging situations made BMW group face difficult time in
coping up with there retail partners that made growth hindered within various markets and
disturbed its customers base. This made BMW offer its customers extension in selling of new
vehicles helping in developing string base from future perspective. Though BMW faced lot of
problems within the time of COVID 19 but due its highly trained management and visionary

leaders BMW was able to make a come back. Also it created more effective structure for making
business to be conducted in future.
Economic factors: A quiet fear of tariffs and currency fluctuations: These are the
factors which is based upon inflation and deflation with import and export rate. Also under the
factor unemployment is covered with profit and revenue generation. Such factor impacts
organization's growth and capacity to generate profit. During the time of COVID BMW's value
decreased by ten percent which made organization face loss in relation to its global business.
Further, the situations emerged during COVID 19 made BMW create economic welfare schemes
for its employees in order to increase there trust upon organizations. In these schemes payment
with health care insurance was introduced making employee develop loyalty towards
organizations. Also BMW faced fluctuations within its profits but due to positive approach
within the market BMW successfully recovered these fluctuations. The pandemic made BMW
form budgetary plans which keep resources surplus for future use and made BMW develop
optimum utilization of resources under its process. During the time of COVID 19 economic
crises took place for big organization but BMW through its economic policies and understating
about pandemic made employees satisfaction achieved which changed organizations employee
credibility. In these hard times the organization was able to serve their employee with proper
salaries and incentives which showed organizations commitment towards its employees and
staff. Social factors: Heavy R&D meets millions of social media followers: These are those
factors which deals mainly with culture, taste and preferences of customers which is required to
be understood by organization for preparing product as per there needs and demands. During the
time of COVID 19 the factor was more effectively understood customers were in direct reach of
organization. In order to achieve this BMW made flexible customer care service which made
organization achieve goals of customer satisfaction. Also it helped in preparing future projects as
per customer aspirations. In the time of COVID 19 BMW spend time in researching about needs
of customers in detail. The factor had positive impact on BMW as it helped in solving the
pending queries of customers which made loyalty of customers maintained effectively that
helped in creating awareness about brand and helped in maintaining its customers base. (Zamfir
and Iordache, 2021).

Technological factors: The newest luxury gadgets: These are those factors that is based latest
development taking place within technology on daily basis. It has helped organizations to
develop their manufacturing and production process which makes organizations stability
increased. Through these factors innovation is brought with revolution in process of BMW. In
the time of COVID 19 the most effective technology used is digital technology that brought ease
within BMW functions. BMW in the time of COVID 19 used digital technology and social
media to reach customers in more effective manner. Also using such platforms BMW changed
its mode of business performance and developed new payment methods. Then BMW through
digital platforms conducted meeting with its management and employees which made
productivity maintained within BMW's working process. Through using digital technology
BMW developed innovative design for its future projects and focused upon making more fuel
efficient cars. This factor made BMW enhance its performance in terms automotive perspective .
In the time of COVID 19 BMW was able to develop positive approach towards its luxurious cars
and provided more comfort within the services. Through digitization BMW was able to develop
portals for online payment which made payment to be done in timely manner. This made BMW
change its ways by introducing better structure for making Work From Home more successful in
nature. The factors has uplifted organizations approach towards its employees making employer
and employee relationship more strong. Through digitizing organizations online process got
improved and customers were able to book models which were to be launched by BMW in
future. Legal factors: The need to abide by hundreds of rules at once: These factors are based
upon various kinds of legislation and acts that has been formed by government. These factors
deal with patents rights which is mostly used in order to protect design with technology used by
BMW. In the time COVID 19 various laws has been formed by government in order to protect
citizens. This created difficulty in functioning of BMW but its was mandatory to be followed by
them. These laws and acts cannot be violated under any condition by BMW as it makes legal
consequences occur for BMW. (Sladoljev and Goleš, 2021). During COVID 19 lot of new rules
has been used enacted by government which made restriction to be followed while like social
distancing, masking, sanitizing and vaccine. All these rules if not followed by BMW has drastic
impact upon its legal stability. Ecological factors: Less CO2 and more hybrid model cars:
These are the factors are based upon developing environment policies and maintain ecological
balance. The factor made BMW shift to electric cars in the time of COVID 19 which made

message to be send in public about environment safety. This idea made BMW develop more
effectiveness within its customer base. Also the factor lead upon making BMW achieve targets
which are based upon environment protection.
The analysis of external factors shows that BMW during the time of COVID 19 has faced
lot of problems in performing its operations which made the organization face loss leading
towards less profit generation. Also it has been covered within the study of certain factors like
political, economic, society, technology, legal and environmental that organization has faced lot
of difficulties in performing its tasks within the period of lock down. Also due to various other
restrictions the full functioning of staff was not allowed.
Internal analysis of BMW
Internal environment of an organization helps in performing various kinds of task which
makes organization achieve its goals at global level. Also the internal environment covers
various perspectives like behavior of employees, working conditions trust and fairness they are
required to be improved which makes business organization progress possible. This environment
should be analyzed on regular basis in order to make better and efficient strategies formed for an
organization. In order to develop better understanding about these factors an organization
performs SWOT analysis. For an organization like BMW the analysis is helpful in making
development of various strategies and takes important decision in relation to new product the
organization is willing to produce. Through such perspective organization is able to capture new
clients, introduce new manufacturing technologies, and whether the firm has the resources to
construct and improve a value chain. This strategy enables us to detect dangers, or variables that
may bring harm to the organization (Soni, 2020). BMW is a well-known brand in the automobile
business. BMW is distinguished by its ability to strike a balance between high quality, style, and
performance. In recent time of COVID 19 pandemic internal factors of an organization like
BMW has faced problems which made internal functioning hinder. During the time of COVDI
19 most of the operations were conducted from home due to lockdown which made supply chain
process slowdown. Also at times employees we not willing to attend meetings or are not
available that made circulation of information impacted drastically. Due to work from home
statistical data was not been submitted that made monthly analysis delayed. The main impact due
to COVID 19 was seen upon Global Supplier Network as it was crashed because of lock down

that created problems for BMW in performing its internal process leading towards reduction in
quality of work. This made BMW face barriers in performing its internal operations which made
organization success hinder. Since the time passed BMW played more focus upon making
policies which makes supplier to redevelop strong network with the help of digital platforms.
This made various models of BMW face quality problems and also employee were not fully
functioning making productivity of work reduced. Also BMW developed its strengths through
online modes which helped BMW in creating strong network which made organization achieve
its goal of creating supply chain method. This leads BMW focused upon creating more
lightweight car through introducing Aluminum Stewardship Initiative which made its internal
process improved and also it created efficiency in its production process. This made BMW
recapture market and making more advent strategies for future. Through improving its car
material BMW also used digital methods for making its employees feel motivated to do the
work.
These strengths were also lost by the organization like BMW since COVID brought
changes within style of doing business by introducing digital means and social media
platform to conduct meetings and discussion regarding BMW’s various process. Also BMW
focused upon energy efficient and non pollution cars making consumer increased demand of
better effective electric cars to be fulfilled. This made the concept of e vehicles more popular
in nature which lead upon making mobility dilutions to be marked out leading upon making
greater demand for greener mobility developed within the global market. This made BMW
makes stability created within the organizational process which made its create stability
within the market upon loopholes that were becoming barriers for BMW. Then BMW faced
difficulties during COVID 19 that made BMW predictable about progress of its organization.
These difficulties were turned into opportunities for BMW as they were able to create scope
for its employees stability. Also BMW made its presence proved through this factors and
created its better image of the organization within market. BMW has faced targets in better
and effective manner making BMW develop more effective internal process.
Future of self-driving vehicles: Demand for autonomous cars is expected to witness a rise
in the coming years owing to increasing government regulations in various developed and

developing nations. BMW can rethink its products, design and business models for the advent of
driverless cars. Also COVID 19 Brought lot of weaknesses for BMW some of them are suits
against emissions: Being on the wrong side of the law is one of the company's fundamental flaws
since it makes it harder for customers to trust it. In the early findings of an antitrust inquiry, the
European Commission charged BMW with collaborating to impede the introduction of clean
emissions technology. BMW was fined $9.6 million in Germany for not conforming to diesel
vehicle emission requirements. Old-model automobile recalls: The recall of cars has a
detrimental impact on the automakers' reputation. To replace Takata front airbag inflators, BMW
recalled almost 357,000 older vehicles in the United States and 1.4 million worldwide. Brand
sales are declining: BMW's essence is its unique ability to create successful new concepts while
remaining true to its legacy(Zamfir and Iordache, 2021). The highlights of 2020 are a 26.4
percent fall in Rolls-Royce sales, a 15.8 percent decline in Mini sales, and a 7.1 percent decline
in BMW sales. In 2020, profit before taxes fell by 26.6 percent. COVDI 19 bough theat in
elation to innovation with new ways of conducting business for BMW which made the
organization be aware towards high competition: This made BMW face problem as its
competitors has increase there sale. In order to deal over these aspects BMW has made
struggling done in relation over competitors. A great and strong organizational culture is
essential for the company in order to develop those attributes which help an organization for its
success. It is a collection of practices, expectations and values which help organization to inform
and guide actions to its members in order to make their performance most effective. When the
organization culture adjusts with the all employees of the organization in order to make feel them
more supported, valued and comfortable (Gupta, 2018). There is different type of organization
are existing for them different organizational culture is needed so, it is important for an
organization to select most effective which help them to make its organization unique and
different from other. Great and effective organizational culture reflects certain specific quality
which is important for the organization such as more align, appreciate all team members, trust
worthy, high performer, teamwork, innovative, integrated and provide psychological safety. In
context of Next plc it make its organizational culture more effective in order to make its better
performances as well as make its employees more satisfied and motivated. By using different
cultural model such as Handy's organizational culture model and BMW' cultural web model,
they can maintain their organizational culture in effective manner. .

Conclusion
From the above discussion can be concluded that, after covid-19 economic crisis as
Orchid which has made plastic impact created over economy of a country. In relation to list
various retail organizations has been implicated in a way that it has caused them use loss as they
have to close their shops in order to save cost. This made their survival very tough within the
physical market and they switch towards online mode of selling. Also can be observed that
Organization in retail sectors have to struggle or 22 covid-19 as its various process were not able
to run in more effective manner. Then in order to develop customer base organization has to shift
to digital technology which help in getting connected to its various customers all over the globe.

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