Company Report on BMW: Industry Analysis and Performance

This report offers a comprehensive analysis of BMW's business operations within the automotive industry. It begins with an overview of the automotive sector, followed by an introduction to BMW, highlighting its innovative products and luxury car production. The report explores BMW's strengths, including strategic management focused on customer satisfaction and excellent customer service, which contribute to customer retention and brand loyalty. It also addresses criticisms, such as the lack of an electric vehicle strategy and poor results in the first quarter of 2019. The conclusion summarizes BMW's strengths and weaknesses and provides recommendations for future strategies, emphasizing the need for cost-cutting, improved research and development, enhanced supply chain management, and a focus on innovative and environmentally friendly products to maintain its position in the competitive automotive market. The report references several academic sources to support its findings.

Running head: COMPANY REPORT ON BMW
Company report on BMW

1
COMPANY REPORT ON BMW
Table of Contents
1. Introduction to the automotive industry..........................................................................3
2. Introduction to BMW......................................................................................................3
2.1 One aspect BMW excels at........................................................................................4
2.2 Another aspect BMW excels at.................................................................................5
2.3 One aspect BMW is criticized for.............................................................................5
3. Conclusion & recommendations......................................................................................6
Reference List......................................................................................................................7

2
COMPANY REPORT ON BMW
Executive Summary
The main aim of the report is to understand the Business function of BMW in a broad way.
BMW is one of the major automobile industry in the world and it excels at producing innovative
and luxury cars. In the starting of the report a brief description to the automobile industry has
been given and then a descriptive introduction to the company has been provided. BMW has
been successful in the automobile industry owing to a lot reasons. In this report two aspects in
which the company excels has been presented along with one aspect in which the company has
been criticized has also been presented. In the end a conclusion has been drawn on the report
along with some recommendations for the company has also been presented.

3
COMPANY REPORT ON BMW
1. Introduction to the automotive industry
The automotive industry is a huge industry which comprises of a lot of companies and
various organizations which are involved in designing, manufacturing, developing, dealing and
marketing of various motor vehicles (Law, 2017). In accordance to revenue automobile sector is
one of the largest economic sector in the world. The industry which is dedicated for the
maintenance of the automobiles including their delivery and repair do not come under the
automobile industry. With the huge increase in the population around the world a lot of
companies are emerging in the automobile sector which are producing more and more vehicles to
meet the demands of the public. The automobile industry is also bringing a lot of changes in its
products. A lot of problems regarding the climate change is being observed in the world which is
mainly due to the huge carbon emissions from the vehicles and industries. Automobile industry
has been coming up with various ways by the help of which they will be able to cut off the
pollution. Vehicles using electric energy has been introduced in the world which are a major
game changer in the modern era and the various ways by the help of which the carbon emissions
can be reduced has been brought in the automobile industry.
2. Introduction to BMW
BMW is one of the finest motor manufacturers of motor vehicles all around the world
and is a major company which excels in bringing innovation sin its new products. The
headquarter of BMW is situated in Munich, Germany (Papasolomou and Kitchen, 2011). The
products which are manufactured by BMW includes motorbike, cars and various appliances. The
main slogan of the company in English is “The ultimate driving machine and sheer driving
pleasure” (Atwal and Williams, 2017). The company produces and sells a variety of cars and
motorcycles. The company also owns Rolls-Royce and is mainly known for the production of

4
COMPANY REPORT ON BMW
performance oriented and luxury vehicles. The company has a significant history in the
automobile industry which has significance in touring cars, formula 1, Isle of Man TT and also
sports cars (Atwal and Williams, 2017). The name BMW stands for Bayerische Motoren Werke
and is major German company of the company. BMW has a lot of branches all around the world
mainly in Germany, China, South Africa, Brazil, India, Mexico, United Kingdom and Unites
States of America (Gosline, Lee and Urban, 2017). BMW is the twelfth largest producers of
vehicles all around the world. The future plans of BMW shows that the company has been
looking forward to being a lot of innovation in its company structures and the products which
will be produced by them (Gosline, Lee and Urban, 2017). The company has produced a lot of
products in different ranges in the past and will be continuing to do so. The main competitor of
BMW is Audi and both the companies has been in competition with each other form a long time
and the products which are produced by which the companies are fairly same. Both the
companies are working towards innovating their products which is looking forward for working
towards the betterment of the environment (Gosline, Lee and Urban, 2017).
2.1 One aspect BMW excels at
BMW excels in strategic management in which the company focusses on customers’
satisfaction and customer retention. The Price of BMW is slightly more than the Honda But the
slight high price gives the customers the option to have the luxury and the prestige which is
obtained by the owning of BMW (Moiseieva, 2013). For instance it can be seen that the products
which are produced and sold by BMW in Japan is mainly to attract young individuals by keeping
the price of the vehicles in entry level (Moiseieva, 2013). This is a major aspect in which BMW
excels at in which they can correctly assess the condition of the market in a proper way and make

5
COMPANY REPORT ON BMW
their products in accordance to the market (Hwee, 2015). The brand name of BMW helps them
in getting customers easily in all corners of the world.
2.2 Another aspect BMW excels at
The response which the company gives to its customers have been excellent and people
have highly appreciated the customer experience of the company. The customers are treated in a
very proper way buy the company which gives them the opportunity to retain the old customers
and also gather new customers for the company (Wilden and Gudergan, 2015). Customers must
be treated by any company in a proper way so they will be recommending the company to others
and the company also gets new customers form all around the world. The main reason due to
which the customers are attracted to the company is because of the global branding of the
company. Along with its brand name the excellent customer service provided by the company
helps the company in gathering more customers for the company (Wilden and Gudergan, 2015).
This is one of the major aspect in which the company excels at.
2.3 One aspect BMW is criticized for
Recently BMW has been criticized for poor results in the first quarter of 2019 and the
company also lacks electrical vehicles strategy at present. The company has been accused of not
planning ahead of its time and also is not able to provide environment friendly customers with
the devices which is being needed by them. BMW is not working in accordance to the present
marketing conditions in which products which are environment friendly is needed more by the
customers. Owing to the problems which is being faced by the world due to pollution and
climate changes needs to be paid attention by the company (Kingsnorth, 2019). Companies all
around the world must be looking at the environment along with their profits. BMW has been
critics in the first quarter of the 2019 since they are not giving attention to the production of

6
COMPANY REPORT ON BMW
environment friendly in the modern world (Kingsnorth, 2019). This might be major problem for
the company as they can lose some of its customers to its competitors which is highly affecting
the revenue of the company (Urban, Gosline and Lee, 2017).
3. Conclusion & recommendations
To conclude it can be said that BMW is one of the major automobile company in the
world and it works towards introducing more new products to the world. Owing to the reputation
of the company along with the quality product which is being provided by the company to its
customers the company has solidified its position in the automobile industry. The customers of
BMW has praised the company over the years about the services which has been provided by the
company. This is a very important strategy by the company which has helped it to maintain its
position in the world of automobile industry.
The future strategies for the company must be aimed at improving the profits of the
company by cutting the costs of manufacturing of its various products. The company needs to
improve its research and development teams (Reuter, 2018). The company needs to look at its
supply chain management which will be ensuring better revenue of the company. The main aim
of the company in the future must be to improve innovative and environment friendly products
(Reuter, 2018).

7
COMPANY REPORT ON BMW
Reference List
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!.
In Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.
Bastien, V. and Kapferer, J.N., 2013. More on Luxury anti-laws of Marketing. In Luxury
marketing (pp. 19-34). Gabler Verlag, Wiesbaden. (Bastien and Kapferer, 2013)
Gosline, R.R., Lee, J. and Urban, G., 2017. The power of consumer stories in digital marketing.
Brighton, MA.
Hwee, E.Q.C., 2015. Building & Sustaining Strategy: Bayerische Motoren Werke (BMW)–
Automotive Industry.
Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online marketing.
Kogan Page Publishers.
Law, C.M., 2017. Restructuring the global automobile industry. Routledge.
Moiseieva, M., 2013. Mini Cooper: Marketing Strategy, Digital Marketing, Brand &
Ethics. CRIS-Bulletin of the Centre for Research and Interdisciplinary Study, 2013(1), pp.93-
113.
Papasolomou, I. and Kitchen, P.J., 2011. Cause related marketing: Developing a tripartite
approach with BMW. Corporate Reputation Review, 14(1), pp.63-75.
Reuter, C., 2018. Définition de la nouvelle stratégie marketing événementielle et expérientielle
de BMW Group Belux.

8
COMPANY REPORT ON BMW
Siahaan, A.P.U., 2017. Marketing Strategy through Markov Optimization to Predict Sales on
Specific Periods.
Urban, G.L., Gosline, R. and Lee, J., 2017. The power of consumer stories in digital
marketing. MIT Sloan Management Review, 58(4).
Wilden, R. and Gudergan, S.P., 2015. The impact of dynamic capabilities on operational
marketing and technological capabilities: investigating the role of environmental
turbulence. Journal of the Academy of Marketing Science, 43(2), pp.181-199.