University Assignment: Strategic Management of BMW - Case Study

This case study provides a comprehensive strategic analysis of BMW, a leading German automobile manufacturer. It begins with an introduction to the company, its mission, and vision. The core of the analysis involves internal and external assessments, utilizing SWOT, PESTEL, and Porter's Five Forces models to evaluate BMW's strengths, weaknesses, opportunities, and threats, as well as the external factors influencing its operations and the competitive landscape. The analysis covers competitor rivalry, bargaining power of customers and suppliers, and the threat of new entrants and substitutes. The study also examines BMW's current business strategies at the business, corporate, and generic levels, including product differentiation and market expansion. The document concludes with strategic recommendations for BMW to enhance its competitive advantage, such as market diversification and international manufacturing plant expansion, followed by a conclusion summarizing the key findings and a list of references.

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Strategic Management
BMW Case Study

Table of contentIntroduction
Mission and Vision
Internal and external audit
SWOT analysis
PESTEL analysis
Five force analysis
Current business strategies
Recommendation
Conclusion
References

Introduction
 BMW AG
 German Automobile, engine & motorcycle manufacturing
organizations
 Founded in the year 1916 by Frenz Josef Popp.
 Manufactures motorcycles and automobiles & aircraft
engines (BMW.com 2019).
 Manufacturing plant in Germany, Brazil, India, United
Kingdom and US.
 BMW became the twelfth largest producer of selling motor
cycles in 2015
 No. of employees working in the organization is 134,682 till
2018.

Mission
The mission of BMW is to sell the
different products to their
customers with the highest quality
along with integrity. It is the
leading provider of selling the
different premium products along
with premium services for the
individual type of mobility.On the contrary, the company’s
vision is that it aims in making the
different fascinating driving
experience in a more intense
manner in the future. The current
vision of the company is termed as
FAMILY which is the main way to
Vision

Internal Analysis of BMW - SWOT
 Strength
 Innovative advertising campaigns
 Positioning themselves as the first-class brand and it
resulted in High Top of Mind Awareness.
 Sustained the market position
 Selling of exclusive cars
 Developing hybrid and electric cars

Internal Analysis of BMW - SWOT
 Weakness
 Recalling more than 1.6 million cars
 Less strategic alliances of BMW
Company
 Level of debt of BMW is the highest
 Opportunity
 Increase in the portfolio
 Inclination of customers towards
premium brands
 Market expansion

Internal Analysis of BMW - SWOT
 Threat
 Level of competition
 Audi and Mercedes are the stiff competition for BMW
 Individuals are becoming price conscious.
 Rising problems related to fuel affects demand
 Downfall in the quality and sales due to recession

 Political factors:
 BMW has huge funds, brand image and profits to grow
 Powered with fifteen production companies
 Affect the ability of consumers to change the patterns of buying
directly as there are various concerns in Brazil, Russia and China.
 Economic Factors:
 Have affected the valuation, performance
 Along with profitability of the company
 Difficult to speculate the profit losses in future as the currency is
volatile in nature.
External Analysis of PESTEL

 Social factors:
 Products and services of the company needs to fit with the
demands of the customers appropriately
 BMW has different social media pages and on Facebook
 13 million fans which help the company in investing in
introducing the different kinds of aspects
 Technological Factors:
 Huge competition – needs to develop innovative
capabilities
 Known for the pride as well as mobility of the company
through introduction of hybrid and automotive vehicles
External Analysis of PESTEL

 Legal factors:
 Copyright laws related to the different vehicles
 Obligations related to technological advancements such as
Bluetooth
 changes in the respective laws can bring halt in
performance of Existing and new BMW technologies
 Environmental Factors:
 Customers in prefer to check the health of the planet
 Production and manufacturing of the cars include the
carbon emissions as well as the usage of the fuel by the
cars
 Introduction of hybrid models
External Analysis of PESTEL

Porter’s Five Forces Model Analysis
Competitor rivalry
• High in nature
Bargaining power of customers
• High in nature
Bargaining power of suppliers
• High in nature
Threat of new entrants
• Low in nature
Threat of product substitutes
• High in nature

 Competitor rivalry
 Different competitors : Mercedes Benz and Audi
 Huge advancement in the technological aspects
 Developing hybrid strategy – Toyota is ahead of
them
 Rivalry is very high
 Bargaining power of customers
 High in nature
 Availability of the different substitutes
Porter’s Five Forces Model Analysis