BMW's Globalization Strategy: SWOT, Advantages, and Disadvantages

This essay examines BMW's decision to pursue globalization, highlighting the key drivers such as increased demand in the automobile industry and access to a larger global market. It presents a SWOT analysis, outlining BMW's strengths as a reputable brand known for luxurious vehicles and innovation, weaknesses related to control and scaling in diverse markets, opportunities in emerging markets like India and China, and threats from competition and external environmental factors. Furthermore, the essay discusses the advantages of globalization for BMW, including access to a larger customer base and global talent, as well as the disadvantages, such as difficulties in organizational control, managing diverse political and legal environments, and change management issues. The analysis provides a comprehensive overview of the strategic considerations for BMW's global expansion.

Why BMW go globalisation
There is a huge opportunity for BMW to sell its cars outside Germany. The increase
demand in the automobiles and the growing automobile industry is a key driver for BMW to go
global. With globalization. BMW gets access to large audience group. Without globalization,
BMW would be able to sell its products only in Germany (Dabrowski, 2017). However, with
globalization, BMW has a huge opportunity to target the consumers across the world. There is a
huge opportunity for BMW to target the automobile market in different countries. With the
strategy of globalization, BMW can sell more number of vehicles in the global market, thus
increasing its revenue (Stiglitz, 2017). Therefore, it would be correct to say that revenue and
profitability are also key drivers for BMW to go global.
SWOT ANALYSIS of BMW go globalisation
STRENGTHS
BMW is a reputed brand and it is known to
produce high end luxurious vehicles. There is
already a good market reputation for BMW
and globalization would further help BMW to
strengthen its position in the market. The
focus on innovation and its unique design
powered by safety adds to the strength of
BMW (Lee &Sun, 2017).
WEAKNESSES
Globalization can result in lack of control for
BMW as control would be difficult. The
managers in Germany would not be able to
control the offices in emerging countries like
India. The company would find it difficult to
scale because it is still a niche player in the
market (Candelon, Carare, Hasse & Lu,
2018).
THREATS
The biggest threat for BMW is the threat from
competition. The market for automobile is
OPPORTUNITIES
The biggest opportunity for BMW would be
to tap the growing market in emerging and

large; however, there are number of global
players in the market. There is a bigger threat
to BMW from the other companies like
Toyota, Mercedes, Ford, etc. There also exist
threat from the external environment in
respective market. For example, the
government in some nations may not be as
supportive or the environmental factors can
possess some restrictions (Losonc, 2016).
developing markets like India and China. In
recent times, the emerging markets like India
and China have grown at an exponential
growth rate. Increase in the disposable income
of consumers has the increase the demand of
luxury personal vehicles. There is also an
opportunity for BMW to manufacture the
family cars for middle income consumers in
developing countries.
Advantage and disadvantages of BMW go globalisation
There are various advantages and disadvantages of globalization for BMW. It is
important that the company should take the decision of global expansion by analysing the pros
and cons (Dabrowski, 2017). The key advantages and disadvantages for BMW for globalization
can be discussed as:
Advantages:
 The company would have access to large customer base. It will have an opportunity to
increase sales and improve profitability (Losonc, 2016).
 With globalization, BMW would get access to best resources and talent that it can recruit
across the globe (Lee &Sun, 2017).
Disadvantages:
 It will be difficult to control the organization as organization would become large

 BMW would have to manage the political and legal environment in different countries.
The laws in India are not the same as laws in Germany.
 There would always be an issue of change management as the existing employees of
BMW would resist the change (Milner & Rudra, 2015).

References
Candelon, B., Carare, A., Hasse, J.B. and Lu, J., 2018. Globalization and the New Normal.
Dabrowski, M., 2017. Costs and Benefits of Monetary Sovereignty in the Era of Globalization.
In Beyond Transition(pp. 25-36). Routledge.
Lee, D.W. and Sun, L., 2017. Indirect benefits of financial globalization: Evidence from small
firms’ growth opportunities.
Losonc, A., 2016. Global inequality: A new approach for the age of
globalization. Panoeconomicus, 63(4), p.493.
Milner, H.V. and Rudra, N., 2015. Globalization and the political benefits of the informal
economy. International Studies Review, 17(4), pp.664-669.
Stiglitz, J.E., 2017. The overselling of globalization. Business Economics, 52(3), pp.129-137.