BMW's Business Environment: A PESTEL and SWOT Analysis

Desklib provides past papers and solved assignments. This presentation analyzes BMW's business environment using PESTEL and SWOT.

In the context of BMW car
manufacturer
BUSINESS AND BUSINESS
ENVIRONMENT

The presentation will cover
topics:
PESTEL analysis of BMW
SWOT analysis of BMW
Relationship between internal and
external factors
Key findings of PESTEL and SWOT analysis
Influence of internal and external factors
on BMW decision making
References

PESTEL analysis of BMW
 Political factor: Political
factors involve government
policies, trade restrictions,
etc, that may positively as
well as negatively impact
the business of BMW.
 Economic factor:
Reduction of the
government investment
and less borrowing to the
car industry may also
impact the car
manufacturing of the BMW.

Continue…
Social factor: Social trend is changing day-by-
day so the BMW needs to identify needs and
desires of customers of different cultures,
regions and religious and then needs to
manufacture cars accordingly to stay in the
competitive market and maximize profit.
Technological factors: BMW is using cutting-
edge innovative technology in car designing
and manufacturing. It has to use innovative
and developed technology in manufacturing of
cars that will overcome driving errors and
ensure safe driving on roads.

Continue…
Legal factors: BMW needs to follow various
laws related to the employee rights and trade
rights for ensuring smooth operation and
growth of business.
Environmental factor: BMW is focusing to
implement environmental protection laws for
ensuring minimum wastage and emission and
also working on to manufacture fuel efficient
cars using recyclable materials.

SWOT analysis of BMW
Strengths:
 Global brand value and image
 High quality product
 Effective advertising
technology and strategies
 Advanced distribution channel
 Improvement in global sales
Weaknesses
 Limited product range
 Labour union issues

Continue…
Opportunities:
Can explore more options in SUV cars Adopt
affective pricing strategies as compare to
competitors.
Has opportunity to develop business in
developing countries like China, India and Russia
Threats
Huge competition from other competitors such
as Audi, Ferrari, and Aston Martin
Financial instability may causes downfall in sell
of luxury cars

Interrelationships between internal
and external factors
Internal and external factors are closely
interrelated with each other.
BMW needs to analyze the external
environmental factors then needs to develop
business strategies effectively to strengthen the
business position.
External analysis will help in identifying
customer needs and competitors available in the
market.
Manufacturing of cars can be done accordingly
to overcome the threats to business gain
business growth opportunities.

Key findings of PESTEL and SWOT
 As per internal analysis, it has identified that BMW has
good brand value and image in the global market but
its limited product range is reducing its market share.
 It has also threats from other competitors such as
Audi, Ferrari, and Aston Martin.
 It has big opportunities to develop business in
developing countries such as India, China and Russia.
 On the other hand, external analysis has help the
Jaguar to identify economic situation, customer needs
and current technology trend so that it can
manufacture cars accordingly to meet customer needs
and enhance sales and business growth.

Influence of internal and external
factors on Jaguar decision making
 The decision-making team in the Jaguar needs to take
effective decisions related to the use of technology in
designing and manufacturing cars, pricing and
marketing strategies to face competition.
 R&D team needs to conduct market research to
identify customer needs and trending technology and
then production department needs to manufacture
cars accordingly to meet customer needs and face
competition.
 Also decision-making team needs to take decisions
related to manufacturing fuel efficient cars that will
create less environmental pollution.

References
 Lindström, I., 2016. Market Research of the Luxury Car Market in
China.
 Chodakowska, A., 2018. The mobility revolution in the automobile
industry. Electric cars and battery management.
 Elena, K., 2016. Marketing strategy of Jaguar Land Rover in the
Russian market.
 Haladová, I. and Petrovic, F., 2017. PREDICTED DEVELOPMENT OF
THE CITY OF NITRA IN SOUTHWESTERN SLOVAKIA BASED ON
LAND COVER-LAND USE CHANGES AND SOCIO-ECONOMIC
CONDITIONS. Applied Ecology and Environmental
Research, 15(4), pp.987-1008.
 Chen, Y., Wang, Y., Nevo, S., Jin, J., Wang, L. and Chow, W.S., 2014.
IT capability and organizational performance: the roles of
business process agility and environmental factors. European
Journal of Information Systems, 23(3), pp.326-342.