Detailed SWOT Analysis of BMW Company: A Business Perspective

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of the BMW company. The introduction provides a brief overview of BMW, highlighting its history, brand portfolio (including BMW, Rolls-Royce, and Mini), and financial standing. The main body delves into each component of the SWOT analysis. Strengths include BMW's strong brand value. Weaknesses are identified as a limited market selection and high debt. Opportunities discussed involve the rise in gas prices and advancements in autonomous driving. Threats encompass competition from new brands, particularly Tesla and Google, with competitive pricing and environmentally friendly features. The conclusion summarizes the importance of SWOT analysis in evaluating BMW's internal and external factors. The report concludes with a list of references.

SWOT
ANALYSE
OF
BMW COMPANY

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SWOT analysis of BMW............................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
BMW is a world-famous company in the automotive industry. It is a German
multinational company which was founded in the year 1916, the operation of the company then
was producing the engine of the aircraft. Headquarter of the BMW is Munich Germany. The
brands of the company is BMW, Rolls-Royce and Mini. The net income of the company is
around 7.20 billions euro with the employees of the organization as around 135000 as of
2018(Bassot, 2017).
MAIN BODY
SWOT analysis of BMW
The SWOT analysis is a study in particular which is conducted in order to identify what
are the strengths and weaknesses of the company which are the internal factors of the company.
The SWOT analysis undertake the external factors such as Opportunity and Threat. Here the
SWOT analysis of BMW is taken which is mentioned below:
Strength
It is an internal factor in which the BMW key factor which make the company famous or
better than the competition is considered. Here the factor which is taken is the company's brand
which is with a strong money value, that is the reason that there is almost no advertisement for
the company(Savitch, 2017). The value of the brand is about 40 USD billion dollars. This is the
reason BMW grabs customers all over the world and in UK and EU the brand is as much popular
as Maruti Suzuki in India. With brand as a strength fo the company it can easily drive the other
products to especially brand loyalists.
Weaknesses
Weaknesses is also an internal factor of the BMW in which the weaknesses is taken as
selection made by the company which is small and also market which is compressed. Under the
name of BMW there are three names such as Rolls-Royce, Mini and BMW itself. So the 90% of
the selling of the company is from BMW and rest are just a scratch. So the weakness of the
company is it just focused on the luxurious item and did not focus on the middle class and lower
income section. For the lower and middle class section the company is having almost nothing to
offer(Douglas And et.al., 2015). The another weakness of the company is its debt which was al-
time high in the year 2015.
Opportunity
1

This analysis of the swot analysis considers the external factor in order to do analysis of
BMW UK and EU. The opportunity which the company grabbed is hike in the prices of gas and
also driving autonomous driving which is explained below. Increase in the prices in UK and EU
of gas resulted in increase in the small segment car. Where the BMW took the advantage of
capturing the market. The another factor of opportunity is the autonomous driving in which the
company made the cars technologically sound by adding many technological factors which were
not present in the models of the other brands, this ultimately helped the company in creating its
own innovative and unique product which was very successful and resulted in boosting the sales
of the company and afterwards the other brands also started copying the advance feature witch
were offered by the BMW(De Clercq and Bouckenooghe, 2019).
Threat
Threat is another external factor which takes into account the external factors such as
weather, the economy, shortage of the material in the country, strong factors of employment, the
demand in the market for the product, etc. The threat for the BMW was the other brands entering
with lower prices and more technologically and social friendly. This threat snatched the customer
from the BMW. The other brands which gave a cut-throat competition were Tesla and Google.
The new brands were successfully increasing the sales almost every year. It just happened
because the company was providing the quality products at premium prices, which resulted in
over saturation of the market. AS the government were now more supporting the products which
were having greenhouse gas by providing the companies with that concept high subsidies and
lower taxes, this resulted for the Google and Tesla cars to lower in cost and the BMW was
having high cost as well as the customers of the company were switching to the other
brands(Courtwright, 2019).
CONCLUSION
As per the study it is concluded that SWOT analysis plays a very important role in doing
the analysis of the company because it considers internal as well as external factors. Here the
strength of the BMW discussed here is branding and monitory value. The weakness of the BMW
is small and compressed market which only considers high money income group and not the
small and medium income group. The Opportunity which were included in the study are hike in
the prices of gas and automotive drivers and technological changes and at the last the Threat
2

which the company had was new brands entering the market with competitive price and tech and
environmental friendly features under which the government was providing subsidy.
3

REFERENCES
Bassot, B., 2017. Action without action planning: the potential of the Career Thinking Session in
enabling transformational career learning and development. British Journal of Guidance &
Counselling. pp.1-11.
Courtwright, D.T., 2019. The Age of Addiction: How Bad Habits Became Big Business. Harvard
University Press.
De Clercq, D. and Bouckenooghe, D., 2019. Mitigating the Harmful Effect of Perceived
Organizational Compliance on Trust in Top Management: Buffering Roles of Employees’
Personal Resources. The Journal of psychology. 153(2). pp.187-213.
Douglas, J.A. And et.al., 2015. Understanding student satisfaction and dissatisfaction: an
interpretive study in the UK higher education context.Studies in Higher Education. 40(2).
pp.329-349.
Savitch, W., 2017. Java: An Introduction to Problem Solving and Programming, Student Value
Edition Plus MyProgrammingLab with Pearson eText-Access Card Package. Pearson.
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