Business Strategy: In-depth SWOT and PESTLE Analysis of BMW Company

This report provides a detailed SWOT and PESTLE analysis of BMW, a leading automotive company. The SWOT analysis examines BMW's strengths, such as its brand value and engineering, and weaknesses, like limited product differentiation. Opportunities include autonomous vehicles and profitability through innovation, while threats involve increased competition and government regulations. The PESTLE analysis assesses the impact of political factors, including Brexit's effect on operations; economic factors, such as market fluctuations; social factors, including eco-friendly car demand; technological advancements; environmental considerations, like consumer preferences for fuel efficiency; and legal regulations. The report concludes that both analyses help BMW understand its internal and external factors, guiding strategic adjustments for future success. The analysis is crucial for BMW's strategic planning and adaptation to the dynamic automotive market.

Portfolio

Table of Content
• Introduction
• SWOT analysis
• PESTEL analysis
• Conclusion
• References

Introduction
An organisation become successful in a marketplace, if they are aware
or understand factors that exert on their developing firm. Internal and
external factors have a huge impact on success and failure of a
business. Moreover, internal factor bring both positive and negative
impact such as strength and weaknesses where as external factors
affecting outside environment in which a firm have no control over it.

SWOT analysis of BMW
Strength: BMW is one of leading automotive industry in world. It has
various strength to thrive market. Such as:
● Most valuable automotive brands in world wide.
● Perfect engineering and excellent driving experiences

Cont....
Weaknesses: There are some areas where BMW can improve upon.
They are
• It has poor automotive portfolio brand with very less product
differentiation.
• It also increase debt levels

Cont....
Opportunities: These are set of circumstances that help an organisation
to come up with new initiative in product.
• Timings and frequency of BMW's new model create demands for
autonomous vehicles.
• It have a great opportunities to increase profitability by innovation
and alliances.

Cont....
Threats: External strategic factors of BMW that are effected such as:
• BMW increase competition in world wide market with innovation
in product.
• It costs are also increasing with intervention of government
regulation.

PESTLE analysis of BMW
Political Factor: This factor is related to government interferences,
that effect productivity of BMW.
• BMW shut down its British mini plant due leave European union
in April 2016.
• Taxes and duties both by domestic and foreign countries affect its
political success.

Cont....
Economic Factor: It helps in determining current and expected future
of its business. Such as:
• Movement of European market leads to downfall and effected
BMW adversely.
• Purchasing capacity of developing countries attracts more
innovation on product.

Cont....
Social Factors: This factor includes to bring changes according to
lifestyle of demanding customer.
• BMW are eco friendly automotive and harmful emission resistant
cars influences sales, new developments and turnover.
• It also have variation in purchasing power of buyers due to
industry trends that affects sales of BMW.

Cont....
Technological Factors: It affect various external factors on business
to bring alternative with respect to advance technologies capabilities.
• BMW uses more technology in order to raise demand among
customer.
• Technologies not only cut down cost, but enables more
comfortable designs.

Cont....
Environmental Factors: This factor effects survival, operation and
growth of a particular business.
• BMW bring out carnages according to taste and choice of
consumer.
• They are more incline towards eco friendly, more comfort
oriented, fuel efficient cars to make new development.