BMW – the Bavarian based luxury car producer is seen as one of the most prestigious, stable and admired companies in the world. By 2008 the company sold 1.2 million automobiles under its largest brand – the BMW. In 2001 it very successfully launched the new Mini which is the only brand kept after the failed acquisition of the Rover group with sales rising to over 230 thousand in 2008. In 2003 Rolls Royce was added to BMW’s portfolio and sold 1,212 units in 2008 – an increase of 53% compared to 2004 (BMW Annual Report 2008, pp6-7). The company has not only one of the strongest brands worldwide and exclusively high profit margins of 8 – 10% but since 2007 it has been the world's top seller in the premium class (Hawranek, 2008).
In the last 50 years BMW has built a powerful brand image and distinctive competitive advantage. However, with rising fuel prices and climate change BMW will have to work hard to develop an environmentally-friendly car that still supports the values that the company has been standing for.
Despite the fact that recent recession has hit hard the luxury market BMW considers itself in fundamentally good shape as it began preparing for a downturn in early 2008 (Ewing, 2009). However, there are no reliable predictions on how long the crises will last and how the automobile industry will develop in the future but the direction BMW has to work to is certainly clear – to a greener, more environmentally-friendly Beemer.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- AUTOMOBILES MARKET IN THE 2000S
- GENERAL OVERVIEW
- ENVIRONMENTAL ANALYSIS
- Ecological environment
- Economics
- Political and legal issues
- Technological development
- Social development
- COMPETITIVE FORCES IN AUTOMOBILE INDUSTRY
- The threat of potential entrants
- The threat of substitutes
- The power of buyers
- The power of suppliers
- The extent of rivalry between competitors
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This text aims to analyze the competitive environment of the automobile industry in the early 2000s, focusing on the luxury car segment and the case of BMW. The work explores the main trends and challenges within the market, examining the external environment as well as the competitive forces at play.
- The impact of global economic and technological developments on the automobile industry
- The importance of brand building and customer loyalty in the luxury car segment
- The role of competition and cooperation among car manufacturers
- The analysis of various environmental factors using the PESTEL framework
- The application of Porter's Five Forces framework to understand the competitive landscape
Zusammenfassung der Kapitel (Chapter Summaries)
- INTRODUCTION: Introduces the BMW company and its position in the global automotive market.
- AUTOMOBILES MARKET IN THE 2000S:
- GENERAL OVERVIEW: Provides a general overview of the car industry, highlighting its maturity, competition, and dynamism. Discusses trends such as consolidation, increased cooperation, and rising quality and technology.
- ENVIRONMENTAL ANALYSIS: Examines the broader environmental factors impacting the car industry using the PESTEL framework. Addresses ecological concerns, economic fluctuations, political and legal issues, technological advancements, and social developments.
- COMPETITIVE FORCES IN AUTOMOBILE INDUSTRY: Analyzes the competitive forces in the car industry using Porter's Five Forces framework. Examines the threat of potential entrants, the threat of substitutes, the power of buyers, the power of suppliers, and the extent of rivalry between competitors.
Schlüsselwörter (Keywords)
The key topics and concepts explored in this text include: automobile industry, luxury car segment, BMW, competitive environment, PESTEL framework, Porter's Five Forces, globalization, economic trends, technological advancements, brand building, customer loyalty, competition, cooperation, and strategic alliances.
- Quote paper
- Linda Vuskane (Author), 2010, BMW Business Strategy - An Overview, Munich, GRIN Verlag, https://www.grin.com/document/154650
