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leading automobile brands of China. This will help the brand grow its market share in the Asia Pacific market and find faster growth there.Threats: Competitive threats:Competitive pressure in the car industry has grown. There are several car brands in the world which investing aggressively in technology, marketing and driver safety to grow their market share. The growth of Tesla and rising popularity of electric cars is also adding to the growing competitive pressure. However, the size of the car market has also grown. BMW is also experiencing higher competitive pressure which can lead to decline in market share. To combat the competitive threat, leading brands like BMW, Daimler AG, Toyota and Volkswagen among others are entering into strategic partnerships with other car brands to share expertise and find growth together.In the first half of 2019, BMW experienced growth in its market share in its leading four markets – China, USA, UK and Germany. It leads the premium segment in USA. In Germany and UK, as well, the company grew its market share. The automotive industry is experiencing higher competition and despite that BMW has maintained its growth momentum. The company is going to retain its focus on profitability rather than sales volume.Regulatory pressures:Regulatory pressures in the automotive industry have kept growing every year. With growing regulation of the industry, the compliance costs have also grown bigger. Even minor violations
How did BMW Corporation’s Marketing strategy experience for prosperous development like now?23can result in severe fines and the fine can be a large percentage of the brand’s revenue. Volkswagen, one of the leading players had to cough up billions because of trying to evade the emissions laws. BMW remains careful about compliance in all the regions of the world where it operates and has not faced any major legal trouble in recent years. To combat any legal problemsand prevent their occurrence, BMW has established a compliance management system and a compliance code. Its associates are equipped with the tools that help them handle legal risks.Economic fluctuations and market uncertainty:The world economy has grown at a nice rate in the recent years which has led to growth in demand for cars worldwide. Due to higher stability in the global economy, sales performance of BMW cars in various regions of the world was also stable. Apart from a small decline in revenue in 2018, the company’s financial performance over the last five years has remained stable. However, there are some leading economies in the world which account for the largest part of BMW’s revenue. Countries including the U.S., China, UK and Germany account for the larger part of its revenue. As such, the economic performance of these economies matters the most for the company and fluctuation in these economies can have a negative impact on its bottom line.