Even though BMW does a fine job categorizing their products to different target groups, they are limited in the types of vehicles they sell. BMW only sells three types of vehicles. BMWshould venture out and look at opportunities within the pickup truck lines as well as vehicles for lower income consumers. BMW’s current product lines puts them at a disadvantage if the economy was to fall, as their products may be too pricey. The limited types will also limit their potential consumers (Jurevicius, O. 2016).OpportunityAs mentioned above, there is a need for electric vehicles. Consumers are looking for vehicles that will be more environmental friendly. With increase prices in gas, consumers are looking for alternate transportations. BMW has knowledge in making hybrid which much success. BMW could look at developing a larger portfolio around electric cars and gaining and edge in this field (Bayerische Motoren Werke AG SWOT Analysis 2014).There is race in the automotive industry to make an autonomous vehicle. Car manufacturers are working on autonomous cars. Some believe that autonomous vehicles will reduce the number the crashes and accidents. If BMW could create an autonomous vehicle, corporations may help support the trials and even invest (Canellas, M., Haga, R. 2020).ThreatThe United States as well as other countries are looking and pushing the automotive industry to reduce their carbon footprint and alternate fuel efficiency initiatives. Companies are facing new rules and regulations they must be in compliance to continue to sell. Companies have to change their current productions process and part in order to meet these requirements. 6
BMW should assess what potential risk this may give the company as alternate fuel efficiency initiatives may increase production costs (Jurevicius, O. 2016).ProblemAs mentioned earlier, BMW is a global business. As such, BMW reviews multiple country regulations to ensure that they are complaint. Europe is starting to regulate the amount of CO2 emissions that are coming out of vehicles. Europe would like to see automotive industries to transition from the traditional gasoline used vehicles to an electric driven vehicle to reduce emissions in bigger cities. Many automotive companies that sell in Europe; including BMW; are struggling to improve their CO2 emissions before they face penalties Hetzner, C. (2019).AlternativesOne solution option for BMW is to work on selling more of their hybrids to the consumers. BMW will need to sell more of their hybrid lines to stay complaint to EU’s regulations; otherwise, they will face expensive penalties. BMW will need to work on advertisements to display this line. They will need ot review their target audience and sway the groups to look at their hybrid lines (Hetzner, C. 2019).Another solution is to explain all the benefits that their hybrid has to offer. Consumers may not know exactly what a hybrid car has to offer. BMW can highlight the benefits of purchasing a hybrid car and displaying the additional touches they have in place for their hybrids. This may sway consumers to not only purchase hybrids, but to purchase a BMW hybrid(Hetzner, C. 2019).