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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. BMW
should 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).
Opportunity
As 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).
Threat
The 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).
Problem
As 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).
Alternatives
One 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).
