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Perfect technology and excellent performance bring to consumer good driving experienceBMW’s top priority is on the luxury car segment with traditional competitors such as Mercedes-Benz, Lexus and Audi. BWM always promote and equip its cars with the most moderntechnologies, high-end luxury and exceptional comfort and performance, driven by the Germany quality.Competence in hybrid and electric carsThe first electric vehicle of BWM i3 that using Li-ion battery and gasoline as option was introduced to market and consumer in 2013 as a part of BWM electric vehicle sub-brand. After launching i3 to market; BMW i3 had become the 3rd best-selling electric vehicle in the world. In2014, BMW present a new i8 plug-in hybrid sport car a part of its electric feet “Project i” with electric motor reaching 131HP, venturing into plug-in hybrid vehicles (PHV) market. BWM i8 can speed up from 0 to 100km only within 4.4 second and from launching time Middle-2014 to early Nov 2016; BMW i8 was sold out 10,000pcs making it 8thof world’s top selling on plug-in hybrid sport car. And the top selling market of BMW i8 was in U.S, U.K, Germany; China and Canada.
BMW Case Study15BMW have strong competence in making hybrid and electric vehicles is stronger than most of its competitors just after Toyota. Clear strategy to overcome the future challenges and catch future trendsBMW top management always issue clear business strategy as the direction for all company operation on how to overcome challenges that it can cope with in future. For example strategy plan “Strategy Number One” provides clear directions and goals of what the company should pursue. And BMW’s vision we are number one. About the competitive advantage; BMW commit: (1) Offer the consumer the best experience, (2) keep on quality; design and outstanding management, (3) be prior in future technology, (4) connect and inspire people to work for BWM,(5) always have responsibility with community and finally generate the excellent outcomes. WeaknessesPoor automotive brand portfolioBMW’s automotive brand portfolio only consists of 3 different brands: BMW, Mini and Rolls-Royce. Mini is acquired by BWM from British Motor Corporation – BMC in 2000 and Mini mainly produced the small cars. Rolls-Royce is original brand name Rolls-Royce plc- the British luxury automotive maker. About sedan; BMW portfolio includes BMW 1 series to 8 series. About SUVs and crossovers, BMW portfolio includes X1 to X7. Roadsters have Z4 and electric and hybrid have BMW i3 and i8. BMW don’t have pickup trucks, light and heavy vehicles or busses. About revenue; the most revenue of BMW come from luxury vehicles. Meanwhile, their competitor Mercedes- Benz portfolio include luxury vehicles; automobiles, trucks and bused.
BMW Case Study16Poor automotive brand portfolio will make BMW more risky than diversified portfolio.