Economic environment the recent financial crisis has

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Economic environment The recent financial crisis has laid tremendous influence on the global economy. This also led the change in consumer behavior of customers, especially for expensive items like car. For premium cost brand like BMW, the impact is even larger. It is undeniable that fluctuation in global economy has influence on BMW’s performance, valuation and profit. Fluctuation in global economy makes it difficult for BMW to even gain profit, not mentioning about losses in following years. Tariff is also one of the problem for BMW. Since the brand appear in many different countries out of German, it has to put up with the tariff policies of the host countries. The issue raises when the company produce cars in different countries, say in the U.S, then sell the products to the Europe, it will lose 10 per cent for tariff. Despite the fact, BMW still have to invest its plants in the U.S, South Carolina for important and necessary parts of the cars that need steel and aluminum. Social environment Each country has its own unique culture. This also means that BMW need to adjust their products to fit in with the culture of each country as well as to adapt with the market in that country. BMW has manufacturing companies in many parts of the world including Australia, South Africa and China. This is not only because of the customers in those regions but also
BMW CASE STUDY 9 because of the social and economical situation in those countries that can benefits the company themselves. In recent times, the tendency of people using mass media and social network is increasing. BMW takes this opportunity to advertise their products through social networks such as Facebook, Twitter, Instagram. Through those channels, they have their people to respond to all customers inquiries, comments or complaints. In addition, social networks like those is a very simple way for them to showcase BMW’s lavish style to its followers. Technology environment In the times of modern technology, the only way for a company and brand to stand out is to apply innovation and adaptation. Being a luxury automobile brand, it requires BMW to continuously apply high technology in order to improve and upgrade their products to meet demand of its high-class customers. Many technologies for leisure in car like Bluetooth, wifi or to serve customers’ convenience such as autonomous driving, autonomous parking or hybrid vehicle. SWOT Analysis of BMW Being one of the leading company in automobile industry, BMW has certain strengths and opportunities but also unavoidable weaknesses and threats. The thing is how they recognize the weaknesses and threats to have respond plan as well as to make use of the strengths and opportunities to have the right approach for development. The Strength, Weaknesses, Opportunities and Threats are described in the below table following by detailed analysis .

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