Our Members
Sophie Logan Nicole Amelia
Introduction
SWOT
Golabal Expansion
Challenges
Competitors
Industry Analysis
Recommendations
Introduction of BMW
Global Market Expansion & Challenges
Competitors
Industry Analysis
Recommendations
Introduction of BMW
Founded in 1916, German
An aircraft engine manufacturing plant
Four stroke internal combustion engine
Fun Fact!
Royce-Rolls, BMW, MINI
High-end vehicles, aircraft engines, motocycles, SUVs
Battery-driven cars
“Project i ”
Fun Fact
SWOT Analysis
Strengths
• Long history, abundant technical strength and strong finance
• Own BMW, MINI, and Rolls-Royce synchronously
• Numerous R&D funds
Weakness
• Pure high-grade route
• More oil consumption relatively
• High price of repairing and after service
• Recalled 350,800 cars all over the world due to quality problems.
Opportunities
• Mature developed country market and emerging developing country market
• Income increasing
• Global environment issues
Threats
• Intense competition
• Increasing price of raw materials and larbor force
• Oil price
Global Market Expansion
Global Market Share
5.40%
3.20%
3%
9.60%
15%
15.40%
17.40%
11.10%
14%
5.40%
BMW
FORD
Toyota
Nissan
Volkswagon
General Motor
Honda
Kia
Mazda
Chrysler
Global Market Expansion
Different Attitudes To Purchase Cars
Europeans
Reliability, security, quality, advanced technology
Asians Brand, quality, economic, security
Americans The function of the car decides the car’s amount
Four phases of Asian markets
First
Divided Asian markets into four phases
Thrid
As an import merchant
Fourth
Establishment of a complete factory.
Second
Established sales company in oversea
Set up completely knocked down (CDK) factory
• The concept of the American to the car: the function of the car decides the car’s amount
• Depend on the excellent advertising activity to develop the new market.
• Promotes the brand position.
Challenges
The wrong brand strategy
The BMW become the low quality upstart’s car
During the global market expansion, the brand strategy captain and integrate the whole enterprise value
Problems in
China
Competitors – domestic
Porsche – Panamera
Electronic Fuel
Injection
BMW - 7 Series, 750i
Luxury style
Emphasis on comfort
Stable
Lower price
Low emission
Competitors – domestic
Audi- R8 BMW- M6
In U.S saled 100,000 last year
Success in China
Success in U.S. saled 336,000 last year
200,000 goal in Asia, 2012
Competitors – International
Mitsubishi (Japanese)
– Evolution
BMW – 335i xDrive
Powerful
Professional
Lower emissions
Lower fuel consumption
Industry Analysis
Important role in economic development
.
Stage 1
B
Stage 2
Fun Fact
In fact, 85% of scrape
Stage 3 in German
The industry was originated in
Germany, in 1886
A
“Commercial Capital
Globalization”
Automobile
Industry
Globalization”
C
The automobile industry was devided into three stages.
“Industry Capital
Globalization”
Future trends - new energy sources
E
D
Difficult time of Global automobile industry
Recommendations
Short-term Recommendations
1
Make the quality assurance and keep its brand image
2
Two groups may drive BMW more successful in China.
One is rich strong background cool guys. Another is modern fashion women.
Fun Fact 3
Keep positioning its car level in high-end cars, and instant promoting its strength – “The
Ultimate Driving
Machine”
1
Long-term Recommendations
To be more efficient and environmental, to face the challenges of global warming, rising emissions, and dependence on oil import.
2
Development of new energy vechicles, while balancing the contradiction between the cost advantages and competitive advantages.
3
Use of their competitive advantages, exploit new markets, and tap potential customers.