Our Members Sophie Logan Nicole Introduction Golabal Expansion Competitors SWOT Challenges Industry Analysis Amelia Recommendations Introduction of BMW Global Market Expansion & Challenges Competitors Industry Analysis Recommendations Introduction of BMW Past Current Founded in 1916, German An aircraft engine manufacturing plant Four stroke internal combustion engine Royce-Rolls, BMW, MINI High-end vehicles, aircraft engines, motocycles, SUVs Battery-driven cars Future “Project i ” Fun Fact! Fun Fact SWOT Analysis Strengths Weakness • Long history, abundant technical strength and strong finance • Own BMW, MINI, and Rolls-Royce synchronously • Numerous R&D funds • 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 Threats • Mature developed country market and emerging developing country market • Income increasing • Global environment issues • Intense competition • Increasing price of raw materials and larbor force • Oil price Global Market Expansion Global Market Share 5.40% 3% 3.20% 9.60% 15% 15.40% 17.40% 14% 11.10% 5.40% BMW FORD Toyota Nissan Volkswagon General Motor Honda Kia Mazda Chrysler Global Market Expansion Different Attitudes To Purchase Cars Europeans Asians Americans Reliability, security, quality, advanced technology Brand, quality, economic, security The function of the car decides the car’s amount The market strategy of Asia Four phases Asian Quantifies the potential of the of Asia market markets Fourth First Divided Asian markets into four phases Establishment of a complete factory. Thrid As an import merchant Second Established sales company in oversea Set up completely knocked down (CDK) factory The market strategy of America • 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 Electronic Fuel Injection Porsche – Panamera BMW - 7 Series, 750i Luxury style Emphasis on comfort Stable Lower price Low emission Competitors – domestic Audi- R8 In U.S saled 100,000 last year Success in China BMW- M6 Success in U.S. saled 336,000 last year 200,000 goal in Asia, 2012 Competitors – International Mitsubishi (Japanese) – Evolution BMW – 335i xDrive Powerful Lower emissions Lower fuel consumption Professional Industry Analysis Important role in economic development Fun Fact In fact, 85% of scrape cars have been recycled Stage 3 in German . B Stage 2 Stage 1 The industry was originated in Germany, in 1886 A C Automobile “Loan Capital “Commercial Capital Industry Globalization” Globalization” Future trends - new energy sources E D The automobile industry was devided into three stages. “Industry Capital Globalization” Difficult time of Global automobile industry Recommendations Short-term Recommendations 1 2 Make the quality assurance and keep its brand image 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” Long-term Recommendations 1 2 3 To be more efficient and environmental, to face the challenges of global warming, rising emissions, and dependence on oil import. Development of new energy vechicles, while balancing the contradiction between the cost advantages and competitive advantages. Use of their competitive advantages, exploit new markets, and tap potential customers.