BMW SWOT analysis
One of the most valuable automotive brands in the world BMW is worth 8% less than it was in 2016, yet it’s still the
second most valuable auto brand in the world. Reason for this is its reputation
as “The Ultimate Driving Machine,” BMW’s line-up (from compact crossovers to
no-compromise sports cars) appeals to buyers who want something sportier than
an Audi and less formal than a Mercedes.
Geographically diversified revenue streams BMW’s eventual
goal was to diversify both its product and its service portfolios while also
finding new business models and revenue streams. In addition, it wanted to
capitalise on its reputation as a leader in innovation and to be in the
forefront of bringing environmentally friendly car technologies and new ideas
about transport to the market.
BMW are also in a Successful partnership with China
BMW aim for a Perfect engineering and excellent driving
experience and they do this by Exhilarating Powerful, Intense cars. The BMW
Driving Experiences are said to be the ultimate track days for driving
enthusiasts and true thrill-seekers. Sit back, buckle up and push yourself and
the most powerful BMW models to the absolute limit. To make you discover the power
and precision of BMW unforgettable driving experiences. Competence in hybrid
and electric cars, BMW said that in the future its production system “will
create structures that enable our production facilities to build models with a
combustion engine, plug-in hybrid or fully electric drive train at the same time”.
Clear strategy to meet the future challenges and trends, BMW is the only German
automobile manufacturer to have shown a consistently positive balance sheet
over the last 30 years and their business has been spared in all over the
world. They have sufficient capital to innovate more for future competition. BMW
have adopted after learning the need for defensive as well as aggressive
marketing and strategies. BMW has mastered the manufacturing fine art called
mass customization as, for years BMW had a reputation for cars that
combined great styling with exceptional performance. However, since the 1990s,
the company had also gained recognition for its customization program, which
allowed buyers to design their own cars from a set of available options.
Union representatives generally rate BMW a good employer as many have claimed
that working for BMW has been the best experience for them.
“BMW’s main weakness is that life is getting ever
narrower in the premium segment, and it needs volume growth.
Most of cars are expensive. Everyone cannot effort money
to buy, and it’s also very expensive to maintain this is because Parts are not
available in everywhere.
BMW isn’t as ruthlessly efficient as Toyota in some
respects, including the number of cars produced per worker per day.
Poor automotive brand portfolio with little product
Increasing debt levels
The company is planning to expend the business more as
they have enough capital to do so.
Three new model families are in the works, including a
luxury sports car.
Fuel prices are expected to rise in the near future
Demand for autonomous vehicles
Weakening euro exchange rate
Timing and frequency of new model releases
BMW is expanding its production capacity in Britain.
Toyota’s Lexus is starting to make inroads into BMW’s
European turf, while at home, rival Audi is turning up the heat, and Mercedes.
Germany is still far from being a freewheeling economy,
which is a fact for the company as well.
Other companies are trying producing comfortable cars for
the customer for chipper price then BMW.
Increasing competition in the worldwide automotive market
Increasing government regulations may raise the costs
U.S. automotive market is poised to slow down or even
Factors: These are those governmental
by-laws, legal regulations and security measures formulated by the governments
to control the automobile industry performances. These are:
a) The environmental restrictions and norms to be
fulfilled by the automobile manufactures to facilitate a pollution free
b) Taxes and duties both by domestic and foreign
countries affect the policies and success.
c) Schemes favoured by regulatory bodies to encourage
production of high mileage cars.
a) Reduction in
euro exchange rates varies the European automotive market.
b) The movement
of the European market towards downfall affected the industry.
c) The economic
conditions of the global level affect the top brands like BMW closely as this
is spread over the world.
d) The developing
countries purchasing capacity and demands attract the new developments.
a) Changes in the cultural factors categorizing status
symbol at a time or fuel efficiency based development influence demand-supply
b) Variation in purchasing power of the buyers due to
industry trends affects the sales.
c) Awareness about the global warming, eco-friendly
automotive & harmful emission resistant cars influence the sales, new
developments and turnover.
A) Use of more technology owing to the rising demands of
b) Technology not just helps cut down cost, but enables
more complex yet comfortable designs.
c) This supports eco-friendly revolution.
a) The awareness about global warming, go-green concept,
etc. affects sales.
d) Changes in the tastes and choice of the consumers and
buyers all over the world influences business.
E) Inclination of consumers towards eco-friendly, more
comfort oriented, fuel-efficient cars, etc. marks new developments.
suppressing pollution emission to protect environment.
a) The restricted norms on environmental measures and
preventive measures to ensure more fuel efficient and go-green vehicles.
b) Strict norms of the other countries and global level
impacts the initiatives of the automotive industry.
P5) Select a
variety of techniques to undertake a situational analysis of a given business.
“We don’t ever want our customers to grow bored,” said
Ludwig Willisch, CEO of BMW of North America. And by doing this BMW’S main aim
is to have a wide range of variety in cars this is by