Bmw Group Case Study

Published: 2021-09-04 00:30:12
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Category: Business

Type of paper: Essay

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Fundamentally, the automobile industry is a textbook example of an industry where economies of scale pay a very important role. While there may be dozens of players around the world who produce, support and work with the industry, there are only a few producers who can claim to have a significant share of the market. Similarly, even though cars are produced in almost every developing and developed nation, only a few countries contribute in a significant manner to the global car production and consumption statistics. This can be attributed to the fact that the first automobiles were produced and developed soon after the industrial revolution by countries that had the required infrastructure and engineering skills. For example, the first steam powered three wheeler was built in France in 1769 and the first internal combustion engine was built in Belgium while the Germans made the predecessor of the modern car in 1885. Ford started his assembly line plans in 1896 and the mass production of motor vehicles was created as an established industry (Baki, 2004).
Car industries are noted to be one of the most essential means in the major part of the market worldwide. Nevertheless, with the existence of business environment of globalization and the competition in the automobile industry, the competition has become fierce. Primarily, this paper will analyze BMW and the competitive environment through the use of Porter's Five Forces Model.

Overview of BMW
The BMW Group is the only automobile and motorcycle manufacturer in the global market which focuses entirely on premium standards and excellent quality for all their brands and across all significant segments. With their brands like MINI, BMW, and Rolls-Royce Motor Cars, the industry has been emphasizing on selected previous segments in the global auto markets since the year 2000. In the succeeding years, the introduction of the BMW 1 Series meant an extension of the model range in the premium segment of the lower and average class and the BMW 6 series did likewise in the segment of the Large Convertibles and Coupés. The MINI marque was introduced in 2001 and the production started in the Oxford plant. In 2003, this automobile industry assumed marque accountability for Rolls-Royce Motor Cars.
BMW is a global brand and it has to position itself according to the global market requirements for high end cars. The automobile industry was established during World War 1 to produce engines; in year 1945, the industry was still considered as the leading manufacturers of aero-engines in Germany. However, the company diversified into what in 2000 to produce cars and motorcycles. After their diversification, the company has maintained its position to be the largest and most successful German companies. However, the road for sustainable advantage for the company has been affected by various market environmental factors. In this regard, it is important to analyse competition in automobile industries in 2004 through the use of Five Forces Model by Porter.

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