BMW Automobile

GROUP MEMBERS:Jahanzaib Safdar 12-EE(E&T)-089Jawad Khan 11-EE-081Waleed Qadir 11-EE-101Shahzail Chaudhary 12-EE(E&T)-068Tabraiz Iftikhar 12-EE(E&T)-075

CONTENTGeneral InformationVision & MissionAnsoff’s MatrixProduct Life CycleWeb CultureOrganizational StructureSWOT AnalysisPorter’s 5 Forces

AboutBayerische Motoren Werke(BMW)1916 Aircraft Engines1923 Motorcycles1928 Automobiles1998 Parent company of Royal-Royce Motor cars2001 owns and produces Mini Brand

Strategic Approach:  BMW Group adopts a marketing campaign of targeting

its customers. In the slogans i.e. "The Ultimate Driving Machine" and "Sheer Driving Pleasure". 

• Mission• "The BMW Group is the world's leading provider of

premium products and premium services for individual mobility.“

• Vision• The BMW brand epitomises Sheer Driving Pleasure

past, present and into the next 100 years. BMW aims to make this fascinating driving experience even more intense in the future.

Ansoff’s Matrix

Market Penetration• Increase rate of

Purchase/Consumption • Attracts new customer by

launching new products• Convert non-user into current

user

Product DevelopmentSell new product in existing

market.For example:Approach was to launch new

model every 3 months.In 2003 launched mini one D.Maintained its eminent

reputation for producing dynamic and attractive mix style.

Market DevelopmentWestern Europe, USA, Japan and

other pacific regions have been main market for BMW but new market need to be exploited as well.

BMW Z4 reached in Europe and Asia with BMW X3 series.

While demand of high-end models like series 7 and 5 was also growing in China.

DiversificationSell new products or services in new

marketFor example:BMW diversified itself by producing

smaller 1 series cars.BMW was already producing mini series

but it never had small cars with their brand name BMW.

It entered car racing segment with launch of X3 activity car and large 6 series coupe .

Product Life Cycle

CULTURAL WEBSTORIESROUTINES AND RITUALSORGANIZATIONAL STRUCTURECONTROL SYSTEMPOWER STRUCTURESYMBOLS

STORIES :It started in 1916 in Munich, Germany.

BMW's first significant aircraft engine, and commercial product of any sort, was the  inline-six liquid-cooled engine of 1918, known for good fuel economy and high-altitude performance.

Since 1959, the controlling majority shareholder of BMW  has been the Quaint family, which owns about 46% of the stock.

RITUALS AND ROUTINES:• Individuals work for more than 8 hours.• Very competitive environment with

Mercedes as major competitor.• Now operating in more than 150

countries.

CONTROL SYSTEM:World wide code of conduct.

Integrated frame work.

Financial control.

Organization Chart

SYMBOLS:

SWOT ANALYSISSTRENGTHS: Geographic coverage. Great brand image reputation. Understand customer needs and demands. Premium car brand.

Weakness:

Buyer knowledge.Perception of high pricesBureaucratic control. Slow response to

change.Moving into a new market.

Opportunities :Increase market share.Customer want cheap cars.Growing demand of BMW in China.Increased profit levels.Monopoly of efficient and green cars.

Threats:Decline of the dollar against EuroCompetitionVery risky business decision, billions of

dollars at riskRising prices of raw material

5ps of production:Products:luxury cars, sports cars, motorbikesPlants: 30 plants in 14 countries on 4 subcontinentsProcess:

Contd.Program 3 shifts of eight hours.PeopleDirectors, managers,labour etc

PORTER’S FIVE FORCES:THREATS OF NEW ENTRANTS:

◦ Automobile industry and competitive.

◦ Companies enter this market every year in attempt to gain a portion of profitable market

◦ BMW has been around for a very long time.

◦ Its long history, product quality, consumer satisfaction allowed BMW to obtain a considerable share of the market

◦ New entrants should capture a portion of BMW’s Market to survive

PORTER’S FIVE FORCESTHREATS OF SUBSTITUTE GOODS:Wide range of similar products that compete directly

with BMW.BMW’s responsibility to improve its products.BMW is focused on its strategic environment and

production of luxurious cars to stay competitive.

PORTER’S FIVE FORCES:BARGAINING POWER OF

SUPPLIERS:Suppliers play a major role.Holds large purchasing power.Concerned about quality of products and cost.Directly influence supplier’s profit and their business.

PORTER’S FIVE FORCESBARGAINING POWER OF

CUSTOMERS :• Customer’s directly effect the company.• Play big role in consumption of products.• BMW understand the power of customers and their

needs.• Society is more quality conscious so quality is always

improved.

PORTER’S FIVE FORCESCOMPETITIVE RIVALRY WITHIN THE

INDUSTRY :• It is a global company with lot of competitors.

• They are in constant and continuous battle to outperform one another

• These companies spend hundreds of millions to appear more desirable

• Companies continue to strive in order to stay competitive but consumer will continue to enjoy ever- improving products.

Global Marketing StrategyThe company understands the logic of

marketing the product globally and serving the customers based on their needs.

According to consumers high quality of luxury.The company focuses on the premium segments

on a global scale. Producing attractive and trend setting products.

CURRENT STRATEGYThe latest innovation strategy implemented by

BMW is test driving the BMW X5 eDrive plug in hybrid prototype and the BMW 5 series Sedan; both of them are well equipped with the latest generation of proactive drive system.