5 Forces of Bmw

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5 forces

Threat of Competitors- High .
BMW have got a lot of competitors . The biggest rivalry is a Mercedes. Both company aiming on the same customer group and have got nearly same quality of cars. Also there is threat form Audi , Lexus , Volkswagen and Reno .But BMW still holding one of the leading place in car industry , because of their established brand , good service and huge amount of innovations.

Power of buyer –High.
Buyers have got a lot of power over the production of the BMW, because car market is really competitive and BMW is willing to meet all customers needs and requirements in order to secure market share . Also BMW have got a wide range of car prices to satisfy all people with different income. For example lowest car price is 18000 thousand pounds , when another models could cost over 100000 thousand pounds. Threat of New entries - Low .

Car market is a really established market , and there is really low possibility of new competitors to enter the market .But there is a threat for all European car companies coming from the east . There is few young car companies rising up . They are not threat for BMW for now , but quality of Asian cars rises every year , so BMW could be put under pressure from them in a long term.

Threat of Substitute – low .
It is really hard to find substitute for a car. It becomes essential part of our modern life , like central heating and internet .But there is still few . One of them is motorbikes . But it is not threat to BMW with their big motorbike production . Bikes other substitute for a cars . There are becoming more popular every year . Public Transport is another substitute .

Power of Supplier – Low .

BMW produce all spare parts of car by themselves , they buy only raw materials and really high tech electronics outside . But they establish communications with their suppliers over many years of cooperation.

I don`t really know what to write about suppliers , because I didn`t find any...
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