The automobile industry is the most interesting and complex business sectors in the global framework for analysis. The Japanese cars are now supplemented by luxury models, such as Lexus Infinity and Acura to compete with European cars made by BMW and Mercedes and Audi. In this analysis, I’m going to develop company profile of BMW and its competitors (Lexus and Mercedes-Benz) per Porters criteria.
BMW AG Group
BMW AG was founded in 1916. Today the Company is one of Germany’s largest and most successful car and motorcycle manufacturers in the world. BMW Group owns three of the leading premium brands in the automobile industry: BMW, MINI and Rolls-Royce. They set the highest standards in terms of aesthetics, dynamics, technology and quality, born out by the company’s leading position in engineering and innovation. The Company also has a strong position in the motorcycles industry; BMW Group also offers a full range of financial services. The Company has adoption a strategy to differentiate from others by being the number one. Long-term thinking and responsible steps have been the cornerstones of business success. The BMW Group has been a sector leader in the DJS Indices for the last seven years”. The brand is named to be top employer worldwide also leads in terms of corporate citizenship. This year the company will launch a sustainability campaign, “What’s next?” Additionally, it has new hybrid model and 100% electric car entering the market in 2012. Their design is consistent with the brand’s trademark. Today’s two of the biggest competitors are Toyota’s Lexus and Daimler’s - Mercedes.
Lexus (division of Toyota Motor Corporation)
Established first in 1980s and launched in 1989, the Lexus marque soon became associated with quality, luxury and excellent customer satisfaction. The brand reputation grew rapidly until, just a decade after its founding. Lexus is now sold globally and Japan's largest selling brand of premium cars and top selling in US. Lexus is a part of the global Toyota family, whose members together comprise the world's third-leading automaker.
Mercedes-Benz (division of Daimler AG)
Mercedes Benz is a German automobiles manufacturer, which traces its origins to Karl Benz's 1886 Benz, known as the first automobile. MBUSA was founded in 1965 and it is responsible for the distribution and marketing of Mercedes-Benz, Maybach, Smarts and Sprinter products in the United States. Mercedes Benz is behind many technical innovations that are standard automotive features today, like the crumple zone (1959), ABS (1978), Airbags (1980), belt pre-tensioner (1980), ESP (1995), and others. Mercedes-Benz is one of the most known and established automotive brands in the world. It is also the world's oldest automotive brand that still exists today. Mercedes Benz holds, the famous three-pointed star rating that is not only recognized as a symbol of quality and safety, but also denotes a proud heritage.
Analyzing the competitive strategy of BMW with Lexus and Mercedes-Benz
Mercedes and BMW clearly have adapted differentiation strategy. The BMW Group’s strategy is to be number one. The strategy was introduced before the financial crisis appeared, in 2007. It is a strategy, which does not only focus on key numbers, but also to ensure customer and employee satisfaction and long-term sustainability. Mercedes strategy is to continue building the high quality vehicles with top safety rating and environmental features. Lexus originally had overall cost leadership strategy. In the last few years, the company started to different and being innovative. Their current strategy states: Do it right from the beginning. The company is committed to develop the most luxury cars.
Porter Competitive Analysis
Market Share (percent, rank)
-BMW (17.9%, First)
-Mercedes Benz (17.6%, Second)
-Lexus (14.3%, third)
Market Share Trends...