Strategic Realignment of the Bmw Group

Topics: BMW, BMW Sports Activity Series, BMW X5 Pages: 5 (1229 words) Published: September 21, 2008
Strategic realignment of the BMW Group
At the end of September 2007, the BMW Group
took on a new strategic direction. Up to the year
2020, the BMW Group intends to strengthen its
position within the global premium automobile market
by increasing volume of sales to more than two
million units per annum. The mission statement is
clearly defined: the BMW Group is the world’s leading
provider of premium products and premium
services for individual mobility. This means that in
addition to striving for organic growth in the core
line of business, the BMW Group will also engage in
new and profitable areas of activity throughout the
automotive life-cycle and all the way along the valueadded
chain. At the same time, the BMW Group
will invest substantially in future technologies, new
vehicle concepts and pioneering drive systems.
The new strategy, which has been given the name
Number ONE, is aimed at profitability and increasing
value over the long term. In order to achieve these
objectives, two new areas of responsibility have been
created within the Board of Management for the
“Corporate and Brand Development” and “Purchasing
and Supplier Network” divisions.

BMW Group remains best-selling premium
The BMW Group registered new sales volume records
in 2007 for all three brands. In total, 1,500,678 BMW,
MINI and Rolls-Royce brand cars were sold during
2007, an increase of 9.2 % compared to the previous
The number of BMW brand cars sold rose by
7.7 % to 1,276,793 units. The MINI achieved a particularly
encouraging increase. This brand recorded
an 18.5 % rise, with 222,875 units handed over to
customers. The Rolls-Royce brand also reported
strong volume growth (+ 25.5 %) in 2007. With
1,010 units sold, it was able to surpass the 1,000
mark for the first time.
Sales volume increases on nearly all markets
The car sales volume increase recorded by the BMW
Group in 2007 was spread over practically all markets.
Particularly high growth rates were achieved in
the emerging markets of South America and Asia,
notably China.
In North America, retail sales increased by 7.9 %
to 363,966 units. In total, 336,225 vehicles were sold
in the USA, the BMW Group’s largest single market,
7.1 % more than in the previous year.
In Europe, the number of cars sold in 2007 increased
by 10.0 % to 898,339 units. Whereas the
German market as a whole contracted by 9 %, the
number of cars delivered by the BMW Group fell by
only 1.5 % to 280,938 units. The BMW Group sold
173,818 units in the United Kingdom, up 12.8 %
compared to the previous year. In Italy, the 100,000
mark was surpassed for the first time. The sales
volume there rose by 10.9 % with 106,992 units
sold. In Spain, the sales volume climbed by 15.6 %
to 72,853 units. The increase in France (+ 23.1 %)
was particularly sharp with a sales volume of 65,093
units. Sales also grew strongly in Poland (3,543
units/+ 65.0 %) and in Russia (14,712 units/+ 54.5 %).
A sales volume increase of 12.2 % was recorded
in Asia. In total, 159,508 vehicles were handed over
to customers in this region. Strong growth was again
recorded on the Chinese markets (China, Hong Kong,
Taiwan), with 61,195 units sold (+ 36.7 %). The 2.6 %
decrease in sales volume in Japan (60,488 units)
should be seen in the light of the 5 % contraction
of the market as a whole. In India, where the BMW
Group operates its own assembly plant since March
2007, sales were up five-fold to 1,398 units
(+ 429.5 %).

Proportion of diesel-powered cars continues
to rise
The BMW brand was the most successful supplier of
diesel vehicles in the premium segment in 2007. In
many European countries, the proportion of dieselpowered
cars is significantly higher than the equivalent
petrol-powered versions. The highest proportion
(93 %) of BMW brand diesel vehicles was recorded
in Portugal. Similarly high proportions were also recorded
in France and Italy...
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