BMW

Topics: Strategic management, Automotive industry / Pages: 10 (2854 words) / Published: Apr 27th, 2015
Strategic Analysis of BMW AG

1.1 Evaluation of strategic factors affecting BMW strategy
To understand factors that influence on the competitiveness of BMW the SWOT analysis is applicable.

Strength
Weakness
• Strong Brand Reputation
• High cost policy
• Trained and highly skilled workforce
• Inefficient brand portfolio
• High quality products
• High product prices
• Corporate Social Responsibility
• Inefficient level of acquisition and
• Contribution to the environment strategic partnerships
Opportunities
Threats
• "Green Vehicles"
• Severe competition
• Growing fuel prices
• Increasing raw materials prices
• Enrich business portfolio
• Dropping fuel prices
• Regulations concerning level of emissions
• Increasing exchange rate of euro

Analysis of controllable factors

Strengths
Strong Brand Reputation can be considered as the main strengths of BMW. Through many years marketing executive has been grown the brand image, so now BMW is perceived as the third most expensive brand in automotive market and is valued at $29 billion.
Trained and highly skilled workforce is the asset in which BMW invests heavily. For, assembly of quality cars demands for quality materials and extremely skilled workforce. Therefore, BMW cars are manufactured only in the areas where the most skilled car manufacturers work like Germany and USA.
High quality product is the strength for which people valued BMW. The level of recalled cars produced by BMW much more less comparing to its rivals.
CSR activities of BMW are really impressive. The care manufacturing company provides large investments in various CRS programs, like sustainability requirements for its suppliers, health management of employees, balanced work life and zero waste at its plants.
Contribution to the environmentis one of the main goals of the company, for, about 20 car models assembled by BMW emit carbon dioxide as low as 140g/km. Moreover, BMW engineers create new kinds of fuels,

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