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BMW

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BMW
"BMW OF NORTH AMERICA: DREAM IT. BUILD IT. DRIVE IT"

BMW has been in the mass customization business since 1992. This longevity in the customization expertise has enabled them to deliver on schedule and also make last minute changes in the production process. Customization at BMW also was instrumental in the successful re-launch of the iconic MINI. Technology and media have also impacted greatly to the buyers mentality in car purchase. Online research is a driver in the buying process, whether it is new or used.

BMW's X3 product manager has the issue at hand to whether or not expand the mass customization program across all BMW product lines. This idea emerged in order to revitalize sales of products which were under performing, or to use the program to launch new products. BMW's challenges will be the direct effects of rising gas prices, production cost, customer lead times and global and regional distribution strategy. BMW currently offering a comprehensive customization program for their X3 model. The Dream it, Build it, Drive it, customization strategy has cross led to the great improvement in their distribution, as dealers have to carry less inventory. Much of the X3 success which came from customization after it was initially doing poorly. The customization program rein vitalized the sales and made it one of the best selling brands

Strength
Quality, reliability, and service
New models
Brand equity
Brand positioning
Customer loyalty
Marketing and media
Innovation
First mover advantage in innovation

Weaknesses
Price
Gas prices for SUV
Geography

Opportunities
Lower end market
Trucks
Geographic expansion
Advertising with media and games

Threats
Competitors
Innovation
Public transport

The following are the issues at hand for the BMW North American team:
Should the program be used to revitalize the sales of the struggling X5?
The answer is yes, because:
Customization is something which is appealing to the masses
Studies show, SUV demand is
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