BMW GROUP

BMW Group

BMW Group

Introduction

 BMW is the upper class car manufacture in the world. It has its best branding strategy and technology. However, due to the entrance of Japanese car manufactures in U.S. auto market, there are basically two problems that BMW needs to fact in order to stand its position and status in U.S. auto market. First of all, Japanese auto companies create high-performance cars to wrestle the luxury car market, and they are cheaper price and lower cost of maintenance. Secondly, Japanese auto companies have serve the best quality of service and the up-to-date technology to compete German cars.

Executive Summary:

        In order to rectify the problems that Japanese companies brought, BMW must take some actions regarding this. It needs to put a much greater emphasis on the quality of customer service. This would help BMW to have the long-term relationship with customers, which can gain the sustainable competitive advantage.

Company Background:

        Bavarian Motor Works - "The Ultimate Driving Machine" is also known as BMW, and it is the English translation from Bayerische Motoren Werke. "Bayerische Motoren Werke AG, German manufacturer of automobiles, motorcycles, and aircraft engineer. Based in Munich, Germany, the company is the leading auto exporter in Europe. The English translation of the company's name is 'Bavarian Motor Works'" (www.usedcarmart.co.uk/bmw.php)

It was founded as an aircraft engineer manufacturer in 1916. BMW has been dramatically affected by social, political, technical, and economic change. The company enjoyed success during World War I. After the war ended, the Treaty of Versailles forced severe restrictions on aircraft construction. In an effort to survive, BMW used acquisitions and joint ventures to move into the production of motorcycles and automobiles. In order to compete with industry power, BMW introduced its building block concept of auto development. Based on a family of automobiles with interchangeable parts and common body designs, this concept allowed production flexibility and provided a foundation for a strong marketing concept.

        BMW's philosophy is to build driving machines that respond faithfully and enjoyably to their driver's commands while also providing the safety, practicality, style, quality, reliability and durability that help make long-term ownership a rewarding experience. "Use its heritage of engineering and designing and its philosophy to provide drivers with high-performance cars to make driving a pleasure of life" (BMW.com).

In 1992, BMW announced that it would locate its North American manufacturing facility in Spartanburg County, South Carolina. BMW began construction on the plant in 1993 and shipped its first car, a 318i sedan, in 1995. The 23-month span from the groundbreaking in South Carolina to the first shipment is considered the fastest automotive start-up in history. Currently, in the U.S. automobile market, BMW has 1.2% of market share, and the sale volume has increased 20.8% (from 20,250 unites to 101,257). It seems that BMW does not have the large market share in U.S., but BMW truly has the strength to compete with other luxury car manufactures in U.S. market.

BMW's goals are: to reinforce the image and mystique of BMW products, to keep continuing process of innovation ...