SWOT Analysis Of BMW

1. Strong Brand Reputation:

BMW has built up its brand image over the past 50 years through its effective and unique marketing strategies; this was done by associating the brand image with the consumers’ perception, such as their customers’ achievement and success, in addition it offers top-notch customer service and a supreme product quality. With $29 billion BMW brand is the third most valuable automotive industry brand in the world (Interbrand,2013) and it is the 10th most powerful brand in the UK. And it was listed as the most prestigious business in the world, in 2012 by the Forbes magazine.

2. High Quality Products & Highly Skilled Workforce:

BMW is globally known for its highly engineered developments and top sophisticated models of

High Cost Structure: BMW is known as one of the automobile manufacturing companies that produce luxurious types of cars. And since quality demands a price, a huge amount of money is spent on employing highly skilled workmen whom demand higher pay scale in order to produce vehicles of a higher quality compared to its competitor, added to that they spent a lot of money on the quality products that comes from expensive raw materials, so hence BMW’s products tend to be priced higher in contrast to their competitors in the automobile manufacturing industry. This results to the cut down of their profits and increases in the cost structure.

2. Expensive:

Since BMW manufactures luxury cars that require the best quality materials, skilled workforce and a great brand image, which as a result leads to a higher car prices that are often considered as too pricey compared to other car prices. In other words, BMW fails to appeal wider range of customers due to its affordability as it is only perceived to be affordable by those in the upper level of society. In addition, the fact of the BMW’s vehicles being overly expensive makes the future performance of the brand vulnerable to economic crises, and this is because such events usually cause a decline in the levels of consumer spending. And hence this may negatively affect

As it’s known that 90% of BMW growth is organic and only 10% is from acquisitions, without partnerships it becomes difficult to grow at technological and engineering level. In order to enhance BMW’s performance quality and sales, it has to acquire more brands and enter into more strategic partnerships. For instance a recent survey of top managers in the automobile industry revealed what they considered the top issues for the future is? And 85% of respondents answered that technology is the top priority (Automotive News, 2010). Therefore with all competitors focusing heavily on new technologies, BMW will find it difficult to compete if they have less alliances or acquisitions, than the majority of its