Five Disadvantages: BMW And Toyota Competitive Advantage

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BMW and Toyota Competitive Advantage BMW and Toyota intended to use the competitive advantage blocks in their favor to attract investors. They invest some efforts in quality, efficiency, innovation, and responsiveness to customers. Quality Quality is the talent of producing a product with high useful life, so it can survive more than their competitor’s products. Toyota and BMW both of them approach quality differently due to distinguishes between their strategies in the past. BMW in the past used differentiation strategy to build their car empire, but nowadays they are approaching low cost strategy; in contrast, Toyota used both strategies to establish a strong reputation in automotive industry. This results in impressive value to quality in the favor of Toyota. BMW is known for their high quality cars that cost them a lot to develop, but their cost is much higher than their competitors comparing to Toyota. In addition, Toyota strategy is to develop the best quality possible with the lowest cost to charge customers lower price than its rivals. According to…show more content…
Their employees are well trained before they work in the production line, as well as they are observed by employees who were hired just to observe the quality (BMW Group, 2015). BMW owns innovative equipments in the industry to produce Mini or BMW cars; however, Rolls-Royce have their own unique factories to produce the cars by hand, so there is no room for error in this case. In 2012, their plant in Landshut granted the industrial excellence award, which is based on strategy sitting, participation, and the communication and employee development (BMW Group, 2015). This indicates that BMW is selling cars with high prices because their manufacturing process involves many costs to make sure the customer receive what he paid

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