Marketing Strategy Analysis: BMW

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With its four brands, the BMW group is competing in the industry of luxury automotive and motorcycles. This industry is performing well ; while the motorcycle market has been relatively flat these last years, the automotive market shows a positive increase with a strong growth in China (+17.4%) and Europe (+6.6%).
In this industry, BMW faces the competition of two major rivals, Audi and Mercedes-Benz. As these three groups represent an important part of the market, competition is tough, where each one pushes its limits to be the leader. We can analyze the five main competitive forces presented by the Porter’s model as follow.
First of all, let’s consider the threat of substitutes and the threat of new entrants. The threat of new entrants
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Benefiting from a leader position, BMW has proved that its strategy was effective. Indeed, BMW understood that strategy should evolve with time, as we can see with the evolution of its approach of the market. In 2001, BMW group launched Premium Brand strategy in order to become a well established brand in the luxury market. Following the success of this strategy, BMW launched Strategy Number One in 2007 and then recently, Strategy Number One > Next in 2016. This last one focuses on the customer’s experience, the electric vehicles and the car of the…show more content…
Indeed, BMW projects to have between 15 and 25% of its sales with electric vehicles by 2025[2], dealing with one of our modern society 's problem : global warming. By launching these eco-friendly cars, BMW proves that it is able to develop its portfolio and thus increase its weight in the market, while responding to the current demand of the customers, concerned about our futures.
BMW group makes developing its creativity a point of honour. Indeed, the revolutionary design of its products makes them become trendsetting in the industry. The car has to be aesthetic and reflect the brand’s ambition, which is to lead the transportation of tomorrow. Indeed, luxury products do not only fulfil a need ; they go beyond. Customers do not want to buy a premium car only for its performance but also because it is

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