Pestle Analysis: BMW: SWOT Analysis Of BMW

Background; BMW
BMW, or Bayerische Motoren Werke, is a public company that produces and sells engines, motorbikes and cars. BMW started off as a firm constructing engines for aircrafts, but had to stop in 1918 due to the Versailles Armistice Treaty shorty after World War 1. The company then started making motorcycles in 1923, once the terms of the treaty had started to lift. Shortly after, in 1928-9, BMW started manufacturing cars. BMW own the motor branch Mini too, whilst also being the parent company of Rolls-Royce.

SWOT Analysis for BMW:
Strengths:
• Solid brand presence – BMW have a good brand presence all over the world, but most importantly for them, in China. China is a major asset.
• Workforce – the workforce BMW have employed

Competitive Rivalry:
The rivalry for competitiveness in this industry is very high. The leading market sharers in this field, being the United States and Europe, are facing hard rivalry with the Chinese market in recent times.
Pestle Analysis for BMW:

Political Factors:
1. Since the outburst of the law and regulations that have been enforced upon the automotive industry, it has changed the way in which these companies have had to operate. Automotive companies have had to meet strict rules and regulations relating to pollution and what they are doing to drop their pollution output.
2. Legislative tax laws and foreign government policies are of critical importance to the automobile industry. It is these laws and policies that help decide the success for the profitability of the company.
3. Laws in the US and EU only permitting cars that let out emissions that are set below a certain standard.
Economic Factors:
1. Total global increase in GDP in the year 2008 from 2% to 3.1%.
2. Buying power in emerging countries such as India and China with their surplus capital along with their emergence into the global

These strategies would be brought in over a long period of time in order to not upset any customers or the way the business is run.
I would like to see a company loyalty strategy be put into place where by we help current customers stay loyal to our company. What this strategy entails is any customer of the BMW group (including those of Mini or Rolls-Royce) will, on the purchase of a brand new vehicle from one of the three companies, be given a choice to trade in their car when the latest version of their car comes out, and get 50% back on their current car.
Another strategy that could be used is to sponsor both rally car and Formula 1 cars to show the public how good and how versatile the company’s product is.
Also another strategy that could help, especially in South Africa, is having a back-up of spare parts. Or rather to have a production plant in South Africa to make spare parts for the cars used in this country, especially as we are a country that has such abundance of raw materials. Not only would this help boost the company’s profits, the countries economic growth, but it will also provide many job opportunities to a many skilled workers and