Swot Analysis Of Bmw

Bayerische Motoren Werke (BMW) is a multi-national holding company and automaker company headquartered in Munich, Germany. BMW is a global leader in the premium automotive sector. BMW also markets MINI and Rolls Royce. Rolls Royce is a wholly-owned subsidiary. From its 2015 Annual Report, the BMW Group is comprised of three business segments: Automotive, which includes BMW, Mini, and Rolls Royce as their three brands, Motorcycles segment, and Financial Services segment. BMW’s financial services segment includes car leasing, fleet business, retail customer and dealer financing, customer deposit business, and insurance activities.

In 2015, BMW Group sold 2,247,485 units of automobiles and 136,963 units in their motorcycles segment. Revenues totaled

is 5511 - Motor Vehicle Dealers (New and Used), and it’s secondary SIC codes is 441110 - New Car Dealers. BMW’s competitors in the premium automotive sector include the Mercedes-Benz and Audi brands domestically. Foreign competitors include the Cadillac and Lexus brands (DeMattia, 2015). BMW’s closest competitor, and the only competitor that rivals their build quality, is Mercedes-Benz. Mercedes-Benz is a subsidiary of Daimler AG. Other Daimler AG subsidiaries include Mercedes-AMG, Smart, and Maybach in the automotive sector. Daimler’s strategy is four fold: “1) strengthen core business, 2) grow globally, 3) lead in technology, and 4) drive ahead with digitalization” (Daimler, Strategy, n.d.). BMW’s strategy has two targets: “1) to be profitable, and 2) to enhance long-term value in times of change, and this applies to technological, structural as well as cultural aspects of our company. Our activities will remain firmly focused on the premium segments of the international automobile markets. Our mission statement up to the year 2020 is clearly defined: the BMW Group is the world’s leading provider of premium products and premium services for individual mobility.” (BMW Group, Strategy, n.d.).

BMW Group operates in more than 150 countries and operates 30 manufacturing facilities in 14 countries. The BMW Group currently has sales subsidiaries in the following countries: Argentina, Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland,

Strategy Tripod Part One: Industry Conditions (Opportunities and Threats)

The largest markets for the luxury automotive industry are China, the U.S., Europe, and India. As an industry, the global market for luxury automobiles have been largely unaffected by the financial crisis and other economic trends. The decline in sales from developed countries during the financial crisis was offset by the increase in sales in the emerging markets. Today, China and the United States are considered to be the most important markets for the premium automakers. According to PRNewswire, “China became the largest auto market in the world in 2009, leaving the US behind. Be it passenger cars or luxury, China is the new focus market for auto manufacturers around the world. It is projected that the luxury car market in China will grow at an annual compounded rate of 12% in 2014-2020 while the overall passenger car market will grow at 8%” (PRNewswire, 1016).

As for BMW, they think about their key markets in terms of three regions: Europe, the Americas, and Asia. Almost one million BMW’s and Mini’s were sold in Europe in 2015, which is a 9.4% growth over prior year. “Many markets in the region achieved double-digit sales growth in 2015 with deliveries in Great Britain,