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BMW Case Study

The Restructuring of BMW

Sam O'Byrne

on 1 December 2010

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Transcript of BMW Case Study

BMW Case Study Aaron Bradshaw Conor McAlinden Eoin Rigney Sam O'Byrne Who are BMW ? The BMW Group are a European Manufacturer of prestigious automobiles.
It was founded in the early 20th Century when it began producing.
This presentation will focus on the early years of the 21st Century BAHHRD "The ultimate driving machine" The slogan applies to all company products.
An image of reliability and an aura of superiority is created. Policies and Procedures The company changed their design experts, as they identified the area as ‘very important to customer choice’. Advertising would not be enough to promote the products, this led to the ‘ultimate driving machine’ slogan This refers to the cost of keeping the car at top spec after purchase, BMW is a market leader in this aspect.
BMW strive to achieve product excellence by seperating themselves from competitors.
As a result of these policies BMW have moved way ahead of their competition.
Cost of Ownership Sales by 2004
over 1,000,000 Main Trends
Automobile industry was in a mature phase.
Branding now used as a competitive tool.
Companies competing mainly on price. Porter 5 Forces Potential Entrants
Substitute Products
Power of Buyers
Power of Suppliers
Competitive Rivalry Critical Success Factors
Controlled distribution network
After Sales Service Sources of Competitive Advantage Product Development/ Market Development
2002 CEO of BMW Announced strategy of of product and market development.

Increase market share/ Enter into new markets Developing new models every 3 months Smaller Models developed to create new market for BMW Recomendations
Premium Pricing
Unnecessary to develop such a wide range of models which could be damageing to brand image.
Quality control must be kept to a high standard in order to protect the BMW brand Environmental Factors should be considered
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