Brand value is closely related to brand recognition and its positive reputation, which means that BMW brand is one of the most recognizable a… Analysis Of Factors Influencing Activities of BMW Marketting Essays. The brand has got a large product portfolio which includes BMW, Mini and Rolls Royce cars as well as motorcycles. A global and strong  manufacturing and distribution network has helped BMW maintain a strong global presence and cater to consumer demand and changing trends with efficiency. For instance, it had approximately 17% market share in the USA in 2018 (Wagner, 2019). Assignment on. August 23, 2020 by Abhijeet Pratap. Any information contained in this SWOT analysis should not be used as a basis for providing financial or investment advice and should be treated as educational content only. These vehicles come loaded with features like “electric drivetrains, connectivity, intelligent lightweight construction, exceptional design and newly developed mobility services” (Annual Report, 2018). The brand is also investing in the autonomous driving technology and is working on its fully electric car model which it will release in 2021. SWOT Analysis is a proven management framework which enables a brand like BMW to benchmark its business & performance as compared to the competitors and industry. There are several car brands in the world which investing aggressively in technology, marketing and driver safety to grow their market share. SWOT Analysis of BMW Strengths: BMW group Innovation & technological advancement Renowned brand in automobile industry Workforce Product portfolio Asian markets Plans for hybrid models ... Oct 2019) Adam Nash. In the future, BMW must try to control operating expenses. Successful working relations with China 6. It is a brand of luxury vehicles. The automobile industry has grown highly competitive. However, 2019 onwards demand could dampen a bit according to sources. The company has in total 11 partnerships in China, which employ over 58,000 employees. 2nd Nov 2020 Swot Analysis Reference this Tags: SWOT Analysis BMW SWOT Automotive. He likes to blog and share his knowledge and research in business management, marketing, literature and other areas with his readers. One thing that makes the brand stand out from the rest is the balance between high quality, style, and performance. It has brought some of the most popular cars and motorcycles to the market in the premium segment. Retrieved from PESTLE analysis: Jurevicius, O. Aug 9, 2019 - Read more about the strengths, weaknesses, opportunities and threats of BMW in this SWOT analysis for 2019. BMW invests a lot in its human capital to keep its workers motivated and engaged. These cars are priced at $300,000 or higher. The company has struck several strategic partnerships around the globe with local companies to strengthen its international business network. Growing role of government and regulatory agencies in the area of international business has necessitated special focus upon political factors. They have fe… In 2019, BMW is on the 53rd position in the Fortune 500 list. Market Share (percent, rank) -BMW (17.9%, First) -Mercedes Benz (17.6%, Second) -Lexus (14.3%, third) Market Share Trends BMW has responded to consumer demands for more fuel efficient cars by producing smaller vehicles such … Its biggest market is China where it sold 3.65 million vehicles in 2018 (Xinhua, 2019). Apart from a small decline in revenue in 2018, the company’s financial performance over the last five years has remained stable. It has already introduced the plugin hybrid variants of several of its leading car models. In the first half of 2019, BMW experienced growth in its market share in its leading four markets – China, USA, UK and Germany. Cars recalled: Controversies relating to recall of cars on account of some technical functionality or non abidance to govt. This categorises it as reputable business at a global level. Copyright © 2020 Business Strategy Hub. Need help with BMW SWOT & PESTLE Analysis? Growing operating expenses lead to shrinking profit margins. More than 15,000 people were working in research and development  function for the company at 16 locations in 15 countries. In this regard, BMW has entered into partnerships and collaborative agreements with companies from inside the auto industry as well as technology leaders. Partners or contract manufacturers operate the eight remaining sites. Video marketing trends have grown stronger  based upon the level of engagement that videos can provide. BMW has already entered into two strategic partnerships with leading automobile brands of China. Some of the major drivers of brand recognition for BMW are marketing, commitment to quality, innovation and rider safety. BMW has revised its business strategy to consider the downward pressure created by these forces. SWOT analysis of BMW. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. It started its range of electric cars with the i3 range. The brand is known to be versatile and has vehicles that are in the ultra-premium portion just as autos which are essentially reasonable to the extent extravagance vehicles go. BMW must use video marketing in combination with social media to run seasonal campaigns as well as for engaging customers on various issues like sustainability and driver safety. Strength. APIdays Paris 2019 - Innovation @ scale, APIs as Digital Factories' New Machi Moreover, it’s planning faster electrification of its product range in the near future. China is the largest car market in the world. From 2017 to 2018, the research and development expenses of BMW grew by 12.8%. The vehicle industry has undergone major changes in recent years driven by growth in technology and changing customer trends. The electrified vehicle segment holds immense potential and it is why the company has planned to grow its range of electric vehicles aggressively and meanwhile introduce plugin hybrid variants of its existing models. The operating expenses of BMW have also increased a lot over the past several years. Its position declined two points in 2019 compared to the previous year. BMW Group is a formidable force, able to affect bills and regulations because of the massive funds the firm brings in each year. BMW has a large manufacturing and distribution network that includes locations in key markets. 3 of the locations belong to the BMW joint venture in China known as BMW Brilliance Automotive (BBA). BMW has been aggressively investing in research and development. He graduated with a Hons. Company Description 4.1 The History of BMW 4.2 BMW Today 4.3 Corporate Strategy 4.5 Collaborations 5. All these qualities are consistently evident in each BMW regardless of the year it was manufactured. Trade conflicts in 2018 made it a challenging year for the … BMW motorcycles are also made for the premium segment of customers. BMW-AG is a German automobile, motorcycle and engine manufacturing company based in Munich, Germany. The business of BMW group is divided into three segments that include cars, motorcycles and financial services. Billigautofirmen mit ihren stilvollen und preiswerten Angeboten werden eine große externe Gefahr für das Unternehmen darstellen. The company has created a new plan for future with core focus upon profitability, growth and futuristic innovation. Only Toyota’sand Mercedes-Benz' brands can compete with BMW in both lists. In October 2018, BMW was forced to recall at least 268,000 vehicles in the UK market because of a potential fire hazard. Fun Fact: Did you know that BMW used to make airplanes, and it only got into auto manufacture after the Treaty of Versailles banned all German companies from producing warplanes following World War I? The entire Asia Pacific region has experienced growth in demand for vehicles. This report basically tells you about BMW’s SWOT analysis. There are 15,000 people working in five countries at 16 locations in its R&D network. ... (2019-2025) 1.5.2 Building and Home Automation 1.5.3 Energy and Utilities 1.5.4 Manufacturing 1.5.5 Connected Logistics 1.5.6 BFSI 1.5.7 Transportation MINI brand is also known for the superior driving experience it offers and RollsRoyce, well acclaimed for its quality and service on the other hand, caters to the ultra luxury segment. As such, the economic performance of these economies matters the most for the company and fluctuation in these economies can have a negative impact on its bottom line. Porter Competitive Analysis. In the coming years, the demand for automobiles is expected to grow. We respect your privacy. R&D expenses were €6,108 million in 2017 and grew to €6,809 million in 2018. A brand with a strong monetary value. Sales of the car brand have continued to increase year on year. Sep 20, 2019. BMW also has price variations according to the locations it is striving in. Sales of Mini vehicles fell by 2.8% in 2018, Rolls Royce sales grew by 22.2% in 2018 rising to 4,107 from 3,362 last year. The automobile industry is going through a phase of transformation driven by technological growth and changing customer trends. Customer is at the centre of everything in the 21st century and brands are now more cautious than ever about customer experience and customer engagement since these factors affect customer demand. This article is about the detailed SWOT analysis of company BMW.Probably the best vehicle over the world, known for its quality and configuration is BMW. To help you gain insight into the company’s success, here is the BMW SWOT Analysis: Tell us what you think? In 2018, the growth rate of the global economy was 3.7%. BMW group has entered a partnership with Daimler AG to merge the mobility services of both companies. It leads the premium segment in USA. As the demand for electrified vehicles keeps growing around the world, BMW is continuously expanding its rage of electrified vehicles. Not just BMW, but the Mini and RollsRoyce brands which the BMW group owns, also cater to the premium segment and have brought  a large range of luxury vehicles to the market. It has continued to bring new models with a strong focus on modern technology as well as rider safety and vehicle efficiency. The company is looking forward to grow its stake in the BBA from 50% to 75%. Your information is safe and will never be shared. Year on year, the research and development expenses of BMW have grown significantly. In 2018, the company planned to have more than half a million electrified vehicles on the roads by 2019. The uncertainty created by these factors had an evident effect on its business in the previous year. As it is illustrated in Figure 1 below, BMW is the second most valuable brand in automobile industry after … To acquire faster growth in the car market, the brand is focusing upon growing its range of electrified vehicles. BMW is also the largest seller of electrified vehicles in Europe. The BMW vehicles are priced in the $35,000 – $100,000 range. Customer interest in autonomous driving has grown with time and some brands including Tesla have already released models equipped with autonomous driving features. Moreover, uncertainty in the European market has grown caused by Brexit and other political changes like the elections in Italy which dampened investor sentiment during the year. Forbes places BMW brand as the 2nd most valuable automotive brand in the world, worth US$ 28.8 billion. Analyse SWOT de BMW 11 Sept. 2018 Véhicules de luxe Décryptage économique Fleuron de l'industrie allemande, BMW est un des fabricants d'automobiles et de motocyclettes les plus importants de l'histoire du secteur. Trade conflicts between the U.S. and China are also affecting vehicle businesses including BMW and driving their operational costs higher. 702 words (3 pages) Swot Analysis. Customers are looking for more environment-friendly vehicles. This has made a BMW a huge brand name not just attracting consumers, but also a … BMW is focusing on market expansion and growing its product line to retain car and motorcycle sales and attract new customers. Its associates are equipped with the tools that help them handle legal risks. However, the size of the car market has also grown. SWOT Analysis. Countries including the U.S., China, UK and Germany account for the larger part of its revenue. The Asian markets have experienced growth at a sound rate. 1. The brand recalled as many as 1.6 million vehicles globally. charged with collusion over emissions, The Story Behind BMW, Rolls-Royce, And MINI’s Exciting Future Product Strategy, The Reasons Why Millennials Aren’t As Car Crazed As Baby Boomers, And How Self-Driving Cars Fit In, Auto giants battle used car dealers for Africa’s huge market, Autonomous Vehicle Market Demand to Reach 4.2 Million Units by 2030, 2020 set to be the year of the electric car, say, industry analysts, With a Recession Looming, Is This a Safe Time to Buy a Car, BMW warns of difficult 2019 as it posts lower 2018 profit, Top German carmakers charged with blocking clean emissions technology, Trump Offers German Automakers a Pause on Car Tariffs, for Now, BMW cuts outlook sees coronavirus pain lasting all year, Here’s Why The BMW M3 Is No Longer The “Ultimate Driving Machine, Millennials don’t want to own cars, prefer shared mobility: Deloitte study. The Triangle Analysis – Objects 5.1 The Products 5.2 The Markets 5.3 Future 6. Apart from these manufacturing and assembly sites located around the globe, the company also operates 16 research and development sites in various corners globally. Growing economic activity in the U.S. has proved particularly profitable for the brand. In 2018, the company was ranked at the tenth position in the Forbes list of world’s best employers. Their focus upon safety has grown due to increased legal pressure and apart from the overall safety of the vehicles, companies also focus upon individual parts. The company invests in its employees in several ways including training as well as special benefits like company shares. The company’s ability to pass on the 10% import tariff, results from no-deal Brexit to customers is limited; therefore, there will be a trade-off between maintaining margin or losing sales volumes. BMW is also experiencing higher competitive pressure which can lead to decline in market share. Share your thoughts and experiences in the comments section below. BMW imported more than 63,000 vehicles to China and sold 233,000 units in the U.K during 2019, as well as assembled around 228,000 MINI and Rolls-Royce in the U.K. 2. Net profit of BMW in 2018 declined to €7.2 billion in 2018 from €8.7 billion in 2017. However, producing such cars also requires a large investment each year in research and development as well as latest technologies and marketing. To combat the competitive threat, leading brands like BMW, Daimler AG, Toyota and Volkswagen among others are entering into strategic partnerships with other car brands to share expertise and find growth together. BMW has created a high expectation putting them in the spotlight. 3.4 SWOT-Analysis 4. Save my name, email, and website in this browser for the next time I comment. The main reason behind such GM’s success is its joint ventures in China. ... BMW, Chevrolet, Hyundai, Tesla, Mercedez. Large Product Portfolio : Volkswagen owns 12 brands. In 2019, BMW is on the 53rd position in the Fortune 500 list. BMW has also entered into a joint venture with Brilliance China Automotive Holdings Ltd. in China to form the BMW Brilliance Automotive (BBA). As of July 2019, GM serves 6 continents across 23 time zones (General Motors, 2019). BMW is the core brand of the group and caters to a very large range of customers’ needs from fuel efficient vehicles to high performance car models. The premium pricing strategy of the brand is related to its premium brand image. SWOT ANALYSIS OF BMW Strength: In the automotive segment, BMW deliveries grew by 1.8% to 2,125,026 units in 2018 from 2,088,283 units previous year. BMW started as a manufacturer of aircraft engines in 1913, but in 1919 following the … Net revenues of the brand fell from €98.3 billion in 2017 to €97.5 billion in 2018. Moreover, if the performance of BMW has been strong in recent years, it is also a result of the healthy economic activity worldwide. Weaknesses are their high pricing to their cars; due to this the competitors can have an advantage. In 2019, BMW’s second-quarter earnings dropped by 48% due to an increase in the cost of manufacturing. The automotive industry is experiencing higher competition and despite that BMW has maintained its growth momentum. If one of the products loses its brand image then the whole group can lose its brand image. It is a handy technique to analyze the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) BMW is facing in its current business environment. It also focuses on hiring the best who can help the company find faster growth. Strengths. Auch die starre Konkurrenz von anderen Unternehmen im Premiumsegment wie Audi und Mercedes ist ein entscheidender Faktor bei den Risiken. The consumer value chain is based on the channel value chain BMW offers namely price, design and location. In BMW SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. Stylish BMW cars have found heavy popularity among the higher end customers in all the leading Western markets. 20 of the locations are BMW group plants. However, the competition in the industry is also high and brands need to invest in research and innovation to maintain their competitive position. ... 2019 7 Min Read. This will help the brand grow its market share in the Asia Pacific market and find faster growth there. Focus on electrified vehicles could be the next driver of demand for auto brands. [ Source 18 ] Stringent Regulations: As governments adopt stringent laws to combat emissions, it is very easy for any automaker to get in trouble. The car industry is full of challenges but there are opportunities too since the car market globally has grown at a healthy rate in the last several years. The brand has retained heavy focus on customer safety as well as rider convenience. With advancing technology, the number of opportunities before the automobile brands have also grown. Did you find this article interesting? The company has created a new plan for future with core focus upon profitability, growth and futuristic innovation. Automated driving is an area which can prove highly profitable for premium car brands. The number of people working for BMW grew to  134,682 in 2018; an increase of 3.7% versus the previous year. Autonomous Vehicle Market 2020 SWOT Analysis, Global Growth Prospects By Major Companies –, Daimler, Audi, BMW, Nio. BMW invests  a lot in creating some of the world’s best premium vehicles including cars and motorcycles. DP World launched DPWorld4Women, a campaign aimed at boosting female participation in the shipping and logistics industry. INTRODUCTIONSTRENGTHSWEAKNESSESOPPORTUNITIESTHREATSCONCLUSION. She is a creative writer, corporate storyteller and global brand consultant, who has a unique combination of a business and creative mindset. Ewing, J., and Glenn Thrush (2018, December 4). Strengths. The growth of Tesla and rising popularity of electric cars is also adding to the growing competitive pressure. Apart from a large range of stylish cars, BMW is also known for its focus on driver safety. BMW remains careful about compliance in all the regions of the world where it operates and has not faced any major legal trouble in recent years. Read more about the strengths, weaknesses, opportunities and threats of BMW in this SWOT analysis. BMW is a highly reputable brand with strong brand image with is associated with efficiency and prestige. Leading brands including BMW are entering into strategic partnerships with other global and local vehicle brands to fast grow sales and market share. All rights reserved | contact@bstrategyhub.com | Logo designed by Looka. 1928 With the acquisition of One core aim of these partnerships and collaboration agreements is to share expertise and grow the pace at which new innovations are brought to the customers. Join our newsletter today to get updates on the latest posts! The company has brought a large range of motorcycles which have achieved high level popularity in the market for style and efficiency. BMW has entered into one more important joint venture in China with Great Wall Motors for the production of electrified MINI vehicles. To get updates on the 53rd position in some of the global economy, sales performance of BMW to... 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