BMW SWOT Analysis Essay Example

saved BMW from bankruptcy by trusting in the unions and their belief in a promising future and their own capabilities. As a committed leader, Mr. Quandt purchased more shares against the advice of fellow entrepreneurs and bank executives.

Currently, the company's mission and goals revolve around pursuing "Strategy Number ONE," which seeks to attain profitability and enhance long-term value amidst changing times.

The text emphasizes the four pillars that sustain BMW's strategy: "growth, profitability, shaping of the future, and access to technology and customers." These pillars are crucial for BMW to achieve its vision of becoming the leading provider of premium products and services for individual mobility worldwide. Furthermore, BMW's commitment to perfection, a characteristic of German tradition, has established their strong reputation for excellence and continuous innovation.

BMW is a renowned brand known for its quality and strong reputation. They invest heavily in research and development and are open to embracing new trends like green cars. However, their focus on the premium sector limits their growth potential due to affordability constraints. Additionally, producing luxury vehicles in small quantities prevents them from benefiting from economies of scale, leading to high costs.

BMW's production plants in Germany are influenced by high wages, which can be seen as both an opportunity and a threat. The rising oil prices are expected to increase the demand for electric, hybrid, or fuel efficient cars - an area that BMW specializes in. Additionally, new emission regulations will benefit the company as cars need to be more efficient in their oil consumption. BMW already has one of the highest standards in the world and does not require further

investments to develop necessary technology.

Nevertheless, strong competition from top global brands like Lexus, Mercedes Benz, Porsche, and Audi poses a threat to BMW.

BMW, one of the top 10 automakers globally, has potential for growth due to currency fluctuations, an unrecovered economy, and limited strategic integration. Despite its strong reputation and competitive position, BMW still needs to make advancements. The company follows a German tradition of strong leadership and centralized operations based in Germany. Enhancing its cost structure can be achieved by fostering collaboration between functional level managers and business level managers in strategy design. This collaborative effort would enable them to effectively address each other's requirements.

This combination, coupled with decentralized planning, will offer increased flexibility to address dynamic market conditions. However, to address the company's main weakness, which is low strategic integration, BMW should consider seeking agreements or purchasing companies that cater to other segments in the market, such as mid-price.

BMW's decision to enter various market segments is a strategic measure aimed at reducing reliance on a profitable yet limited sector. Moreover, BMW's substantial investment in research and development has established it as an industry leader in environmentally friendly technology. In light of the worsening effects of global warming and pollution, we strongly believe that embracing green technology is crucial for the future. As other nations are likely to follow suit due to growing environmentally conscious consumers, BMW should take the initiative in spearheading this movement.