Case on market demand analysis ppt bec bagalkot mba

1. PRESENTATION NO :-
Case on Market Demand Analysis

2.  FACTS
 BMW, the German car manufacturer, it merged with the
British Aerospace for high productivity improvements
and profit maximization in car business which it
includes the brands such as Land Rover, mini and mg.
 In March 2000 the company completely destroyed due
to low sales of rover’s car.
 The Rover car share of the UK car market was
completely declined, because the share was decreased
from 40% in 1960 to 5% in January 2000.

3. Problem of the case :
The main problem of this case is
 BMW’S Executives blunder.

4.  Cont………….
 There is loss of 800 million pounds to the
company.
 Rover car became a burden or loss to BMW
rather than profit gaining source

5. Qn no1:Discuss the factors
responsible for the decline of
Factors affecting decline for rover sales:
rover sales?
 Decrease in demand.
 Buyer’s expectation about falling price.
 Over supply.
 High stock inventory
 Lack of economy.
 High degrees of uncertainties.
 BMW’S executives blunder.

6. Q2 Discuss the consequences of
business for mass production car
firms in the over capacity
discussion of world car market.
If there is mass production in world car
market , the consequences are
 High stock inventory.
 Lack of cost economy.

7. CONCLUSION
As car manufacturers, BMW before adopting rovers car in
them,
It is compulsory to do market analysis of Rover car.
It is equally important to do “DEMAND FORECASTING” that
what will be the demand for the rover car in future.
.Lack of market strategy