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BMW Group - Arber Hoxhallari


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The ultimate driving experience.

Published in: Automotive, Technology, Business
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BMW Group - Arber Hoxhallari

  1. 1. The Ultimate Driving Experience. Presented by: Arbër Hoxhallari
  2. 2. History 1916 - Establishment of BMW. 1941 - BMW in World War II. 1951 - The BMW 501. The first post- war BMW automobile. 1969 - Motorcycles production. 1973 - The BMW headquarters and the Museum. 1973 - Worldwide creation of sales subsidiaries. 1994 - BMW goes to the USA. 1998 - Rolls-Royce comes to BMW. 2007 - Opening of BMW Welt. 2007 - Takeover of the Husqvarna brand. 2007 - Strategy Number ONE.
  3. 3. Mission Statement • The BMW Group is the world’s leading provider of premium products and premium services for individual mobility. • BMW Brand - "The BMW brand stands for one thing: sheer driving pleasure. Sporting and dynamic performance combined with superb design and exclusive quality." • MINI Brand - "The MINI brand wins hearts and turns heads. MINI is refreshingly different: extroverted, spontaneous and in every respect something out of the ordinary." • Rolls-Royce Brand - "For over 100 years, motor cars of the Rolls-Royce brand have stood for truly outstanding engineering, quality and reliability."
  4. 4. Vision Three brands, one vision - to become even better. Thanks to our uncompromising focus on premium, BMW Group automobiles and motorcycles inspire more people around the world today than ever before.
  5. 5. Values  SUSTAINABILITY MANAGEMENT - Sustainable operations enable us to leverage new opportunities, minimize risks and overcome social and business challenges.  PRODUCT RESPONSIBILITY - For us, product responsibility begins at the vehicle development stage and continues throughout the value chain, with customer support provided until long after the utilization phase.  GROUP-WIDE ENVIRONMENTAL PROTECTION - We aim to be the most resource-efficient carmaker in the world.  SUPPLY CHAIN MANAGEMENT - We aim to work with our suppliers to firmly establish sustainability throughout our supplier network.  EMPLOYEES - Attractive jobs, diversity, equal opportunities and the well-being of our employees are of the utmost importance to us.  CORPORATE CITIZENSHIP - We place the focus of our Corporate Citizenship activities on those areas in which we can apply our core expertise to achieve specific and measureable improvements.
  6. 6. Goals  Implementation of its successful Strategy Number ONE.  Launching its innovative BMW i3 and BMW i8.  Around 2000 new hires in 2013.  Building the most reliable vehicles.  Over 1.5 million vehicles sold every year.
  7. 7. Strategic Capabilities • Brand reputation. • Technology. • Worldwide presence. • Skilled workforce. • Huge budget for R&D.
  8. 8. Comparison BMV •Founded in Munich in 1913 •1,380,384 cars sold in 2011 •105,867 employees in 2012 •Revenue 76,8 b € in 2012 Audi •Founded in Zwickau in 1909 •1,455,000 cars sold in 2012 •60,000 employees worldwide •Revenue 48,8 b € in 2012
  9. 9. Comparison BMV •Founded in Munich in 1913 •1,380,384 cars sold in 2011 •105,867 employees in 2012 •Revenue 76,8 b € in 2012 Lexus •Founded in 1989 •467,566 cars sold in 2012 •Revenue 16,6 b € in 2012 •division of Toyota Motor Corp.
  10. 10. SWOT Analysis Strengths Brand image Quality products High employee productivity Motorcycle as a niche product Innovation Weaknesses Poor performance in Asian markets High cost structure Less strategic alliances Male dominated High maintenance cost
  11. 11. SWOT Analysis Opportunities Growth in Asian markets Rising Green awareness Increasing fuel prices Expand brand portfolio Threats High competition Currency risk Green awareness Environmental protection regulations Change in oil prices Recession in EU countries
  12. 12. TOWS Matrix O T S •Focus on BRIC Countries using its strong brand image •Considering green awareness to invest in hybrid and electric cars •New innovations to match EU vehicle regulations •Strong brand image helps BMW to overcome recession W •Build new production facilities in Asia to lower wages •Expand brand portfolio to attract young people and women •High competition in Asian countries •Recession can decrease sales of BMW expensive cars
  13. 13. Porter’s 5 Forces • Threats of new entrants: Low The threat of new entrants in case of automobile industry is low because a very large capital is required to build a manufacturing plant. Also it takes a long time for new entrants to get a reputation and become a strong competitor.
  14. 14. Porter’s 5 Forces • Threats of substitutes: High BMW has the image of a powerful and luxurious car and is positioned in the same range where exist many substitutes for it like Audi, Mercedes, Lexus, Porsche etc.
  15. 15. Porter’s 5 Forces • Bargaining power of buyers: High Here the bargaining power of buyers is high because the consumers can decide which product to choose considering the price and environmental issues.
  16. 16. Porter’s 5 Forces • Bargaining power of suppliers: Medium The bargaining power of suppliers is high in this industry as the suppliers can dedicate the price for the raw materials, but also a long term collaboration creates a trustful and stable environment between them.
  17. 17. Porter’s 5 Forces • Competitive rivalry: High Competitive rivalry is high in this industry. The dominant US and European companies are also facing firm competition from the Asian companies in the same markets.
  18. 18. Pestel • Political • Environmental regulations. • Taxes and government’s foreign policies. • Economical • Recession in EU and many other countries • Decrease in the exchange rate if euro. • Economic downturn in the US market. • Buying power in the developing economies like India and China. • Social • Changes in the customer preferences to fuel efficiency cars. • Changes in buying pattern of the consumers due to recession. • Environmental issues.
  19. 19. Pestel • Technological • Increase in use of technology to gain a competitive advantage. • Use of innovative design • Modifications on technology to protect environmental pollution • Environmental factors • Increasing awareness on global warning. • Shift in consumer’s preferences towards use of eco-friendly cars. • Legal factors • Restrictions and pollution norms set up in EU and US. • Regulations for imported cars in some countries.
  20. 20. Key Drivers of Change From the PESTEL analysis and the Porter’s 5 forces, the key drivers of change are: • Consumer preferences. • Use of design as a great asset. • Technological advancements. • Environmental issues. • Brand management.
  21. 21. THANK YOU ! Questions?