BMW has been the largest automobile company worldwide since its founding. It was influenced by political, economic, and socio-cultural macroenvironmental factors. BMW faced competitive rivalry from other luxury brands and substitution threats from alternatives like boats, motorbikes, and competing car models. In 2002, BMW's new CEO adopted an internal growth strategy aiming for 40% annual sales increases. BMW expanded into new markets like the US for cheaper labor and developed existing and new products globally. BMW's long term strategy focused on innovative development to ensure continued success.