A Presentation for Class Work at the University of Lethbridge (Calgary Campus)

1. Bayerische Motoren Werke
(BMW)
Presented by:
Ayonni, Dalvir, Deia, Moses & Nnenna

2. BMW History & Background
⦿March 1916 – Merger
⦿Pre-war
⦿During the war
⦿Post-war
⦿Acquisitions

3. BMW Group’s Segments
AUTOMOTIVE
MOTORCYCLE
FINANCIAL SERVICES

4. BMW Group’s Brand Portfolio

5. BMW Group’s subsidiaries

6. Value-Chain Analysis

7. Global Production Network

8. BMW Group locations worldwide

9. BMW Group locations in Europe

10. BMW Production Plants

11. BMW JOINT VENTURES

12. BMW Brilliance Automotive Plants
Shenyang, China
⦿Operated with Brilliance China Automotive
Holding Limited
⦿Exclusive for Chinese market only
⦿Plants in Dadong and Tiexi
⦿Produce BMW 5 & 3 series, X1 and Zinoro
⦿Engines produced for both plants

13. SGL Automotive Carbon Fibres
⦿Joint venture with SGL Group
⦿Located in Moses Lake, Washington
⦿World’s largest Carbon fibre factory
⦿9,000 tons/year
⦿Used in BMWi 8 electric car

14. BMW Partner Plants
Why use partner plants?
1.Tap/ expand into new
markets
2.Avoid high duties
3.Provide competitive
pricing
4.Be a “local player”
Where are they
located?
1.Kaliningrad, RUSSIA
2. Cairo, EGYPT
3.Jakarta, INDONESIA
4.Kulim, MALASIA
5.Manaus, BRASIL

15. BMW Purchasing Network

16. BMW Distribution Network
Number of Authorised Dealerships:
⦿BMW 3,400
⦿MINI 1,580
⦿Rolls Royce 140
Other Distribution Channels:
⦿BMW branches and subsidiaries
⦿Independent importers
⦿Internet

17. BMW’s 2016 Key Automobile
Markets

18. Business Network
⦿Strategic partnerships through products & services
provided by Alphabet such as
⦿Financing & leasing
⦿Fleet Management & Advanced mobility solutions
⦿Joint venture with TOYOTA
⦿IBM headquarters of IoT in Munich, Germany

19. Automotive Industry

20. Comparison between BMW Group & Daimler AG

23. CSR
-As per BMW website “Corporate Giving”:
BMW group committed over $36 million.
⦿ 47% to education
⦿ 35% to the community
⦿ 18% to the arts

24. Why not BMW?
(1) High cost of production materials
= High cost of manufacturing
= High cost of handling
= high cost of maintenance
(2) Highly priced due to initial factors above
(3) Cost factors in (1) above is transferred to consumers
(4) Unable to hold a strong market share among the top 10 brands for more than
10
years.
(5) Survey in 2016 shows that BMW is not one of the most reliable brand in terms
of the reported number of faults in the United Kingdom -www.express.co.uk
(6) BMW ranks 27th among world brand in reliability (Hard fact data collection) -
www.express.co.uk
(7) BMW ranks 4th among world brand in reliability (perceived data collection) -
www.express.co.uk

25. Why not BMW ?
(Continuation)
(8) Low incentives for final consumers
Automakers use incentives to entice customers
Industry Practices
Automakers provide a host of
incentives:
● Cash rebates
● Lower interest rates
● Loyalty programs
● Subvented leases
Table showing Top five Automobile Industry frontliners on incentives to consumers
Source: Marketrealist.com (Data collected in the United States of America)

26. Why not BMW ?
(9)
BMW Ranks 29th in
“Miles/Kilometres to
worthless” among
industry pairs.
Miles to worthless”: Bar chart showing how BMW compares to top 10 Automobile Brands
Source of Data : AutoRemarketing.com
Source of Chart: Group BMW, University of Lethbridge, Canada