BMW was founded in 1916 in Germany and initially produced motorcycles and engines for aircraft. It produced its first automobile in 1927. During World War II, BMW expanded its factory in 1959 and began building new factories around the world from 1999-2007. It purchased Rover Group in 2000. BMW competes in a global automotive industry dominated by European, Japanese, and American manufacturers such as Toyota, General Motors, and Mercedes Benz. While BMW is known for its high-quality, high-end vehicles, it faces threats from competitors and risks associated with maintaining its brand image and quality standards in overseas markets and subsidiaries. Its long term strategy includes expanding into developing markets with different vehicle styles, reducing unnecessary digital components in vehicles

1. Sun He/Sean
Blake Hunter
Huang Xiaolu/Heloise
Chen Haoyue/Cindy

2. History
 BMW (Bayerische Motoren Werke AG) was
started in 1916
 World War I
 Gustav Otto, Karl Rapp, Franz Josef Popp,
Camillo Castiglioni

3. History
 1923 First
Motorcycle (R32)
 1927 first automobile
invented by Max Friz
Gotthilf Durrwachter
(BMW 3/15)

4. History
 World War II
 1959 expanded factory
 1973 expansion to Rosslyn, South Africa
 1980 first motorcycle with anti-lock brakes

5. History
 1999-2007 New Factories are built in
Russia, China, Austria, Egypt, and India
 2000 Purchased Rover Group

6. Industry Analysis
Three Pillars of the world
Japanese Automotive
European Automotive
America Automotive

7. Japanese Automotive Industry:
high-performance fuel-efficient cars
the leader in the current market
sales increasing every year

8. European Automotive Industry:
 Charming and Attractive
 Outstanding quality
 Leading technological strength
 Real sense of security

9. American Automotive Industry:
 Need a lot of fuel
 The natural and unrestrained style
 Scientific and technological

10. Future Trend
 Paris Motor Show:
●
Started at Dec.11, 1894
●
Intuitive way shows the future trend
High-Tech
●
Satellite position systems
●
Electronic information technology
 Comfort & Convenience
Fuel-efficiency
●
Such as BMW’s MINI Series
MINI Series

11. Global Issue
 High oil price
 Energy-saving
 Product mix adjustment

12. Global Production
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13. Expansion
 “Consumer-hungry” policy
 High-quality
 Production capacity

14. Risk
 Overseas Subsidiary:
– Cannot make sure the high-quality
– image of BMW’s brand
– Affect the local manufacture

15. Competitor Analysis
General Motors
 Established in 1908
 2nd largest Automotive Corporation
 Total Revenue- 181.122 Billion (2007)

16. Toyota
 Largest Automotive Corporation
 Japan Based Corporation Started in 1936 by
Kiichiro Toyoda
 Total Revenue’s 202.86 billion (2007)

17. Honda
 5th largest automotive corporation
 Japan Based
 Total Revenues 119.801 billion (2007)

18. Mercedes Benz
 Daimler Benz AG, Daimler Chrysler AG
 Merged with Chrysler
 99.399 billion euro
 Largest German Competitor

19. Company Analysis
Strength
 Long history & brand image
 High-end products
 Abundant capital and technology
 Clear and positive direction

20. Weakness
 Weakness in localization strategy
 High price
 Markets in developing countries
 Brand appearance

21. Opportunity
 Developing countries’ markets
 Non-oil-use products
 Online services

22. Treats
 Threats from competitors
 Lack of oil
 Increasing number of traffic accidents
 Fake BMW
Fake BMW

23. Short-term
 Rebuilding Brand Image in the one or two country
• Join more public benefit activities
• Attention more Charities
 Hold a training for drivers
• Old men/women
• Somebody want to conversance BMW
• Potential consumer

24. Long-term
Build a art of park in the big city of world
• Let people real know what is
BMW
• Build a brand image in
everyone’s mind
• The best drumbeating
• The company culture will be
step up a new era
NIKE Park

25. Long-term
 Produce different style cars
• Sports style cars
• Business style cars
• Family style cars
 Reduce unnecessary digital
equipment.
• Decrease accident
• Retro drive

26. Conclusion
 Focus on local market segments
 Build more factories of component
 Emphasis on government and media relations
 Employ the best marketing manager
 Find a good broker
 Doing good job of market research before new product entry different
markets

27. Thanks!