"Bavarian Motor Works" Case Analysis

Essay by geoffreykunUniversity, Bachelor'sA-, May 2004

download word file, 16 pages 4.3

Problem Statement:

BMW is the upper class car manufacture in the world. It has its best branding strategy and technology. However, due to the entrance of Japanese car manufactures in U.S. auto market, there are basically two problems that BMW needs to fact in order to stand its position and status in U.S. auto market. First of all, Japanese auto companies create high-performance cars to wrestle the luxury car market, and they are cheaper price and lower cost of maintenance. Secondly, Japanese auto companies have serve the best quality of service and the up-to-date technology to compete German cars.

Executive Summary:

In order to rectify the problems that Japanese companies brought, BMW must take some actions regarding this. It needs to put a much greater emphasis on the quality of customer service. This would help BMW to have the long-term relationship with customers, which can gain the sustainable competitive advantage.

Company Background:

Bavarian Motor Works - "The Ultimate Driving Machine" is also known as BMW, and it is the English translation from Bayerische Motoren Werke. "Bayerische Motoren Werke AG, German manufacturer of automobiles, motorcycles, and aircraft engineer. Based in Munich, Germany, the company is the leading auto exporter in Europe. The English translation of the company's name is 'Bavarian Motor Works'" (www.usedcarmart.co.uk/bmw.php)

It was founded as an aircraft engineer manufacturer in 1916. BMW has been dramatically affected by social, political, technical, and economic change. The company enjoyed success during World War I. After the war ended, the Treaty of Versailles forced severe restrictions on aircraft construction. In an effort to survive, BMW used acquisitions and joint ventures to move into the production of motorcycles and automobiles. In order to compete with industry power, BMW introduced its building block concept of auto development. Based on a family of automobiles...