BMW and the Automotive Industry Porter Competitve Forces and SOWT

Essay by oel_sabaghUniversity, Master's March 2006

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1. Introducing Industry Life Cycle

Throughout the Firms Industry Life Cycles (ILC) many challenges Faces the Managers that needs to tailor the Firms or Company Strategy , these changes on the Strategy called the "Strategy Fit" , actually managers will depend on certain Input factors ( The Current ILC Challenges ) which are weighted when choosing the best strategy to fit the current ILC (The Strategy for Success ), these Factors that affects managers decisions in choosing the Company strategy depends on the Industry life Cycle phase Introduction, Growth, Mature , Decline, Focusing on Maturing and Growth ILC phases as they are related to the selected companies in this paper, .

As defined by (Thompson and Strickland 2005), Maturing industries Challenges are mainly the Slow Growth in demand which generates more head to head competition, Buyer become more sophisticated more familiar with competing brands with hard bargaining due to repeated purchases, More focus is on Service and Price combination Competition, Challenge of innovating new product feature of find further use of the product current features to keep attracting buyers attention, Globalization competition for new International markets, Pressure on the Industry profit margin.

Strategic Success for Competing In Maturing industries by Introducing a wide selection of features in the products, Enhancing the Industry value chain for example increase use of advanced technology , Integrate the Suppliers by internet to streamline various value chain activities , Drive down unit cost , developing more economical product design , Increasing Sales to present customers using promotions or more services, Acquiring rival firms at bargain price , expanding internationally , Adapting core competency according to customer requirements and expectations and pushing it towards distinctive competency where the firm better then rivals .

2. BMW & Automotive industry

A. Introducing Bayerische Motoren Werke 'BMW'

'BMW was...