Strategic analysis of BMW

Essay by marco23University, Bachelor'sB, October 2004

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Strategic Analysis Assignment

BMW Automobiles

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28 November 2003

Brief introduction to the automobile industry in 2003

In 2003, International automobile markets reflected varying economic conditions.

The performance of a number of European markets fell short of expectations. In Germany in particular, the on-going political debate created a mood of uncertainty for consumers, with a consequent negative impact on demand.

The global car market is facing decline in 2003, led by market falls in North America and Western Europe. However, other regions of the world - led by East Asia - are seeing further car market expansion this year. In 2004, projections for livelier economic growth underpin the resumption of car market growth in Western Europe and North America. However, the trend towards an increasing share of global car demand being accounted for by emerging markets will continue.

The decline is brought about by lower car demand in North America and Western Europe, both relatively mature car markets that have been adversely impacted this year by high energy prices and fragile consumer sentiment .

The automobile industry is becoming more and more competitive, with 6 major Groups which have been formed in the last 3 years. From the table below, we can see who these major Groups where in 2000 and what they where aiming for.

Source: PriceWaterhouseCoopers

These are the Groups with which BMW will have to compete in the years to come and form a particular threat because of their dimensions.

Strategic Analysis for BMW

Strategy defined:

"Strategy is a perceived pattern in actions past or yet to come. It is a label applied to patterns in action"

How do we evaluate a strategy?

"Strategy evaluation requires a consideration of both current and likely future results against the resources committed to the strategy"

This is...