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Bayerische Motoren Werke B.M.W. Team Diamond Backs Spring 2008. Agenda. Company Overview BMW’s Products BMW in the 90’s Competitors BMW in 2000 BMW’s Future Recommendations. B.M.W. Overview. First established during World War I 1959 facing bankruptcy
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BayerischeMotorenWerkeB.M.W. Team Diamond Backs Spring 2008
Agenda • Company Overview • BMW’s Products • BMW in the 90’s • Competitors • BMW in 2000 • BMW’s Future • Recommendations
B.M.W. Overview • First established during World War I • 1959 facing bankruptcy • Merger downplayed due to Quandt Family owning 46% of the company • BMW automobiles account for 75% of the company’s overall sales
BMW’s Main Products • 3 series which is targeted to young executives • 5 series is for the established executives • 7 series is aimed at the luxury market
BMW in the 1990’s • Employed a highly skilled labor force which was correlated to high costs • Had a watchful eye on Rover and purchased the company • Rover was not profitable, but they kept the MINI segment and sold Range Rover to Ford
Competitors • BMW’s major competitor is Volkswagen which is Europe’s number 1 automaker • Daimler-Chrysler • Toyota • GM • Ford
Competitor Background • VW: Audi, Lamborghini, Bentley, Porsche, Bugatti • GM: Buick, Cadillac, Chevrolet, GMC, Pontiac, Saab, Saturn, 49% stake in Isuzu, 20% stake in Subaru, Suzuki Motors, Fiat, Alfa Romeo • Toyota: Lexus, Scion • Ford: Mazda, Range Rover, Jaguar, Mercury, Lincoln, Volvo
Profit Per Car 1999 * = excludes Lexus
BMW in 2000 • 18% Sales increase in U.S. sales, outselling both Mercedes-Benz and Lexus • Sales overall rose by 8% • BMW’s profit margins are amongst the highest in the world
BMW’s Future • Cost Leadership Strategy VS. Focus Strategy • BMW is affective because they strive to anticipate change by adapting the technology used in their premium autos through features and functionalities • More attention will also be paid to currency fluctuations
Recommendation • No merging • Acquire other niche firms like they did with MINI-Cooper • Use their competitive advantage to take market share from Mercedes-Benz and Volkswagen who are the main competitors • The future strategy should focus on ensuring the company’s long-term success and safeguarding its independence
Short Film http://www.youtube.com/watch?v=PKYUtUw-8ig