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Bmw And The Automotive Industry Porter Competitve Forces And Sowt

2149 words - 9 pages

1. Introducing Industry Life CycleThroughout 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 ...view middle of the document...

BMW & Automotive industryA. Introducing Bayerische Motoren Werke 'BMW''BMW was found in 1913 by Karl Rapp as an aircraft engine design shop. After WWI, it started building motorcycles and then expanded into motor vehicles industry during the 1930's. After WWII, the company suffered again but survived later when Herbert Quandt took over the control in 1959. The company rapidly grew considerably and reached a market value of nine billion U.S. dollars in 1979.'(BMW 2006, Corporate)However, it was still small compared to the big U.S. automotive manufacturer. Profits continued to grow up quickly. By 1995, BMW had (34) wholly owned subsidiaries,(14) in Germany and (20) around the world, BMW is not only a car maker; they are one of the world leaders in motorcycle production, aircraft engines, in addition to marine engines. BMW has a long history of providing the best engineering possible in the market.B. BMW External Environment Competitive Forces Porter's 5 Forces and Resources Competitive Positions (SWOT)Strengths with respect to Rivalry among Competing SellersBMW is having a repetition of building a driving machine that respond faithfully and enjoyably to their driver's commands while also providing the safety, style, quality, reliability, and durability that help make long - term ownership. And their dealer's attention to service. Leading to a strong BMW valuable 'Distinctive Competency' Facilities. On the other hand BMW's factories are considered very flexible and most productive in Germany utilizing the latest technology in each phase of it's value Chain; its suppliers are the industry's best; and the workforce among the industry's most talented.BMW attractive product variations were a very good source of strength , for example the MINI Car released with navigation systems and sunroofs along with BMW brand Quality leading to unexpected increase in the MINI sales , also BMW is Enhancing the Value Chain Activities (Specially The Supply Chain) Using the Shared components. BMW is able to keep overall costs down by using shared components across its similar-sized cars. For example, the 5 Series shares components with the X5 and the 6 Series, and the 3 Series shares with the X3, and the 1 Series.All the above Strengths and Many others has places BMW in a good position with respect to The major Strong players in Terms of Performance, Features, dealer networks , Foreign Markets, for example Lexus, Mercedes-Benz, Audi, and even Cadillac .Where Rivalry among these competitors increases when they Competes Globally in US car market, Europe and ,Eastern Europe and South-east Asia, But BMW Strong Brand is more costly to be Switched Specially for Quality Conscious Customers which makes strong competitors .Weaknesses While Moving towards Globalization and Potential Entry of new CompetitorsLooking too far ahead too fast Rolling out a new or updated model nearly every three months ,may shift emphasis on getting a new model to market rather than focusing on...

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