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Submitted by couilld on May 17, 2005
Category: Technology
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Case 2 focuses on the Bayerische Motoren Werke (BMW) Company. My analysis will define each of the company's strengths, weaknesses, opportunities, and threats as brought about within the case as well as through additional research.
The history of the Bavarian Motor Works is a history of innovation, dedication and determination. These achievements are reflected in the BMW emblem, symbolizing a rotating airplane propeller from BMW's early years as an aircraft engine manufacturer. Today, the emblem signifies a global company that annually produces hundreds of thousands of engines, motorcycles, and cars.
May 19, 2003 BMW was about to launch a new version of their already extremely popular 5 series of luxury sedans. The automobile being introduced was BMW's fifth generation 5 series and was expected to initiate BMW's aggressive and extremely ambitious plan of rolling out a new or updated model nearly every three years through the year 2005. CEO Helmut Panke defined his goal as "expanding annual sales by 40 percent over the next five years, to 1.4 million cars, and beat out Mercedes-Benz (DCX) as the number one maker of premium cars in the world. We won't accept the position of number two." Certainly a very aggressive plan, could it be done?
The auto market during the 1990's had begun to shrink as a percentage of total sales. This was particularly evident in the United States where the auto market was hot for some new niches and BMW was finding it costly to make three differently sized cars, namely the 3, 5, and 7 series.
Strengths
Reputation. Having a reputation for luxury, BMW's are smooth and refined. BMW have developed a marquee prized highly by many company executives. The BMW brand also relates well to the domestic owner reinforced by BMW's reputation for quality, reliability and their dealer's attention to service. Hailed as the ultimate driving machines and leading the field in a whole host of classes, BMW are...
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