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SWOT BMW BMW AG (an acronym for Bayerische Motoren Werke AG, or in English, Bavarian Motor Works), is an independent German company and manufacturer of automobiles
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Submitted by babyboy_lb10 on April 23, 2007
Category: Business
Words: 1061 | Pages: 5
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BMW
The topic of our group was about the luxury brand, BMW. Everyone knows BMW to be a luxury car that the upper middle class tends to buy. BMW has set a high standard for luxury vehicles to come for many reasons. For example, their continuous innovations to their cars, their style, and their reputation with their customers and non-customers. Our paper will talk about the industry structure, structural analysis, dynamics, and competitor analysis.
Our first discussion will be about the industry structure. The bargaining power of the buyer gives us an idea of how the customer feels or the process they go through in order to purchase their BMW. Such questions that are asked are: Is the consumer really spending what the car is actually worth? Buyer volume (how many people are actually purchasing this brand of car and what does this mean for the buyer)? The answers to these questions can be answered. First, we have to think about the status that the customer is gaining by purchasing a BMW. A BMW stands for prestige and wealth, so when it comes to spending multiple thousands for this car, that is a great deal in the public's and consumer's eyes. And with the reputation of the company, people believe that they are getting their money's worth because of the quality of the products that go into making the product. There was a time when the buyer volumes of BMWs were pretty high. But nowadays, the buyer demand has dropped because of the competitors and the consumer demand for something different or more luxurious. To buy a BMW now would not mean anything because there are so many other brands that are added to the industry, for instance, Mercedes Benz, Cadillac Escalade, and Lexus just to name a few. BMW is still the car that symbolizes money, but the customer may not be gaining as much prestige as they would have been a while ago.
There are also things that threaten the BMW Company, like substitutes and newer entrants....
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