OPPapers.com

Bmw

BMW

Strengths

BMW is a well-known company with a high status branding that has a very high recognition factor. The company has been strengths in both research and development and design as well as in marketing. For example when it comes to marketing it was a BMW advertisement that was the first e-advertisement that made it to Campaigns 'Pick of the Week' (Doman). However, in a long-term purchase such

as these, there is a need for more substance than just marketing, otherwise the life of

the company would be relatively short due to the nature of the purchase. It is in these

longer-term systems and strategies that we can see many of the strengths of BMW, we

can consider these by starting with the market position of the company.

BMW as well as Mercedes' and a few other companies have managed too

successfully attain a market position where they have a focus on a narrow range of

exclusive cars. These can be seen as aimed at the market place that is not also sensitive

to price, and as such we must argue that the market positioning may be seen as a

strength as there will not be such a reaction if the economic conditions change. The

customers that are in the target group are happy to pay a premium price for what

they perceive as a premium product (Thompson).

This may not be so true of the subsidiary companies that have had different

problems, such as the ill-fated Rover group. However, the core product has remained

strong (Thompson). This may be seen as diversification, and some of the

diversification may also be seen as a strength, for example the purchase of Rolls Royce

where there is a similar strategy, however the range and target market are even more

focussed and exclusive.

The strategy of BMW is designed to be defensive against other car

manufactures, and as we will see when it comes to the section on threats this is a

defensive strategy that BMW have adopted after learning...