Swot Bmw.docx

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BMW is one of the most valuable brands all over the world , In 2015, BMW was the world's twelfth largest producer of motor vehicles, with 2,279,503 vehicles produced.

High level of vulnerability to the future economic crises due to premium pricing strategy. High prices of its products is its most important weakness. However, since it is a luxury car brand, BMW products’ prices are bound to be high.

Expanding Brand Portfolio. BMW can expand its product portfolio. It will increase the variety of products available under its brand name.

BMW have a powerful global strategy; the company have been able to established slightly different strategies in the different markets. For example, in 2010 while BMW of Europe was participating in F1 sponsorship, BMW of North America focused on yachting. In 2012 BMW global strategy to reinvigorate the tagline “joy”, whereas BMW of North America planned on adopting the slogan “The ultimate driving machine”.

Weak BMW brand portfolio with only three brands: BMW, MINI, and Rolls Royce. In 2015, the company sold only 338,466 models of its MINI cars and 3,785 models of its RollsRoyce cars out of its total 2,247,485 vehicles sold.

Growing demand of environment friendly vehicles. BMW vehicles are known to be environment friendly which is a major advantage. The demand for such vehicles around the world is growing. Governments encourage environment friendly models through subsidies.

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Increasing competition in the worldwide automotive market. Larger Automotive companies can survive because they are able to produce the industry threshold of more than 1 million units per year. Volkswagen and Toyota Introducing their Lexus Luxurious Model. Increasing government regulations may raise the costs. Government are encouraging fuel efficiency initiatives There is always a risk that such environmental initiatives may increase production costs for the car manufacturers and that these costs won’t be able to be recouped. Also there is a message from some government to use the bus and the metro instead of cars to reduce pollution.

Strong Engineering Processes operating under strict BMW brand guidelines to maintain quality in 25 sites across 14 countries on five continents.

One of the Corporate Social Responsibility of BMW is to reduce the global footprint , In the past five years , the Spartanburg Plant had lowered energy consumption by 48 percent , halved water consumption , reduced CO2 emissions by 44 percent and waste output by 65 percent. BMW company have strong innovation skills, involving mass customization, customers were able to customize their cars before buying it, choose the interior, exterior and audio system and other great features. Not creating a car to offer to costumers ; Take customers and build their own car. Excellent Customer Service, providing a video to customers form the beginning of assembling the car to the end with all the details and

Lack of operational cost prices are bound to be high. The production costs at BMW compared to its rivals are also high. It is because it invests a lot in technology plus employee training and management. Few Strategic Partnership. A considerable weakness associated with BMW relates to the lack of strategic partnerships with other organizations within and outside of automobile industry.

Make operational partnership with local providers. These partnerships can help it increase its hold on the less developed markets. BMW can also reduce production costs with the help of local brands.

US market may slow down or decline. According to Ford and General Motors, new vehicle sales will slow down or even decline over the next few years due to the oversaturated market

BMW geographical expansion and the profits it is gaining other than the European Market such as USA market , will create new opportunities for the company to find new ways of expanding.

The increase of fuel prices. BMW's car is known to be a lot higher in consumption of fuel. People might be looking for economic cars in these times were fuel is getting more expensive.

specifications of the car for customers to be involved in the production process of their cars. “Dream it , Build it , Drive it “