BMW's Strategic Management

Bayerische Motoren Werke AG (BMW) is a German manufacturer of automobiles and motorcycles worldwide. With all the three brands, BMW, Minuscule and Rolls-Royce, the BMW Group has focused strongly on the prime sector of the international auto market. BMW Group is committed to the highest in quality for any its products and services. The strategic objective is plainly described: The BMW Group is the leading company of high grade products and prime services for specific mobility.

As mention in the event by the mid 2000s almost all car make provide good quality automobiles, so Quality was no longer issue for consumers and for that reason quality had not been issue for company also to accomplish competitive edge. But consumers found hardly any ways to tell apart among available auto brands and car model. Most brands were set up and reliable, where vehicles were well developed with quality. For example- from the overdue 1990s, the entire quality of US automobiles had upgraded 24 %. 'The quality difference between your best and most severe US automobile, that was 212 defects per 100 vehicles in 1998, has reduced to 53 defects. ' Now consumers differentiate the auto in conditions of brand image, appeal and design. Now car manufacture had given focus on selling point of their brand and models. The automobile industry invests a lot of money in high-tech design laboratories, art work studio room and top-level designers. Powerful brands made small gains, rather than losing market share. BMW achieve competitive advantages by brand building and founded emotional relationships between customers. BMW conveyed the image of the "ultimate travelling machine", even to those consumers who want a car with small engines. These models take good thing about connections between customers to its mom brand.

The PESTEL is an instrument to examination macro environmental affects in Organisation strategy: PESTEL stands for Political, Economical, Sociable, Technological, Ecological, and Legal factors. There are various global factors that have the significant effect on all organizations working in the automobile industry. In case of BMW as an international auto player, PESTEL is very important tool to identify the structural tendencies, market situation and develop technique to gaining competitive edge in changing world. First - & most important - of most, the crisis in the gulf region, the unstoppable increase of oil prices and the decrease of global oil reserves show the industry's limitations. New technology will be needed in the near future to swap the oil energy. Toyota, DaimlerChrysler, Honda and Volkswagen are craving for alternative energy sources to help make the auto ecologically competitive with other means of transportation. The regulations on exhaust fumes get tightened about the world to diminish the emission of skin tightening and as a result of increasing pollution. The legislative situation carries a lot of treaties and legislation where manufacturers have to abide. Documents like the Kyoto protocol have worldwide effects, e. g. on new engine-developments. Politically, in Germany for example, the Ecological Taxation System augments the fuel prices which causes the consumers' demand for renewable energy resources. High investments have to be made in Research and Development and discover a highly effective and useful technology. The Hybrid Technology will end up being the futures' solution to the condition and the first company that makes the technology appropriate earns the profits of advancement. Socio-demographically, automobiles developed into lifestyle-products and position symbols, transferring a graphic and families getting several autos are no rarity.

BMW might be having different type of future challenges. It had been series of factors behind of BMW success they mixed to maintain competitiveness. BMW known for powerful, luxurious and reliable cars but it's not exception, Mercedes and Lexus touch competitor for BMW. In term of technology BMW is not innovator in innovation. Problems from other company's invention will be very significant. Potential future vehicle technologies include new energy sources and materials, which can be being developed to make automobiles more lasting, safer, more energy conserving and less polluting. Automobiles are being developed in many different ways. With growing gas prices, the continuing future of autos is leaning towards energy efficiency, energy savers, hybrid vehicles, electric battery electric vehicle and the fuel cell vehicle. Several alternative gasoline vehicles might be utilized in future vehicle, including electric vehicles, hydrogen autos, and compressed-air autos. Could be in future people prefer eco-friendly automobile somewhat than powerful machine.

Economic recession causes price competition which impacts the complete industry. BMW is still more than a niche player, contending with a handful of models. Also, their size was still humble when compared with that of the best international player and kept vulnerable to acquisition if the Quandt family were to decide to dispose of a sufficient amount of their stocks. BMW still behind in some fast growing car market as India mercedes take lead, in future it is might be difficult to BMW for take market talk about using their company rivalry. In some market BMW behind Lexus. In a few market segment rivals were volume companies with lower costs than BMW. Would BMW have the ability to reap price premiums large enough to keep their profitability level?

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