In October 2018, BMW was forced to recall at least 268,000 vehicles in the UK market because of a potential fire hazard. This is one of the most important strengths behind BMW. China has emerged as the leading vehicle market of the world. The focus of BMW is on some exclusive areas including driver safety as well as autonomous driving and environment friendly vehicles. Its focus on style has also helped it drive its brand recognition high. Its focus is upon environment friendly vehicles and autonomous driving to offer its customers the most luxurious driving experience in the entire industry. BMW invests  a lot in creating some of the world’s best premium vehicles including cars and motorcycles. In Germany and UK, as well, the company grew its market share. BMW is the core brand of the group and caters to a very large range of customers’ needs from fuel efficient vehicles to high performance car models. BMW is among one of the leading vehicle brands which enjoys very high level of brand recognition. To help you gain insight into the company’s success, here is the BMW SWOT Analysis: Tell us what you think? SWOT Analysis of Volkswagen Motors 2019. The brand is known to be versatile and has vehicles that are in the ultra-premium portion just as autos which are essentially reasonable to the extent extravagance vehicles go. The company is investing in research and innovation to bring safer vehicles for its customers. August 23, 2020 by Abhijeet Pratap. Copyright © 2020 Business Strategy Hub. BMW has maintained the image of a safe and responsible brand of cars and motorcycles in the industry. The report illustrates the application of the ma22jor analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on BMW Group . However, 2019 onwards demand could dampen a bit according to sources. Growing operating expenses create pressure on the bottom line and can reduce the net income of a brand. ... BMW, Chevrolet, Hyundai, Tesla, Mercedez. Gross Profit also reduced from €19,953 million in 2017 to €18.56 billion in 2018, a decline of 7% (Annual Report, 2018). The company has created a new plan for future with core focus upon profitability, growth and futuristic innovation. [ Source 18 ] Stringent Regulations: As governments adopt stringent laws to combat emissions, it is very easy for any automaker to get in trouble. This has made a BMW a huge brand name not just attracting consumers, but also a … One core aim of these partnerships and collaboration agreements is to share expertise and grow the pace at which new innovations are brought to the customers. That’s why it might take the brand 2 more years to bring a car equipped with highly automated driving. The automobile industry has grown highly competitive. The brand has got a large product portfolio which includes BMW, Mini and Rolls Royce cars as well as motorcycles. More than 15,000 people were working in research and development  function for the company at 16 locations in 15 countries. BMW motorcycles are also made for the premium segment of customers. Stylish BMW cars have found heavy popularity among the higher end customers in all the leading Western markets. In 2020, the company plans to release the first fully electric BMW ix3. These partnerships are helping the company strengthen its competitive position globally. Customer is at the centre of everything in the 21st century and brands are now more cautious than ever about customer experience and customer engagement since these factors affect customer demand. In this way, the operating expenses of the brand have kept growing larger each year. 2nd Nov 2020 Swot Analysis Reference this Tags: SWOT Analysis BMW SWOT Automotive. However, now the main focus of BMW is on profitability rather than on sales volume. BMW has managed two major partnerships in China to grow its share in the local market. The automobile industry is going through a phase of transformation driven by technological growth and changing customer trends. A global and strong  manufacturing and distribution network has helped BMW maintain a strong global presence and cater to consumer demand and changing trends with efficiency. eBay facilitates business to consumer and consumer to consumer sales through their websites. Table of Contents. The company is going to retain its focus on profitability rather than sales volume. The automotive industry is experiencing higher competition and despite that BMW has maintained its growth momentum. BMW has also entered into a joint venture with Brilliance China Automotive Holdings Ltd. in China to form the BMW Brilliance Automotive (BBA). BMW has created a high expectation putting them in the spotlight. Also read: SWOT analysis of BMW. The need for higher safety as well as regulation by the government are also driving expenditure on research and development. BMW SWOT Analysis 1916 BMW or Bayerische Motoren Werke as it is known in German, starts building engines and planes (BMW Group, n. d. ). Large Product Portfolio : Volkswagen owns 12 brands. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. With advancing technology, the number of opportunities before the automobile brands have also grown. The company invests in its employees in several ways including training as well as special benefits like company shares. However, the competition in the industry is also high and brands need to invest in research and innovation to maintain their competitive position. These things have helped the brand grow its vehicle sales. 1. The electrified vehicle segment holds immense potential and it is why the company has planned to grow its range of electric vehicles aggressively and meanwhile introduce plugin hybrid variants of its existing models. Research and Development 3. Forbes places BMW brand as the 2nd most valuable automotive brand in the world, worth US$ 28.8 billion. eBay was formed by Pierre Omidyar during the year 1995 and it has eventually become a distinguished success story of the dot-com bubble. For a brand like BMW it is affecting its brand image. This article talks about the BMW Market Segmentation story. (8 December, 2016). In the future, BMW must try to control operating expenses. Order the complete BMW SWOT & PESTLE report or view the free sample complete report on our site now! The premium pricing strategy of the brand is related to its premium brand image. One of the core focuses of BMW is to bring the cars of the future to the roads which are automated, sustainable and connected. China is also seeing increased sales of BMW cars driven by growth in popularity of the German car brand. SWOT ANALYSIS OF BMW Strength: BMW invests a lot in its human capital to keep its workers motivated and engaged. They are Brexit and the trade wars. Due to higher stability in the global economy, sales performance of BMW cars in various regions of the world was also stable. BMW has also brought a nice range of hybrid vehicles to the market to cater to growing demand for cars with lower emissions. Auch die starre Konkurrenz von anderen Unternehmen im Premiumsegment wie Audi und Mercedes ist ein entscheidender Faktor bei den Risiken. INTRODUCTIONSTRENGTHSWEAKNESSESOPPORTUNITIESTHREATSCONCLUSION. BMW’s main Strength is their brand name, high budget, their highly skilled labour and advertising. BMW is also experiencing higher competitive pressure which can lead to decline in market share. 3 of the locations belong to the BMW joint venture in China known as BMW Brilliance Automotive (BBA). The brand can be recognized anywhere in the world by its stylish logo. BMW is obsessed with striking a perfect balance between. Company: BMW Group Founders: Camillo Castiglioni, Franz Popp, and Karl Rapp Year founded: March 7, 1916 CEO: Oliver Zipse Headquarters: Munich, Bavaria, Germany Employees (FY2019): 133,778 Tpye or Private Sector: Public Annual Revenue (2019): US$115.83 Billion Profit | Net income (2019): US$5.58 Billion, Products & Services: Automotive | Motorcycles | Financial Services | Design Works   Competitors: Toyota | General Motors | Volkswagen | Chevrolet | Daimler | Hyundai | Renault Nissan | Ford | Fiat Chrysler Automobiles | Zorya | Koenigsegg | Daimler AG | Honda | Tata Motors. SWOT analysis of BMW. 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