Bayerische Motoren Werke B.M.W.

1
Bayerische Motoren WerkeB.M.W.

• Team Diamond Backs
• Spring 2008

2
Agenda

• Company Overview
• BMWs Products
• BMW in the 90s
• Competitors
• BMW in 2000
• BMWs Future
• Recommendations

3
B.M.W. Overview

• First established during World War I
• 1959 facing bankruptcy
• Merger downplayed due to Quandt Family owning 46
  of the company
• BMW automobiles account for 75 of the companys
  overall sales

4
BMWs Main Products

• 3 series which is targeted to young executives
• 5 series is for the established executives
• 7 series is aimed at the luxury market

5
BMW in the 1990s

• Employed a highly skilled labor force which was
  correlated to high costs
• Had a watchful eye on Rover and purchased the
  company
• Rover was not profitable, but they kept the MINI
  segment and sold Range Rover to Ford

6
Competitors

• BMWs major competitor is Volkswagen which is
  Europes number 1 automaker
• Daimler-Chrysler
• Toyota
• GM
• Ford

7
Competitor Background

• VW Audi, Lamborghini, Bentley, Porsche, Bugatti
• GM Buick, Cadillac, Chevrolet, GMC, Pontiac,
  Saab, Saturn, 49 stake in Isuzu, 20 stake in
  Subaru, Suzuki Motors, Fiat, Alfa Romeo
• Toyota Lexus, Scion
• Ford Mazda, Range Rover, Jaguar, Mercury,
  Lincoln, Volvo

8
Profit Per Car 1999
excludes Lexus
9
BMW in 2000

• 18 Sales increase in U.S. sales, outselling both
  Mercedes-Benz and Lexus
• Sales overall rose by 8
• BMWs profit margins are amongst the highest in
  the world

10
BMWs Future

• Cost Leadership Strategy VS. Focus Strategy
• BMW is affective because they strive to
  anticipate change by adapting the technology used
  in their premium autos through features and
  functionalities
• More attention will also be paid to currency
  fluctuations

11
Recommendation

• No merging
• Acquire other niche firms like they did with
  MINI-Cooper
• Use their competitive advantage to take market
  share from Mercedes-Benz and Volkswagen who are
  the main competitors
• The future strategy should focus on ensuring the
  companys long-term success and safeguarding its
  independence

12
Short Film
http//www.youtube.com/watch?vPKYUtUw-8ig