New Strategies Of Bmw

Submitted By Ishitva-Ajmera
Words: 323
Pages: 2

New Strategies

Increased Product Variety

Should be offered a huge menu of options.
Colors, engines, and configurations.
Each customer can have a unique car.
The 3-series, for example, came in four different models (a two- and four-door sedan, a station wagon, and a convertible);
Each was available in 40 different body and style choices, customized with options for up to 14 different countries.
1990, BMW was making most of its cars to order.
New Regensburg plant.
Commencing production in 1986, the plant was designed and automated to permit maximum flexibility: each of several hundred possible versions of 3-series models could be produced in an efficient lot size of one. The Regensburg plant produced 420 cars/day, but made the same car type only once every month.

More Frequent Product Introductions

On average, BMW introduced a completely new model line (or a new “series”) every eight years, with development lead time (from concept to market) averaging six years.
Existing model lines were totally redesigned every four years, generally involved substantial changes to the car’s interior and exterior styling, and significant engineering changes in the engine, suspension, and other critical subsystems.
Lead times for major redesign programs were also about six years.
Japanese competitors launched new and redesigned products in rapid succession, with lead times of approximately four years.
For example, Lexus and Infiniti were expected to introduce a