BMW Case Study
Bayerische Motoren Werke AG now known as BMW was founded in Germany in 1916. The BMW group began as a manufacturer of engines. In the present day now also manufactures automobiles, motorcycles, software and offers financial services. The case study ‘Exploring Corporate Strategy’ prominently deals with the automobile side of The BMW Group. Within this market BMW trade under three different brands BWM, MINI and Rolls Royce. BMW experienced a failure to gain and grow market share in the early twenty first century the group then embraced an imperative strategy of organic …show more content…
Buyer Power – Operating in the luxury car market bargaining power of buyers is not a critical issue for the organisation. When purchasing a luxury car the lower the price the less luxury is expected. The BMW Group’s effective brand has established an emotional connection with consumers and this loyalty means customers are willing to pay the increased prices for the luxury and brand.
Threat of Substitutes – There is one main substitute which poses a large threat to the car manufacturing industry, this being the use of public transport. The rise in fuel costs and parking payments and restrictions has led to more people opting to use the range of public transport available. This has deterred people from driving and therefore not purchasing automobiles.
Supplier Power – Being an established manufacturer like BMW good relationships will have been formed