BMW

Jinwoo Bae / Junyoung Eum

Sungwan Park / Sung Yon Lee

About BMW

BMW stands for Bayersiche (Bavarian) Motoren (Motor)

Werke (Works)
BMW is worlds most selling luxury vehicle company
Originated with three other manufacturing companies i
n 1916
Rapp Motorenwerke
Bayerische Flugzeugwerke5
Fahrzeugfabrik Eisenach

BMW became an automobile manufacturer in 1929

The first vehicle is BMW Dixi
In 1939, BMW was suspended car production by Germa
n Government WWII

BMW SWOT
STRENGTH

WEAKNESS

1.
2.
3.
4.

1.
2.
3.
4.

Strong Market Penetration

Brand Reputation
Creative Automobile Design
Race Competition

High Cost Structure

High Cost Maintenance
Weak Brand Portfolio
Perception of High Prices

OPPORTUNITY

THREAT

1. Innovation
2. Green Vehicle, Hybrid
3. New Market, Asia

1. Intense Competition
2. Rising Raw Material Price

Strength / Weakness

Expended Target Customer

MINI (2000)
BMW
Rolls-Royce(2002)

Sales
Volume

2008

2009

2010

2011

2012

BMW

1,202,239

1,068,770

1,224,280

1,380,384

1,540,085

MINI

232,425

216,538

234,175

285,060

301,526

RollsRoyce

1,212

1,002

2,711

3,538

3,575

Total

1,435,876

1,286,310

1,461,166

1,668,982

1,845,186

Strength / Weakness
10,000

9,167

9,000

8,149 8,110

8,000
7,000
6,000

4,921
4,471
4,204
4,000
3,471 3,263 3,692
3,000

5,240

5,000

2,000
1,000
0

2008

2009

2010

2011

2012

Capital Expenditure
(in million)
Operating Cash Flow
(in million)

Opportunity / Threat

New Market
Green Vehicle
Asian Market

Electric Vehicle
(US)

2011

2012

2013 (JanOct)

Number of units
sold

284,064

487,48
0

501,369

Market Share (%)

2.23%

3.38%

3.90%

Asian Market

2011

2012

Number of units sold in Asia

375,45
2

493,39
3

Number of units sold in

China

233,63
0

327,34
1

Percentage (China)

14.0%

17.7%

Percentage (USA)

18.4%

18.9%

Innovation

http://www.youtube.com/watch?v=2_ug4L3tA9k

Opportunity / Threat

Intense competition
Ex) Audi, Mercedes-Benz, Lexus, Volkswagen

Rising raw material prices

Ex) Steel, Rubber, Labor, etc

Issue, BMW needs to face

Are Mercedes Benz and Audi still BMWs competitor

?
BMW was crowned for 2 consecutive number one premi

um automaker

Who should BMW compete against then?

Porsche? Ferrari? Aston Martin?

vs.

Recommendation

Need of the even number series better awareness

Most of Porsche vehicles are two-door / coupe.

Difference in designs between Sedan and Coupe

To compete with higher brands, BMW needs to introduc

e a new innovative design.

Work Cited
"SWOT Analysis of BMW." BMW SWOT Analysis 2013. N.p., n.d. Web. 18 Nov. 2013.
(http://www.strategicmanagementinsight.com/swot-analyses/bmw-swot-analysis.html)

"IKN." : 30.10.11. N.p., n.d. Web. 19 Nov. 2013.

(http://incakolanews.blogspot.com/2011_10_30_archive.html)

"GOOD CAR BAD CAR." Mercedes vs BMW vs Audi. N.p., n.d. Web. 19 Nov. 2013.
(http://www.goodcarbadcar.net/2012/05/mercedes-vs-bmw-vs-audi-sales-2012.html)

http://www.bmwusa.com/
http://www.rolls-roycemotorcars.com/history/
http://www.autospies.com/news/Photos-Comparison-2008-BMW-3-Series-vs-2009-3-Series-Facelift
-33393/
http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/unternehmen/historie/meilensteine/meile
nsteine.html
http://www.wired.com/autopia/2009/02/chris-bangle-le/
http://answers.yahoo.com/question/index?qid=1006031904010
BMW annual report in 2012 /2011
http://Porsche.com/usa/
Promoting Electric Drive Techonologies Andinfrastructure. Electric Drives Sales. Np., n.d. Web. 19 N
ov. 2013 (http://www.electricdrive.org/index.php?ht=d/sp/i/20952/pid/20952)