Analysis of Bmw
Case Study Report
Strategic Management 313
Unit Index Number 3522
Semester 1, 2006
BMW Automobiles
[pic]
Group Members
Daniel Smentek, 13264679
Melanie Bernroitner, 13264682
Marie-Charlotte Neumann, 13264640
Submitted on, May 16, 2006
Table of Contents
Executive Summary 4
Introduction 5
BMW and the Automobile Industry 6
Aspects of the Automobile Industry 6
Historical Background of BMW 6
BMW in the Global Environment 9
General Environment of the Automobile Industry 9
Five Forces of the Automobile Industry 14
Competitive Structure of the Automobile Industry 17
BMW’s Direct Competition 22
BMW’s Resources and Capabilities 25
Tangible Resources 25
Intangible Resources: 28
Capabilities 29
Core Competencies 30
Potential Action Steps for BMW 33
BMW’s Strategy towards Success 37
References 41
Appendices 45
List of Illustrations
Figure 1: Report 's Course of Action 5
Figure 2: Labour Costs in EU Countries 2005 11
Figure 3: Outcome of General Environment Analysis 14
Figure 4: Evaluation of Porter 's Five Forces of Competition 17
Figure 5: Strategic Map 20
Figure 6: Profit Margins 26
Figure 7: SWOT Analysis BMW 2006 33
Executive Summary
The following report analyses the automobile operations of the BMW group in regard to its competitive position in the automobile market. BMW is a German premium car manufacturer comprising the three brands BMW, Mini and Rolls-Royce.
The analysis of the external environment indicates an attractive but challenging general environment. The industry environment shows low threat of new entrants, low bargaining power of suppliers, high bargaining power of buyers, moderate threat of substitute products and intense rivalry among competitors. In order to get a better understanding of the industry’s competitive structure, a strategic map has been developed. Thereby the DaimlerChrysler’s Mercedes Car Group has been
Strategic Management 313
Unit Index Number 3522
Semester 1, 2006
BMW Automobiles
[pic]
Group Members
Daniel Smentek, 13264679
Melanie Bernroitner, 13264682
Marie-Charlotte Neumann, 13264640
Submitted on, May 16, 2006
Table of Contents
Executive Summary 4
Introduction 5
BMW and the Automobile Industry 6
Aspects of the Automobile Industry 6
Historical Background of BMW 6
BMW in the Global Environment 9
General Environment of the Automobile Industry 9
Five Forces of the Automobile Industry 14
Competitive Structure of the Automobile Industry 17
BMW’s Direct Competition 22
BMW’s Resources and Capabilities 25
Tangible Resources 25
Intangible Resources: 28
Capabilities 29
Core Competencies 30
Potential Action Steps for BMW 33
BMW’s Strategy towards Success 37
References 41
Appendices 45
List of Illustrations
Figure 1: Report 's Course of Action 5
Figure 2: Labour Costs in EU Countries 2005 11
Figure 3: Outcome of General Environment Analysis 14
Figure 4: Evaluation of Porter 's Five Forces of Competition 17
Figure 5: Strategic Map 20
Figure 6: Profit Margins 26
Figure 7: SWOT Analysis BMW 2006 33
Executive Summary
The following report analyses the automobile operations of the BMW group in regard to its competitive position in the automobile market. BMW is a German premium car manufacturer comprising the three brands BMW, Mini and Rolls-Royce.
The analysis of the external environment indicates an attractive but challenging general environment. The industry environment shows low threat of new entrants, low bargaining power of suppliers, high bargaining power of buyers, moderate threat of substitute products and intense rivalry among competitors. In order to get a better understanding of the industry’s competitive structure, a strategic map has been developed. Thereby the DaimlerChrysler’s Mercedes Car Group has been
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